Next year's fiscal deficit could be crucial from the point of view of the European Commission's Excessive Deficit Procedure against Hungary, Minister for National Economy Mihály Varga said on public television late on Sunday. He stated that this year's budget deficit will not pose a problem, because it can be kept under the 3 percent of gross domestic product European Union threshold with minimal adjustment.
On Monday the Minister confirmed that the European Commission has received the list of financial measures announced by the Government on Friday and already asked some clarifying questions before concluding an assessment. He also emphasised that the Commission did not challenge the integrity of the measures.
EU finance and economy ministers will debate in June a proposal by the Commission on the basis of which they could decide on lifting the excessive deficit procedure. Currently there are 20 member states, including Hungary, who have on-going EDPs.
To exit the procedure, a member state must show it is capable of keeping its deficit under the 3 percent threshold in a sustainable manner over a two-year period. Hungary's budget deficit to GDP ratio was 1.9% in 2012, while in 2011 it had a 4.3% budget surplus.
(Ministry for National Economy)