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Matolcsy proposes HUF 250 bln fiscal stability fund to PM

National Economy Minister György Matolcsy said he proposed to Prime Minister Viktor Orban establishing a HUF 250 billion fiscal stability fund to protect against external risk.

The stability reserves fund, to be established in this year's budget, would act as a buffer against the rolling waves of the European financial system in the presence of serious external risks, Matolcsy said at a press conference in Brussels on Friday.

The reserves would only be spent after risks were present, otherwise they would be made available again at the end of the year for goals in the general government act, he said.

The money, equivalent to about 1% of GDP, would come from budget chapters at present; the government is not considering drawing in additional resources, he added.

The fund could serve as a guarantee that fiscal policy aiming to keep the general government deficit under 3% of GDP can be carried out, Matolcsy said.

The Prime Minister could take a decision on the matter already on Friday, he said. Depending on the decision, the ministry's staff is prepared to work at the weekend on the details of the proposal so it could be submitted to the government as early as Monday, he added. (MTI – Econews)