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Feb 19, 2020

Finance Minister: Hungary aims to further reduce public debt

“Investments in infrastructure, human capital and structural reforms will support long-term growth while boosting private investment,” the finance minister said.

The finance minster has revealed that the Hungarian government plans to keep the momentum of economic growth while maintaining fiscal discipline and reducing public debt.

“In 2019 the Hungarian economy grew by 4.9 percent, while the ratio of government debt to GDP was only 66.4 percent, having improved by nearly 4 percentage points in one year,” Mihály Varga said in a statement.

“The performance of the Hungarian economy — to have a GDP growth of close to 5 percent in two consecutive years — is almost without precedent in the European Union (EU),” the minister underlined.

According to Xinhau, the minister said the central and eastern European region plays an important part in boosting the economy of the EU. He said European and Hungarian economies face many challenges, therefore reforms that boost growth and strengthen the resilience of the economies must continue.

“Investments in infrastructure, human capital and structural reforms will support long-term growth while boosting private investment,” the minister added.

Meanwhile, following a meeting with his EU peers in Brussels recently, Minister Varga said Hungary supports changes to the European Union’s framework for economic governance if they better stimulate investment.

The European Commission presented an assessment of the effectiveness of the current framework for economic and fiscal surveillance at the Ecofin meeting.

Minister Varga said that investments in infrastructure, human capital and structural reforms support long-term growth while also spurring private investment.

“From the Hungarian side, we deem necessary a reduction in the number of and a simplification of EU fiscal rules. Furthermore, we agree that instead of sanctions, positive incentives can better support compliance with the rules,” he said.

 Photo credit: kormany.hu