Hungary Does Not Comply With European Council's Budget Recommendations

  • 21 Nov 2019 7:54 AM
  • Hungary Matters
Hungary Does Not Comply With European Council's Budget Recommendations
Hungary has not taken action to comply with European Council budget recommendations, the European Commission said in a report released on Wednesday.

 The EC therefore proposes that the Council should amend recommendations for measures to be taken in 2020 to correct for a big deviation from the country’s medium-term budget targets.

The EC recommends that Hungary take steps to ensure that the nominal growth rate of net primary government expenditure does not exceed 4.7% in 2020, corresponding to an annual structural adjustment of 0.75% of GDP.

The EC said the Council should also recommend that Hungary should “use any windfall gains for deficit reduction” and “compensate unexpected revenue shortfalls with high-quality permanent fiscal measures”.

Hungary is to report to the Council on actions it has taken by April 15, 2020, according to the proposed recommendation. Both Hungary and Romania have been assessed in the framework of the Stability and Growth Pact.

A warning is made in the case of major alignment deviations and to help EU member states to restore their budgetary positions.

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Video: International Investment Bank In Hungary Denies Russian Secret Service Ties

    Video: International Investment Bank In Hungary Denies Russian Secret Service Ties

    • 25 Mar 2019 8:33 AM

    The management board of the International Investment Bank (IIB), which recently announced it will move its headquarters from Moscow to Budapest later this year, has released a statement denying what it says are “unfounded” media accusations of close ties to the Russian secret service and the Russian state itself.

  • EU Draft Budget Cuts Funding For Hungary By 20%

    EU Draft Budget Cuts Funding For Hungary By 20%

    • 30 May 2018 8:45 AM

    The European Commission has proposed to allocate cohesion funds of 17.9 billion euros for Hungary at 2018 prices in its draft EU budget for 2021-2027, about 20% less than in the previous budgetary period, according to the draft published in Brussels on Tuesday.