The EU may begin another procedure against Hungary due to overspending
Recommendations of the European semester outline ways to improve the European Union’s resilience and competitiveness, the Trade Commissioner Valdis Dombrovskis said in Brussels on Wednesday.
The country reports published as part of the package review the economic, employment and social developments, and the implementation of the recovery and cohesion programmes, Dombrovskis said.
The recommendations also tackle the most important challenges member states are facing, he said.
In its country report, the EC said Hungary should curb the growth of net expenditures “to put or keep general government debt on a plausibly downward path”, so the general government deficit could converge to 3 percent.
The EC also recommended that Hungary wind down energy support measures before the next heating season, and phase out the remaining price and interest rate caps.
Multiple recommendations
Meanwhile, the government should take measures targeted to improve housing for low-income households, the EC said.
Further, “in light of prolonged delays, [Hungary should] significantly accelerate the implementation of cohesion policy programmes and the recovery and resilience plan, including the REPowerEU chapter, ensuring completion of reforms and investments by August 2026,” the report said.
During the half-time review of cohesion programmes, Hungary should stick to already accepted priorities, and focus on energy poverty and the least developed regions of the country.
The EC also called on Hungary to “improve the regulatory framework and enhance competition in product markets and services by avoiding arbitrary administrative interventions and the selective use of tailor-made legislation providing undue advantage or disadvantage to specific companies, by applying competition scrutiny systematically to business transactions and by reducing the use of emergency measures to what is strictly necessary, in line with the principles of the single market and the rule of law.”
Excessive deficit procedure should be started in the case of 7 member states
Hungary must also improve the “adequacy of the social protection system”, including unemployment benefits; educational attainment levels as well as access to effective active labour market measures, the EC said.
Hungary should also “reduce overall reliance on fossil fuels, accelerate the diversification of gas supply towards non-Russian sources, and take steps to phase out fossil fuel subsidies”, the recommendation said.
The EC has also reviewed 12 member states’ compliance with deficit criteria as laid down in the European treaties, and said an excessive deficit procedure should be started in the case of 7 member states, Belgium, France, Italy, Hungary, Malta, Poland and Slovakia.
In a report prepared on macroeconomic imbalance, the EC said that while most member states returned to a stabler economy, Hungary was still suffering from imbalance.
The EC will now call on the euro group and the European Council to debate and eventually approve the recommendations.
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I know! Let´s buy another airport! Because we can. Just borrow more?
Politicians for you. Bread and games, who will pay…
Finance Minister – Mihaly Varga in cohort with the “present” Prime Minister of Hungary – Victor M. Orban – what an Economic & Financial “mine field” they HAVE jointly DELIVERED us to.
Reading and analysing this article, it just “jumps out” at you, that Hungary is spending far greater amounts of money, call it Debt servicing, that its actually monthly earning – revenue earning, and therefor possible, drawing heavily down on reserves, in an effort to keep it-self afloat.
The Economic & Financial “Path” – the direction and decisions made by Varga & Orban, have been a massive FAILURE.
The ability to see any Stability or Stabilization in the Hungarian Economical & Financial “landscape” remains HIGHLY an Impossibility.
Varga & Orban, as far back as pre the “arrival” of the Corona Virus, that “devastated” Hungary & “other” country’s, they were WARNED – the path – direction they jointly signed off on, was a High, high, high, risk – path, that could in the event, of circumstances have humongous effects – ramifications of Hungary.
Varga & Orban – where WARNED, but choose not to LISTEN, and the result is the cataclysmic mess we witness our Economy to-day, that remains it to been seen as WORSENING.
The EU has very politely called out Hungary’s mafia economics in that quote where it says Hungary should avoid “arbitrary administrative interventions and the selective use of tailor-made legislation providing undue advantage or disadvantage to specific companies.” That kind of government behaviour meets the textbook definition of fascism.
Another day, another potshot at Hungary. They’re already fining us a million euros per day for refusing to take in violent illegal alien invaders the rest of them let into the E.U., most of which is actually our own money that we had paid into the E.U.’s budget.
Now this.
The bittersweet irony here is that the E.U. is hopelessly corrupt, to the extent that it has not been able to pass a single financial audit for more than 20 years now.
How much longer before our continued membership of that bullying outfit stops making any sense…?
Steiner Michael – idiotic response.
No fact(s) to it – nothing of substance, that if put into argument, you would be, as Joan of Arch was – remembering Steiner Michael – that History never Lies – “Burnt at the Stake”.
Joan of Arch – her ending, being “Burnt at the Stake”.- your commentary, could be said deserving of criticism to inflict that you be Humanly DISGRACED and disregarded.