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In its assessment published on Thursday, the European Commission acknowledged that the Hungarian budget would remain stable in the coming years. The government is committed to the consistency between fiscal balance and economic growth, as the two “go hand in hand,” the Ministry for National Economy said in reaction to the assessment.
Under the European Union’s new fiscal policies framework, all Member States are required to prepare medium-term fiscal-structural plans, explained the ministry. Following the submission of Hungary’s medium-term plan on November 4, 2024, intensive consultations were held with the relevant experts of the European Commission to clarify any proposed questions and specifications that had arisen.
The European Commission issued a positive assessment of the Hungarian medium-term fiscal plan on Thursday.
The Commission also considers that despite the adverse external economic conditions, both the budget deficit and public debt will continue to decline in the coming years.
Hungary remains committed to fiscal discipline, with the government aiming to reduce the budget deficit to 3.7% of GDP in 2025 and 2.9% in 2026, and to gradually reduce public debt to below 70% of GDP, wrote the ministry. With these measures, the government will meet the requirements of the new EU economic governance framework, they added.
Via MTI, Featured image: Pixabay