Brussels, 29/02/2012 (Agence Europe) - Admitting to a “minor point of friction with the European Commission” over its public deficit figures, Hungary assured members of the parliament of its intention to take control of its public finances and avoid the freezing of some of its cohesion funds next year. Speaking on his own behalf, Zoltan Csefalvay, Hungarian Secretary of State with responsibility for strategy within the Ministry for the National Economy, remained cautious over the subject and recommended optimism.
Economic dialogue. On Wednesday 29 February, the Hungarian minister for the economy was the first to address the MEPs of the parliamentary committee on economic and monetary affairs in the framework of economic dialogue brought in by the revised stability pact. He stressed that his country was doing all in its power to avoid the threat brandished last week by the European Commission of freezing nearly a third of its cohesion funds (€495 million) earmarked for the country in 2013, if its public deficit is not corrected this year. The country now has a year to get its budget back in hand in order to keep the money due to it.
Staving off the threat of suspension. Csefalvay did not hide the fact that the opinions of the Commission and of his government differ over the figures. “There is a minor point of friction with the European Commission”, he said, explaining that the “deficit will be 2.8% of GDP, the European Commission says 3.25%, but the main thing is that we are bringing this deficit down.” He assured the MEPs that the country was determined to keep its deficit below the all-important 3% mark. “Hungary has taken steps in February and hopes that the Commission will recognise that these measures will have a positive effect and stave off the threat of suspending the cohesion funds”, said the Hungarian secretary of state. After some tough questioning by Pervenche Berès (S&D, France) on the private pension funds trick which helped to bring Hungarian deficit figures down last year, he played the controversy down.
No feelings. In response to the question put by Olle Schimdt (ALDE, Sweden), who asked whether Hungary had been treated fairly, Csefalvay played things down. “What we feel is one thing and what we are doing is quite another. We are doing what we have to do, simple as that.” Our country has “put its house in order” and does not see itself as a scapegoat, he added. Confident that his country is on the right track, the secretary of state did not even mention the possible consequences of a freezing of the cohesion funds on the economy or the continuation of European programmes. Nor did he regret the fact that Hungary is the first country under threat of a sanction in the framework of an infringement of good economic governance. (MD/transl.fl)