Are you sure?

No need for new austerity measures, says FinMin

  There is no need for new austerity measures as there is little difference between the government’s projections and the European Commission’s prognosis, Finance Minister Péter Oszkó told MTI on Wednesday, before the start of a talks with the European Commission on Hungary’s crisis management program.

There will not be any big changes for Hungary’s macroeconomic path this year, and there is no big difference between the EU’s and Hungary’s plans, Oszkó said. Oszkó said earlier that the government would finalize its crisis management program when the EU published its fresh macroeconomic forecast.

The European Commission’s spring forecast, published on Monday, showed it expects Hungary’s economy to contract 6.3% in 2009 and the general government deficit to reach 3.4% of GDP.

The government targets a 5.5-6.0% drop in GDP and sees the deficit falling under 3% of GDP.

Oszkó noted that the Commission had said in its fresh forecast that it could not offer a full assessment of Hungary’s crisis management program because it still did not know all of the details.

The government will hold talks with European Commission representatives until May 18. Afterward, the two sides will announce a joint stand on which basis the government can decide targets for GDP and the deficit. (MTI-Econews)