10.06.2010 - During the informal high-level visit, the European Commission services and IMF staff noted the authorities' commitment to the agreed fiscal target of 3.8% of GDP in 2010. Corrective measures to this end will be discussed in detail in the course of the early July review mission.
On 7-9 June, the European Commission services, in close cooperation with the IMF staff, visited Budapest for informal discussions with the incoming government. The mission reviewed the economic situation and held useful discussions on the government's policy intentions for 2010 and beyond. They welcomed the authorities' commitment to the fiscal target of 3.8% of GDP in 2010 agreed under the EU-IMF supported programme, and their intention to implement measures as needed to ensure that this target is achieved. Further steps will also need to be taken to ensure that the deficit is reduced below 3% of GDP in 2011 as committed and the Hungarian economy continues on a sustainable path. The measures proposed to meet the deficit targets will be formally discussed in detail in the course of the next review mission, scheduled for early July.
Continued EU monitoring
The Commission services will continue to monitor the situation in Hungary not only in the context of the EU medium term assistance but also via its regular EU fiscal surveillance under the Stability and Growth Pact.
So far, Hungary received three instalments of the EU €6.5 billion balance of payments loan, totalling €5.5 billion. In view of the improved access to financing, Hungary has not drawn on EU and IMF assistance upon the completion of the previous reviews in November 2009 and February 2010. The outstanding amount of EU assistance (of up to EUR 1 billion) remains available and can be disbursed if needs arise, as usual subject to policy conditionality. The EU assistance has been granted for a period of 2 years which will end on 3 November 2010.