Mar 09, 2016

Hungarian Government Declares State of Emergency Due to Mass Migration

“The Government has declared a nationwide state of emergency due to mass migration”, Minister of Interior Sándor Pintér announced in Budapest on Wednesday.

Last year, Hungary still belonged to the group of countries with imbalances. This time, however, the country has been upgraded and listed among top performers, such as Austria, Belgium, Estonia, Romania and Great Britain.

With regard to Hungary, the European Commission notes that risks stemming from external and internal debt have been  mitigated and  the economy’s external financing positions has been significantly improved -- thanks mainly to a massive current account surplus. Several Government measures have been implemented to create a more predictable regulatory environment within the banking sector; the bank tax has been reduced and the share of forex loans has also been reduced, the report finds.

The Commission’s study emphasises the fact that Hungary has made significant steps to ease financing conditions, and the Government has launched state-backed lending schemes.

The European Commission also remarks that EU funds have substantially contributed to investment in Hungary. There is also close cooperation with emerging EU countries for making the utilization and administration of EU funds as efficient as possible.