According to the Minister of Finance, Brussels did not succeed in bringing the Hungarian economy back even after several years of delay, despite the blocked resources, we are 5 percent ahead of the pre-pandemic performance.

The Hungarian government is committed to restoring the balance of the budget as quickly as possible, and to ensuring that the budget operates with as little deficit and decreasing public debt as possible.

the finance minister announced in Brussels on Tuesday.

Speaking to Hungarian journalists after the meeting of the Council of Finance Ministers of the EU Member States (Ecofin), Mihály Varga emphasized that the growth of the economy depends to a significant extent on when the Russian-Ukrainian war ends. Although inflation returned to a lower level more quickly, this did not go hand in hand with economic growth.

Economies are stagnating, recovery awaits.

It is no coincidence that the European Commission's latest report lowered the expected economic growth of the European Union this year from 1.3 percent to 0.9 percent, while the Hungarian economy is still expected to be at the top of the EU growth ranking, he pointed out. The growth prospects of the Hungarian economy are positive, the Brussels body expects growth of 2.4 percent this year and 3.6 percent next year, the minister reminded.

"The European Commission did not succeed in bringing the Hungarian economy back even after several years of political delay, despite the blocked resources, we exceed the performance before the epidemic by 5 percent, compared to the EU average of 3.5 percent," he said. Mihály Varga stated:

the Hungarian government is committed to restoring the balance of the budget as quickly as possible,

and that the budget operates with as little deficit as possible and with a decreasing state debt.

"The extent of the Hungarian public debt also decreased at the end of last year compared to the end of the previous year, so we are on a path similar to the one that characterized the debt levels between 2010 and 2019, until the onset of the coronavirus epidemic," he said. Hungary's goal is to have a 4.5 percent public budget deficit this year, he stated. Mihály Varga said in relation to the EU recovery fund (RRF) after the coronavirus epidemic:

"after two years of political delay, the previously blocked funds have been continuously arriving in Hungary since December".

In the period since December, Hungary received HUF 550 billion in previously frozen aid

- reminded the Minister of Finance, and then added: "implementation as soon as possible is still in our interest, since the original goal of the fund would have been the rapid recovery".

The position of the Hungarian government remains unchanged: the instrument can contribute to the recovery of the economies of the European Union as quickly as possible. However, the mid-term evaluation shows that there is a shortfall of about 100 billion euros in terms of payment compared to previous plans, he said.

Mihály Varga also touched on the fact that the finance ministers of the member states evaluated the role of social investments together with the members of the Employment Social Policy Health and Consumer Protection Council (EPSCO). Although everyone is aware that investments in the social field only have a long-term effect, they are important, as they can significantly contribute to social peace, he said.

In this context, he indicated

the Hungarian government "built a very serious family support system" last year.

Among the European Union countries, Hungary has one of the most extensive family support systems, he underlined. The Hungarian budget includes HUF 3,300 billion in annual support for this purpose, he reminded. The minister stated: Hungary believes that this is a worthwhile investment, as it has already been able to change demographic trends in the last ten years.

"Our goal is that these demographic trends remain unchanged with the increase in the fertility rate,

go hand in hand with greater childbearing and a reversal of the population trend," he added. Finally, the Minister of Finance said that the member countries support the extension of the expiring mandate of Krisstalina Georgieva, the Executive Director of the International Monetary Fund. "Kristalina Georgieva can handle the support of the Europeans, the support of Europe and the support of Ecofin," added Mihály Varga.

MTI

Featured image: Finance Minister Mihály Varga arrives at the Ecofin meeting in Brussels on March 12, 2024. MTI/EPA/Olivier Hoslet