Good news: EU’s excessive deficit procedure against Hungary suspended
The European Commission has suspended an excessive deficit procedure (EDP) against Hungary, the National Economy Ministry said on Wednesday.
Hungary’s 2025 budget remains on a stable and sustainable path, the ministry said, affirming the government’s commitment to fiscal discipline and the reduction of the deficit and state debt levels.
The ministry said the EC’s decision was an acknowledgment of Hungary’s fiscal stability and in line with the activation of an escape clause. The budget gap is set to fall to 4.1pc of GDP this year from 4.9pc in 2024, while the 2026 budget bill targets a 3.7pc-of-GDP gap, it added.
The general government deficit reached 58.6pc of the HUF 4,774bn full-year target in January-May, the ministry said, adding that debt maintenance costs were the only item pushing the balance into the red.
Hungary’s stable financing position and fiscal stability allow the government to carry out Europe’s biggest tax reduction programme, the ministry said. International confidence in Hungary remains strong ahead of an FX issue by the Government Debt Management Agency (ÁKK), it added.
Featured image: depositphotos.com
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