Brussels, 16/09/2005 (Agence Europe) - European Economic and Monetary Affairs Commissioner Joaquin Almunia said on Friday that Hungary would not manage to keep its pledge of reducing its excess deficit to below 3.6% GDP as set out in its convergence programme for 2005. Almunia said at a debate at the Hungarian Science Academy that following discussions with the Hungarian prime minister and finance minister, it was obvious that the target of cutting the deficit to less than 3.6% of GDP would not be achieved. He warned that there were serious problems down the line in this connection. In July 2005, the Commission approved Budapest's plans to cut its budget to below 3.6% this year, noting that extra effort would be required to reduce it further to below 2.9% of GDP in 2006 (see EUROPE 8990). There is also a problem with the quality of Hungarian statistics, said Commission Almunia, calling for it to be clearly established that the statistics are credible and the adjustments promised for 2006 will be carried out. EU finance ministers will discuss Hungary's situation at the October ECOFIN Council.
Joaquin Almunia added that in November, the European Commission will be reducing its eurozone growth forecasts for 2005 to below the level forecast in April (1.6%) but with good prospects and a positive impact for 2006.