Given a substantial deterioration of the budgetary outlook in Hungary, the European Commission has recommended to the Council to decide for the second time this year that the Hungarian government has failed to take effective action to correct its deficit. The deficit targets that the government set itself for 2005 and 2006 will be missed by a large margin, calling into question the 2008 deadline for correcting the deficit below the 3% Treaty reference value.
“The substantial deviation, both in 2005 and 2006, from the planned adjustment path is worrying and puts into question the credibility of the correction of the excessive deficit by 2008,” said Joaquín Almunia, European Commissioner for Economic and Monetary Affairs.
Link to press release
Link to Commission Recommendation
