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The European Union’s decision to withhold Poland and Hungary’s coronavirus recovery funding “clearly is politically motivated”, Hungarian Finance Minister Mihály Varga said on the sidelines of a meeting of EU finance ministers (Ecofin) in Brussels on Tuesday.
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Hungarians support the adoption of the euro more than citizens of most non-eurozone EU countries, according to a survey by Eurobarometer.
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Hungarian annual inflation was 7.4% in December, the Central Statistical Office (KSH) said on Friday. Higher cigarette and vehicle fuel prices continued to be the main drivers, though food and consumer durables prices rose above headline inflation.
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Hungary’s economy is forecast to grow by 5% this year, according to the World Bank, which raised its June projection of 4.7%.
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Hungary’s cash flow-based budget deficit, excluding local councils, reached 5,101.5 billion forints (EUR 14.2bn) at the end of December, the finance ministry said in a preliminary reading of data released on Tuesday.
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Hungary’s government is running a disciplined, tight budget, Mihály Varga, the finance minister, said in an interview to public radio on Sunday, noting that it boosted reserves at the end of last year and rescheduled investments this year.
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