The Government considers the proposal of the European Commission a great achievement which recommends that at the 20 June session the former verdict of the Economic and Financial Affairs Council (Ecofin) with regard to the temporary suspension of resources from the Cohesion Fund for Hungary be revoked.

This decision is part of the report by the European Commission on the Convergence Programme and the National Reform Programme which were included in Széll Kálmán Plan 2.0. The European Commission – as a confirmation of its fiscal estimate of the spring outlook – forecasts for 2012 and 2013 a deficit below the 3 percent of GDP reference figure. The Commission, however, after having considered new information provided by the Ministry for National Economy after the spring outlook had been completed, reduced its deficit estimate regarding the deficit for 2013. Consequently, it now expects a deficit of 2.7 percent for 2013 instead of the 2.9 percent figure of early March. According to the evaluation of the Commission, Hungary conducted a fiscal policy in line with the recommendation of the Commission of 13 March which will also be the basis of a future decision to cancel the Excessive Deficit Procedure that has been ongoing since 2004. The report of the Commission confirms that the economic policy objectives and measures described by the Széll Kálmán Plan 2.0 can efficiently handle the challenges which the Hungarian economy faces. Concrete proposals will be finalized at the session of the Council of the European Union due to take place in the second half of June.

(Ministry for National Economy)