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PM Gyurcsány pledges constant measures to reassure markets

Prime Minister Ferenc Gyurcsány stressed the need to convince markets of the stability of Hungary's economy and finances before the European Union summit in Brussels.

“We must constantly send messages to the markets about the stability of Hungary's economy, budget and financial situation. The Hungarian banking sector is strong enough to withstand the pressures caused by the financial crisis,” he told journalists on the sidelines of the summit.

“Hungary's economic fundamentals are strong but global uncertainty is having an impact on the country,” he said.

Gyurcsány said Hungary's agreement with the IMF, announced on Monday, first of all allows the country the possibility to strengthen its position. It gives Hungary a chance to “find significantly cheaper resources in the global financial system than (the cost of finance) at current government bond yields,” he said.

Gyurcsány said he was happy Hungary's proposal to set up an EU-wide financial market regulator --a proposal that received a lukewarm reception half a year earlier - now found significant support. European Commission president Jose Manuel Barroso has said he intends to ask for a body of experts to be set up to work out the conditions for the establishing such a regulator, Gyurcsány noted.

Hungary would like to see European regulations made more flexible in order to react more quickly to situations such as the current financial crisis, he said.

Opposition leader Viktor Orbán late on Wednesday asked MEPs to support the prime minister's proposals in Brussels related to the global financial crisis, acting on a request by Gyurcsány. (MTI – Econews)