EC proposes unprecedented freeze in funding for Hungary over fiscal gap; could result in EUR 495 million “hole” in 2013 budget [3]

The European Commission on Wednesday said it proposed the suspension of EUR 495m of Cohesion Fund allocations for Hungary for 2013 because of the country’s failure to address its excessive deficit. “This unprecedented step follows the Commission’s repeated warnings to Hungary urging it to step up its efforts to end the country’s excessive government deficit, and its subsequent failure to take appropriate action,” the Commission said. [more]

Gov’t to cut subsidies for drugs, Budapest public transport to meet deficit target [5]

The government has decided to take several measures necessary to meet Hungary’s deficit targets for this year and 2013, including reducing state subsidies for medications this year and cutting central funds for Budapest’s troubled public transport company BKV next year, according to a government decree published in the Hungarian Gazette on Tuesday. [more]

EU to move to suspend funds to Hungary, EU official says

The European Commission will adopt a proposal tomorrow to suspend infrastructure-development subsidies to Hungary after the country failed to curb its deficit in a sustainable way, a European official said. The commission, the European Union’s Brussels-based regulator, will propose halting the so-called cohesion funding to Hungary for one year starting on Jan. 1, 2013, the official said on condition of anonymity because the discussions are private. The decision is linked to the nation’s fiscal policy and not to recent EU infringement proceedings against the government in three areas including central-bank independence, the official said.

Ministry says EU doubts about new food, recreation vouchers unfounded [2]

The European Commission’s doubts about Hungary’s new food and recreational vouchers are incomprehensible and unwarranted, the Economy Ministry told MTI on Monday. The European Commission has asked the Hungarian authorities under the EU Pilot programme to provide information about some aspects of the new food voucher system, the ministry said. [more]

Analysts up 2012 growth forecast for Hungary on stronger German outlook

Central and Eastern Europe will likely see a stronger-than-expected growth in the next two years on the back of a rebounding German recovery that should help Hungary to avoid a full-year recession in 2012, London-based emerging markets analysts said on Friday. [more]