Hungary launches large-scale reform, cuts debt, econmin tells EC commissioner

Budapest, February 4 (MTI) – Hungary has launched large-scale structural reforms that are expected to reduce national debt to below 70 percent of gross domestic product (GDP), Hungary’s economy minister said in a letter published on the government’s website on Friday.

In a reply to Olli Rehn, the European Commissioner for Economic and Monetary Affairs, Gyorgy Matolcsy commented on the Commissioner’s assessment of Hungary’s situation under the excessive deficit procedure.

    Matolcsy said that as a result of “lasting measures mainly on the expenditure side”, “fiscal consolidation will be sustainable” and 300,000 new jobs will be created by the end of 2014. He said new measures would be announced in February.

    Matolcsy said he welcomed the European Commission’s projection that Hungary could generate a budget deficit of below 3 percent of GDP this year or even post a surplus for the first time since the excessive deficit procedure has been launched against it.

    Rehn in an earlier letter warned that the surplus in Hungary’s public finances will be a result of measures which cannot be sustained and national debt is only expected to drop temporarily in 2011.