While the government sees it as 3.1%, the commission expects 2.8% of GDP this year, he added.

Concerning the commission’s latest recommendations to Hungary, on the agenda of talks between Varga and Dombrovskis, the Hungarian minister said disputed issues included Hungary’s fostered work schemes.

He said that those programmes were a success story, with 13% of the participants finding jobs on the labour market.

Another bone of contention between the government and Brussels is Hungary’s flat tax system, which Hungary will not change as it has “met the expectations” of boosting the economy and employment, Varga said.

Dombrovskis said the Hungarian economy is growing well, and noted that Hungary’s 3.6% growth rate in 2014 had been the second biggest in the EU.

He added, however, that the Hungarian government disagreed with the commission’s position that Hungary will need fiscal adjustments of 0.5% of GDP this year, and 0.6% in 2016.

Concerning Hungary’s banking sector, Dombrovskis said that its operations were hindered by the special tax levied on banks and a high rate of bad debts.

He noted the Hungarian government’s commitment to sell its stakes in commercial banks, and said that the commission was encouraging Hungary to do so.

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MTI photo: Soós Lajos