Press Release: Commission assesses convergence programmes of Hungary, Sweden and the United Kingdom

Having examined its updated convergence programme[1], the European Commission finds that Sweden’s budgetary stance is a sound one as it has surpassed its medium-term objective, a surplus of 1% of GDP, by a large margin and plans for equally safe positions in the years ahead. The pace of fiscal consolidation in the United Kingdom appears insufficient and should be strengthened significantly. Regarding Hungary, the budgetary stance in its updated programme seems broadly consistent with a durable correction of the excessive deficit by 2009. But for this to happen, the government needs to implement the planned budgetary measures and structural reforms fully and effectively. Hungary is at high risk with regard to the long-term sustainability of its public finances, while the United Kingdom is at medium risk and Sweden at low risk[2].