Recommendation for a Council Decision abrogating Decision 2004/918/EC on the existence of an excessive deficit in Hungary

The Council decided on 5 July 2004 that an excessive deficit existed in Hungary and adopted a recommendation with a view to bringing the excessive deficit situation to an end by 2008.

On 18 January 2005, the Council considered that Hungary had not taken effective action in response to its recommendation and issued another recommendation on 8 March 2005, confirming the 2008 deadline for the correction of the excessive deficit. On 8 November 2005, the Council decided that Hungary had for the second time failed to comply with the recommendations. Accordingly, it addressed a third recommendation to Hungary on 10 October 2006, postponing the deadline for the correction of the excessive deficit to 2009. On 7 July 2009 the Council concluded that the Hungarian authorities could be considered to have taken effective action in response to the recommendation from October 2006 and, against the background of the severe economic downturn, issued a revised recommendation, setting once more a new deadline for correction, i.e. 2011.

On 13 March 2012, the Council adopted a new recommendation for Hungary to bring the excessive deficit to an end by 2012. The Hungarian authorities were asked to undertake the following steps in particular: (i) to put an end to the excessive deficit situation by 2012 in a credible and sustainable manner; (ii) to undertake an additional fiscal effort of at least 0.5% of GDP to ensure the attainment of the 2012 deficit target of 2.5% of GDP; and (iii) to take the necessary additional measures of a structural nature to ensure that the deficit in 2013 remains well below the 3% of GDP threshold.

In the view of the Council, the excessive deficit in Hungary has been corrected and Decision 2004/918/EC should therefore be abrogated.

• Primary Source

EUR-Lex: COM(2013)388: Follow the progress of this recommendation through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2013:388:FIN

EUR-Lex: SWD(2013)388: Analysis by the Commission services of the budgetary situation in Hungary http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2013:388:FIN

ESO: Background information: Commission takes steps under the Excessive Deficit Procedure http://www.europeansources.info/record/memo-commission-takes-steps-under-the-excessive-deficit-procedure/

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