Hungary supports more disciplined EU fiscal policy

The Hungarian government is committed to reducing the country’s budget deficit and public debt, and supports measures aimed at more stringent financial management at the level of the European Union, the finance minister said on Monday.

Mihály Varga spoke after a video conference with Spanish counterpart Nadia Calvino, the finance ministry said in a statement.

Varga said Hungary would support a draft concerning the community’s economic government, which the EU’s incumbent Spanish presidency “changed in line with Hungary’s interests”.

The budget deficit and debt of EU members have considerably increased due to the coronavirus pandemic and the war, which call for a reform of community rules, Varga said.

“During the talks, we agreed that balance indicators should be improved, but consistently rejected giving the European Commission excessive powers in defining the budgets of member states,” the statement quoted Varga as saying.

The Spanish presidency “has significantly” changed the commission’s original proposal, with the new version “reducing the influence of the commission” while increasing the role of members in economic governance, he said.

The new draft also includes a change Hungary requested, under which a member’s increased defence spending should be taken into account when assessing its deficit according to Maastricht criteria, the statement said.