EU council recommends measures to reduce govt. deficit in Hungary

European Union (EU) finance ministers on Tuesday recommended corrective measures to reduce Hungary's government deficit below 3 percent of the GDP by 2009.

The 3-percent threshold is required by the EU treaty.

The ministers who met in a regular Economic and Financial Affairs Council meeting in Luxembourg, expressed concern over the worsening budget deficit in Hungary -- expected to be around 10 percent of the GDP in 2006.

They called for "urgent, determined and sustained action."

Action was needed on both the expenditure and the revenue side of the budget, said council conclusions.

The council regretted the substantial deterioration in Hungarian public finances in recent years and called for a prompt correction.

It noted that it is the third time that the council issues such recommendations and that Hungary did not comply with its previous recommendations of July 2004 and March 2005.

The council established the deadline of April 10, 2007 for Hungary to take effective action in order to achieve the deficit targets for 2006 and 2007.

Source: Xinhua