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Fidesz: Hungary willing to compromise, but not to give in

A compromise between the government and delegations from the IMF and EU on the conditions for Hungary's financial aid package has to be reached, but neither side will be a hundred-percent winner, vice president of governing Fidesz Lajos Kosa said in an interview broadcast on public television on Wednesday.

Talks between the government and delegations from the IMF and EU on Hungary's financial aid package were suspended at the weekend to give the government more time to clarify open questions.

Mr Kósa noted that the IMF was prescribing a deficit target that is smaller than any EU member state for Hungary, a country in one of the most difficult positions in the EU. "The IMF has to watch out not to lose touch with reality," he said.He said the government wanted to meet the deficit targets and main budget figures "that we did not come up with" (referring to the fact that the agreement was made by the previous government) at any cost.

National Economy Minister György Matolcsy said on Monday that the missions from the IMF and EU supported the government's goal to meet the 3.8%-of-GDP deficit target for 2010 and bring the gap under 3% in 2011, but they did not approve of an extraordinary financial sector tax that is expected to generate HUF 200bn in 2010.

"They don't like the bank levy, however, this HUF 200bn levy will consolidate the Hungarian budget," Mr Matolcsy said. (MTI)