Economy
Hungary PM says will not sack Finance Minister over deficit overshoot
According to local media reports, all citing unnamed sources, Veres may be forced out of office by December this year or January 2007 over dissatisfaction over his performance in the cabinet.Gyurcsány reacted on Tuesday by saying he had no plans to reshuffle the government .
Business weekly Figyelő published excerpts of an interview with Gyurcsány on its website www.fn.hu on Wednesday, citing the PM as saying that it was Hungary's economic policy since 2000 that has failed, not the finance minister personally.
He said he “would not sacrifice his Finance Minister", as the budget deficit targets have been missed by miles under every FinMin since 2000, the paper wrote.
Hungary's en route to post a public sector deficit of 10.1% of GDP this year, the biggest in the EU, considerably larger than the original plan for a 6.1% gap.
In its revised euro convergence plan submitted to the European Commission on 1 September, the government pledged to cut the deficit to 3.2% by 2009.
Gyurcsány also told Figyelő that growth would pick up again after two years of stagnation, adding that the restored credibility of economic policy would help interest rates fall. The engine for higher growth, he said, would also be private consumption, EU subsidies and the cabinet's new programme of incentives for small companies.
Hungary's base rate (7.25%) is the highest in the EU and it is expected by analysts to rise further by the end of the year to 8.00% or above.
Gyurcsány also said he would run for President in the Socialist Party (MSZP) irrespective of the outcome of local elections on 1 October. Current President István Hiller announced in early June that he would not run for the post.
The full version of the interview will be published on Thursday.
Veres said today he saw no signs for his dismissal.
Business weekly Figyelő published excerpts of an interview with Gyurcsány on its website www.fn.hu on Wednesday, citing the PM as saying that it was Hungary's economic policy since 2000 that has failed, not the finance minister personally.
He said he “would not sacrifice his Finance Minister", as the budget deficit targets have been missed by miles under every FinMin since 2000, the paper wrote.
Hungary's en route to post a public sector deficit of 10.1% of GDP this year, the biggest in the EU, considerably larger than the original plan for a 6.1% gap.
In its revised euro convergence plan submitted to the European Commission on 1 September, the government pledged to cut the deficit to 3.2% by 2009.
Gyurcsány also told Figyelő that growth would pick up again after two years of stagnation, adding that the restored credibility of economic policy would help interest rates fall. The engine for higher growth, he said, would also be private consumption, EU subsidies and the cabinet's new programme of incentives for small companies.
Hungary's base rate (7.25%) is the highest in the EU and it is expected by analysts to rise further by the end of the year to 8.00% or above.
Gyurcsány also said he would run for President in the Socialist Party (MSZP) irrespective of the outcome of local elections on 1 October. Current President István Hiller announced in early June that he would not run for the post.
The full version of the interview will be published on Thursday.
Veres said today he saw no signs for his dismissal.
