Hungary faces deficit pressure

AROUND €7bn of European funds due to Hungary could be suspended if the country does not bring its budget into line with the new EU rules, Euro Commissioner Olli Rehn has warned.

But many other countries could be forced to take additional measures to cut spending and increase taxes once the Commission revises its forecasts to take into account the economic downturn, the commissioner hinted.

Hungary was the only one of five member states examined by the Commission to take insufficient action to bring its budget below 3% of GDP in a sustainable manner. Belgium, Cyprus, Malta, Poland and Hungary were warned in November the forecasts suggested they were not on track and urged to take additional action.