| Author (Person) | Eddy, Kester, Pignal, Stanley |
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| Series Title | Financial Times |
| Series Details | 23.2.12 |
| Publication Date | 23/02/2012 |
| Content Type | News |
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The European Commission proposed on the 22 February 2012 to suspend €495m of Cohesion Fund commitments taking effect on 1 January 2013, representing 0.5 % of GDP and 29% of the country's cohesion fund allocations for 2013. This unprecedented step follows the Commission's repeated warnings to Hungary urging it to step up its efforts to end the country's excessive government deficit, and its subsequent failure to take appropriate action. On 11 January 2012 the European Commission concluded, as part of the Excessive Deficit Procedure (EDP), that Hungary had not taken effective action to bring its deficit to below the target of 3% of GDP by 2011 in a sustainable and credible manner. Hungary condemned the move as 'unfounded and unfair'. Budapest feels it was being unfairly singled out by the Commission, perhaps because the budget fight cames on top of a wide-ranging argument between Hungary and the European Commission over a new constitution adopted in 2011. |
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| Countries / Regions | Hungary |
