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Europe Live Thursday 23rd May 2013

The austerity plan in Hungary

30th April 2012

The Hungarian government sent Brussels its austerity plan on 23rd April, notably designed to prevent the freezing of European funds destined for Hungary. "The government sent Brussels its Kalman Szell 2.0 programme, which includes a convergence programme, and the government hopes that after eight years the country can now emerge from the excessive deficit procedure" announced the Economy Ministry. Mid-March the EU Finance Ministers approved the freezing of 495 million € in cohesion funds designed for Hungary because of repeated excessive public deficits. The decision came after a recommendation made by the European Commission. The freezing of funds is due to take effect in January 2013 but the sanction will be lifted "immediately" if Hungary presents corrective measures by 22nd June.

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