The council of EU finance ministers (Ecofin) and the Commission welcomes the readiness of the IMF to consider providing technical and financial assistance as needed to Hungary, the Presidency of the Ecofin Council and the Commission on Hungary said in a joint statement on Monday.
They said they are ready to use all available instruments to support Hungary to withstand the pressure that have emerged in spite of the improved macroeconomic and financial policies undertaken by the authorities in the last years, including the significant reduction in the government deficit since 2006.
In particular, the EU stands ready to use all tools available in accordance with the Treaty to complement possible IMF financial assistance, the joint statement said.
The Council and the Commission are monitoring the situation closely, and support Hungary’ efforts in tackling current challenges, the statement said noting that the current global economic turmoil is impacting on financial markets in Hungary. In this respect, they welcomed the IMF's readiness to assist Hungary as needed, thereby supporting confidence and stability, and buttressing the adjustment policies implemented by the Hungarian authorities.
“We are in close consultations with the Hungarian authorities and the Fund to ensure that any conditionality attached to possible IMF financing is consistent and mutually reinforcing with EU policy advice under the Treaty framework. This is important to leverage policy commitments to their fullest effect. Policy commitments under a possible Fund program should be underscored in the context of strategy documents under the Treaty, including Convergence Programs and National Reform Programs as appropriate.”
The statement did not say if Hungary requested assistance. (Reuters)