The European Union (EU) and the International Monetary Fund (IMF) are prepared to resume negotiations with Hungary’s government if the authorities conclude that such talks can produce positive results, European Commissioner for Economic and Financial Affairs Olli Rehn informed Hungarian Member of the European Parliament (MEP) Edit Herczog in a written statement over the weekend.
Mr Rehn sent Ms Herczog the statement in response to the opposition Hungarian Socialist Party MEP’s question submitted to the European Commission on August 3: “What was the precise reason for the decision of the Commission’s delegation to leave the Hungarian talks earlier than planned?” and “What are the conditions under which the Commission would return to the negotiating table with the delegation from the Hungarian government?”
“The Commission and the International Monetary Fund are both prepared to continue the negotiations when the authorities conclude that such talks can produce results,” Mr Rehn responded in a Hungarian-language statement.
The commissioner noted that “The delegation applauded the government’s commitment with regard to a 2010 budget deficit of 3.8pc of GDP and the numerous corrective measures taken to address the failure to meet the targeted budget deficit in the first half of 2010 that served to significantly increase revenue and decrease expenditures.”
But Mr Rehn added that “The Government was, however, unable to provide further information with regard to several open questions at the time of the negotiations. The measures that have been considered thus far continue to fall short of those required for the necessary correction and are for the most part transitory in nature. The government must thus increase its efforts to implement a sustainable reduction of the deficit to under 3pc of GDP in line with recommendations from the (EU ministerial) council regarding procedures to be followed in the event of excessive deficit.”
Talks between the International Monetary Fund and the government were suspended on July 19 after the two sides failed to reach agreement regarding the conditions surrounding Hungary’s 2008 IMF-EU standby loan.
it would be a better idea if EU Finance Commissioner Olli Rehn minds his own business and don’t interfere in matters of the hungarian state!!! Ofcourse the EU wants total control, we all know that…
Also the socialist show there real face again. First kissing the feet of sovjet Russia now the ones of sovjet EU….they are still the same internationalist they ever were.
The EU’s mandate is to protect the EU and not memeber states.
IMF was the worst possible solution but in a sense Hungary lucked out as without the IMF loan, it would in the same spot Greece is in now.
Problem with the EU is that Greece is ready to implode again, Ireland bonds have been downgrading and the bond spreads are soaring. Germany and France have no inclination for another bailout etc…