Tamás Fellegi, outgoing chief negotiator with financial organisations, announced at a Budapest financial summit on Thursday that IMF/EU negotiations can start in July, with an expected agreement in the autumn.

Mr. Fellegi said that certain sectors of the Hungarian economy were experiencing serious difficulties; he said that they must be able to maintain a balance of income and expenditure. Financing of the economy has decreased in Hungary and it is the Hungarian Government’s task to ensure an increase in this, but many external factors must also be taken into account. Mr. Fellegi emphasised that for this reason the IMF/EU agreement is of outstanding importance.

With regard to infringement procedures, Mr. Fellegi said that the EU had accepted Hungary’s arguments in certain cases, and that the other objections will be sent to the European Court of Justice. He said that this is not exceptional, and that there is no Member State which is not involved in at least ten to fifteen such infringement procedures.

Mr. Fellegi said that Hungary must meet the stated conditions, and that as a result several proposed amendments to legislation have been put before the Hungarian parliament. Before talks can begin, certain political compromises must be reached and the specific timetable must be agreed.

In parallel with preparations for talks Hungary must update its convergence programme, said the outgoing chief negotiator. He also said that ECOFIN will decide on the excessive deficit procedure on 22 June.

Mr. Fellegi said that ’In relation to agreements, it is important to maintain continuous contact with market players. All key players must be made aware of the fact that Hungary is not playing for time, and is not attempting to play the “Turkish Card”’. He said that the IMF/EU agreement is needed for the financing of the country and by everybody whose economic and political interests are linked to the stability of the economy.

(kormany.hu)