Hungarian finance minister: Previously blocked EU funds continue to arrive

Hungary’s government is committed to restoring balance to the central budget as soon as possible as well as to keeping the deficit as small as possible and the public debt on a downward path, Finance Minister Mihály Varga said in Brussels on Tuesday.

Economic growth depends greatly on when the war between Russia and Ukraine ends, Varga told Hungarian journalists after an Ecofin meeting.

Though inflation was brought down at a quicker rate, this was not coupled with economic growth, the minister said. The economies are stagnating, he said, adding it was “no accident” that the European Commission has lowered this year’s growth forecast for the bloc to 0.9 percent from 1.3 percent. Hungary’s economic outlook, however, was positive, he said, citing the EC’s 2024 GDP growth forecast of 2.4 percent for this year and 3.6 percent for 2025.

Despite the blocked EU funds, Hungary’s economic output exceeds pre-pandemic levels by 5 percent compared with the EU average of 3.5 percent, Varga said.

He said the Hungarian government was committed to restoring balance to the central budget as soon as possible as well as to keeping the deficit as small as possible and the public debt on a downward path.