On Friday, formal proceedings were launched against Hungary over a deficit exceeding three percent of GDP. Apart from that, six other countries – Belgium, France, Poland, Malta, Italy and Slovakia – are also affected. Free Europe.
The Finance Council is expected to decide on the extent of the deficit reduction in late autumn, which could be decided based on the European Commission’s recommendations in November 2023. The EU body expects effective action from the member states concerned. Proposals for debt reduction must be submitted by September 20, and the expected net expenditures for a four-year cycle must be specified.
According to Eurostat data in April, Hungary's general budget deficit in 2023 amounted to 6.7% of GDP, and the public debt level reached 73.5% of GDP. As a result, real GDP decreased by 0.9% compared to its expansion in the previous year by 4.6%.
Although the deficit level is not outrageous or exceptional, it can be assumed that it will be higher than the expected 3 percent this year as well. The Hungarian government's target this year was 4.5 percent, but the committee's measurements raised it to 5.4 percent. It is important.as they calculated with a greater increase in spending.
Among the seven listed member states, Hungary has the second largest public budget deficit, which has increased significantly during the Covid-19 pandemic. Between 2004 and 2013, measures were already underway against Hungary for this reason, and eleven years later, the government must again take measures to curb it. This value is currently the highest in Italy: 7.4 percent, followed by Hungary.
Although not previously on the list, Romania comes in third at 6.6 percent, followed by France at 5.5 and the Poles at 5.1. Malta, Slovakia and Belgium are all below 5 percent, with the former two having a budget deficit of 4.9 percent and the latter 4.4 percent.
