Tweet
Hungary says EU cut in its funds would be a shame
tert.am
19:50 - 03.11.12
The European Union risks undermining the credibility of its drive
against national budget overshoots if it strips Hungary of structural
funds as punishment for running anexcessive deficit, a leader of the
ruling Fidesz party said, according to Reuters.
The EU is due to unveil its assessment of Hungary's latest
deficit-cutting measures on November 7, which could be the basis of a
cut in funds and can also influence Hungary's credit talks with
Brusselsand the International Monetary Fund (IMF).
Lajos Kosa, a Fidesz vice chairman was quoted on Saturday by the daily
Magyar Nemzet as saying that the government had implemented tight
fiscal policy since it was elected in 2010, and a cut in funds would
be "a shame".
"If they do (cut funds), that will have an amazingly bad message in
the entire Union which is cracking anyway even without that," Kosa
said.
While Kosa is regarded as the most outspoken of Fidesz's leaders, the
government's tendency to talk tough about Brussels and the IMF at home
has bolstered expectations that talks over an international aid deal
will eventually fall apart.
Kosa repeated in the interview that Hungary needed an IMF deal but
analysts in a recent Reuters poll saw only a 50 percent chance,
judging that a more positive mood to global markets has eased pressure
on the government's borrowing costs.
Two deficit-cutting packages that Hungary submitted to Brussels in the
past weeks included a further rise in taxes on banks and the
government has said that burden can even grow if the EU wants more
measures.
The central bank and international analysts have said that the heavy
taxation on banks hinders recovery from recession and IMF spokesman
Gerry Rice said on Thursday that Hungary needed a change in attitude
for the talks to go on.
tert.am
19:50 - 03.11.12
The European Union risks undermining the credibility of its drive
against national budget overshoots if it strips Hungary of structural
funds as punishment for running anexcessive deficit, a leader of the
ruling Fidesz party said, according to Reuters.
The EU is due to unveil its assessment of Hungary's latest
deficit-cutting measures on November 7, which could be the basis of a
cut in funds and can also influence Hungary's credit talks with
Brusselsand the International Monetary Fund (IMF).
Lajos Kosa, a Fidesz vice chairman was quoted on Saturday by the daily
Magyar Nemzet as saying that the government had implemented tight
fiscal policy since it was elected in 2010, and a cut in funds would
be "a shame".
"If they do (cut funds), that will have an amazingly bad message in
the entire Union which is cracking anyway even without that," Kosa
said.
While Kosa is regarded as the most outspoken of Fidesz's leaders, the
government's tendency to talk tough about Brussels and the IMF at home
has bolstered expectations that talks over an international aid deal
will eventually fall apart.
Kosa repeated in the interview that Hungary needed an IMF deal but
analysts in a recent Reuters poll saw only a 50 percent chance,
judging that a more positive mood to global markets has eased pressure
on the government's borrowing costs.
Two deficit-cutting packages that Hungary submitted to Brussels in the
past weeks included a further rise in taxes on banks and the
government has said that burden can even grow if the EU wants more
measures.
The central bank and international analysts have said that the heavy
taxation on banks hinders recovery from recession and IMF spokesman
Gerry Rice said on Thursday that Hungary needed a change in attitude
for the talks to go on.