Hungary agrees to cut budget deficit

Hungary has bowed to a key European Union demand by agreeing to cut its budget deficit to below 3% of gross domestic product in 2011, helping to alleviate investor concerns about the country’s fiscal position.

The government sparked market unease in July 2010 when budget talks with the International Monetary Fund and European Union were suspended after a disagreement about how fast Hungary should cut its deficit and by what means.

ESO: Background information: Hungary PM rejects new IMF deal and austerity http://www.europeansources.info/record/hungary-pm-rejects-new-imf-deal-and-austerity/

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