Substantial fiscal effort needed in 2018 for Hungary to meet requirements – EC recommendation

Brussels, May 22 (MTI) – The European Commission recommends that Hungary in 2017 and 2018 pursue its fiscal policy in line with the requirements of the preventive arm of the Stability and Growth Pact, which translates into a substantial fiscal effort for 2018, the EC said in its draft country-specific recommendation published on Monday.

The commission prepared and published the recommendation, including an opinion on the 2017 National Reform Programme of Hungary and the 2017 Convergence Programme as part of the 2017 cycle of the European Semester of economic policy coordination. The recommendation offers a blueprint for the final recommendations by the European Council for Hungary.

When taking policy actions, consideration should be given to achieving a fiscal stance that contributes to both strengthening the ongoing recovery and ensuring the sustainability of Hungary’s public finances, the EC said.

The commission advised Hungary to complete the reduction of the tax wedge for low-income earners and simplify the tax structure, notably by reducing the most distortive sector-specific taxes.