Are you sure?

Hungary to exceed EU budget limit again

Hungary will breach the EU's deficit target this year by twice the permitted amount, the fourth year running it has broken EU rules. The 2005 deficit will be 6.1% of gross domestic product, rather than the original goal of 3.6%, Finance Minister János Veres said yesterday. Next year's target will be 4.7% of GDP instead of 2.9%. Hungary's deficit must be no more than 3% of GDP to adopt the euro. The government, which is increasing spending ahead of elections by May 2006 and has been warned by the EU to cut the deficit, was castigated today by Hungarian Central Bank President Zsigmond Járai who estimated the 2005 deficit could reach 7% of GDP, thwarting euro adoption this decade. (Bloomberg; NG 1, Wed Vg 1, Nb 1)