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European Commission questions viability of Hungarian government's medium-term economic forecast under EDP procedure


Published on 2024-12-09 09:03:30 - MSN
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  • By Tamas Csonka in Budapest Hungary's medium-term fiscal plans are missing significant information and are based on unreliable data. European Commissioner for Economy and Productivity Valdis Dombrovskis said in a letter to Finance Minister Mih
  • ly Varga,

The European Commission has raised concerns about the viability of Hungary's medium-term economic forecast as part of the Excessive Deficit Procedure (EDP). The Commission's assessment, detailed in a report, suggests that Hungary's projections for economic growth, inflation, and fiscal adjustments might be overly optimistic. Specifically, the Commission doubts the government's ability to meet its deficit targets, citing potential risks from high inflation, energy price volatility, and the broader economic environment. The critique comes at a time when Hungary is under pressure to reduce its budget deficit, which has been exacerbated by various economic challenges including the aftermath of the global health crisis and geopolitical tensions. The Commission's scrutiny is part of a broader effort to ensure member states adhere to the EU's fiscal rules, particularly in light of the economic recovery efforts post-COVID-19.

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