Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Currencies  >  Euro / British Pound (EUR/GBP)    EURGBP   

EURO / BRITISH POUND (EUR/GBP)

SummaryQuotesChartsNews 
News SummaryAll news

Hungary must maintain fiscal discipline in face of slowdown - minister

share with twitter share with LinkedIn share with facebook
share via e-mail
09/07/2019 | 07:31am EDT
Hungarian Finance Minister Mihaly Varga speaks during an interview in Budapest

BUDAPEST (Reuters) - Risks to global economic growth are unlikely to trigger an outright recession, Hungary's Finance Minister Mihaly Varga said on Saturday, adding that the best way to tackle a slowdown was to maintain fiscal discipline and market stability.

"Whenever there is a slowdown and we cannot speak of an acceleration of growth cycles, positions of balance always come to the fore," Varga told a meeting of Hungarian economists.

"We must avoid fiscal profligacy and maintain fiscal discipline and rigour," Varga said.

On Thursday, central bank Governor Gyorgy Matolcsy said risks to global growth, such as Brexit, the U.S.-China trade war and a slowdown in the euro zone, mean Hungary should consider a new programme to bolster economic growth.

Varga said, however, that the government's commitment to cut the budget deficit to 1% of gross domestic product and set aside fiscal buffers worth the same amount next year was the best approach to curb risks to growth in the current environment.

In the longer run, Prime Minister Viktor Orban's government, which has sharply lowered Hungary's budget shortfall and public debt over the past decade, is aiming for a balanced budget.

"We cannot say one week that we should do a budget with zero deficit and cut the shortfall as quickly as possible only to say the following week that we should start overspending and launch new stimulus," Varga said.

He said the budget must remain on a conservative path and Hungary should strive to maintain its high investment rate to keep convergence towards richer Western European peers on track.

Varga said of about 100 new foreign investment projects in the pipeline, three have been scrapped for reasons he did not specify. Another three projects were on hold due to the global economic slowdown, he said.

"But the overwhelming majority of these projects will be implemented," Varga said, adding that Hungary needed a stable and predictable exchange rate.

(Reporting by Gergely Szakacs; Editing by Alexander Smith)

By Gergely Szakacs

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on EURO / BRITISH POUND (EUR/
02:16aSterling to take a pasting if UK seeks no extension for EU trade talks - Reut..
RE
06/03BoE says advising banks to prepare for possible no-deal Brexit
RE
06/03NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
06/03NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
06/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
06/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
06/02Dollar falls as focus shifts to recovery prospects
RE
06/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
06/02NEWS HIGHLIGHTS : Top Global Markets News of the Day
DJ
06/02NEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
More news
Chart EURO / BRITISH POUND (EUR/GBP)
Duration : Period :
Euro / British Pound (EUR/GBP) Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends EURO / BRITISH POUND (EUR/
Short TermMid-TermLong Term
TrendsBullishNeutralNeutral