Extracts from the press conference by Olli Rehn on the Excessive Deficit Procedure
On 11/01/2012 during the press conference in Brussels, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, announced that Hungary has not made sufficient progress towards a timely and sustainable correction of its excessive deficit.
He told journalists that the European Commission has proposed to move to the next stage of the Excessive Deficit Procedure (EDP) and recommended that the Council of Ministers decided that no effective action had been taken to bring the deficit below 3% of GDP in a sustainable manner.
On the contrary, Belgium, Cyprus, Malta and Poland - the other countries that were at risk of not meeting their deadlines of 2011 or 2012 to correct their excessive deficit - had taken effective action. Therefore, the Commission considered that no further steps in the excessive deficit procedure were necessary for these four countries, though it would continue to monitor budgetary developments closely.
This was the first time the EC applied the new rules of the strengthened Stability and Growth Pact (SGP), which were part of the so-called "six-pack" on economic governance, which entered into force on 13/12/2011.