Hungary EconMin challenges EU verdict (2)

In a letter addressed to EU Commissioners László Andor and Olli Rehn, Hungary’s Economy Minister György Matolcsy has expressed “serious concerns over the course of action the Commission took during the European Semester and especially some key elements of its assessment on the Hungarian programme."

According to a ministry press release, the letter has emphasized that Hungary’s opinion “differs substantially, from several aspects" from that of the Commission on the national reform programme and convergence plan. Matolcsy has argued that the Commission’s reference to the “abolishment of the mandatory private pension pillar" is “absolutely misleading" as Hungary’s programmes are intended to avoid “the negative impacts of the mandatory private pension pillar and to improve the sustainability of public finances as a whole" rather than to boost budget revenues as suggested by the Commission’s evaluation.

Further, Matolcsy has said the Commission’s assessment of Hungary’s fiscal consolidation efforts as “back-loaded" gives the wrong impression of the programme. The minister underlined the necessity of tax reform, boosting employment and ensuring 2011 budget targets are met.In the letter, the minister expressed regret that the Commission did not take the opportunity for a dialogue with Hungary on the content of the programme, leaving little time for decision makers to prepare for the upcoming Commission session in June. In Matolcsy’s view “this approach undermines the credibility of the whole procedure".

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