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Gov't maintains deficit targets in spite of EU decision

Although the EU has rejected the proposal to exclude the costs of introducing private-pension funds from deficit calculations, talks on the issue continue and the government nevertheless remains committed to its deficit targets of 3.8% this year and 3% in 2011, state secretary Mihály Varga said in a television program.

Varga also said National Economy Minister György Matolcsy reported on his talks in Washington at Sunday's cabinet meeting. “The changes implemented in economic policy so far have inspired increasing confidence in those financing the country,” the state secretary said, adding that Matolcsy also met with representatives of credit rating agencies, who confirmed that the outlook of the country and the region are improving.

The state secretary emphasized that next year's budget must be compiled in a way that it will cover the most important objectives and it should be matched with a tax reform that can help reduce unemployment.

“We need an economic policy that is able to maintain the balance through extra resources generated by growth,” Varga said. (MTI – Econews)