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Matolcsy to recommend making HUF 250 bln budget freeze permanent

Hungarian National Economy Minister György Matolcsy will recommend to Prime Minister Viktor Orbán making a HUF 250 billion budget freeze permanent, Matolcsy said on Saturday.

Speaking at a press conference winding up a two-day informal meeting of European Union finance ministers in Gödöllő, Matolcsy said that the meeting had reassured him that the Hungarian government had made the right decision when it established a HUF 250 billion stability fund from the 2011 central budget for unforeseen risks early this year.

Matolcsy said he would recommend that Orbán make the HUF 250 billion freeze permanent because of global risks. "Despite good news, the crisis is not over yet, there are still significant imbalances and the banking system is still vulnerable," he said.

The HUF 250 billion set aside as a buffer has affected state spending items and making it permanent will reduce the state's risks, he said.

He also said that he would make the proposal to Orbán early this week, adding that he was confident the government would approve the step.