Consultations regarding the establishment of a Eurozone budgetary instrument are ongoing even after the EP elections as Member States have to date failed to reach an agreement on a number of material issues; issues which divide them the most, Finance Minister Mihály Varga said after the extended meeting of the finance ministers of the countries using the euro (Eurogroup). Hungary continues to insist that the new instrument cannot withdraw funds from non-Eurozone countries and cannot jeopardise the financing of other budgetary goals, the Hungarian minister added.

Pursuant to the declaration adopted at the meeting of the European Union’s heads of state and government on 21 June, it is the duty of the Eurogroup to clarify any pending issues of the package which is aimed at strengthening the Economic and Monetary Union, Mr Varga informed the press. He said Hungary insists that a decision on the distribution of the funds of the Eurozone budgetary instrument must be adopted as part of the EU’s seven-year financial framework, with the agreement of all EU Member States. Pending issues continue to include the method by which relative levels of development and population data are taken into consideration, Mr Varga pointed out, mentioning that, in the interest of the enforcement of proportionate and fair financing principles, GDP per capita data must also be included in the relevant calculations. The issue of funding continues to remain fully open, and today there is even more uncertainty than prior to the adoption of the document that laid down the details, the Minister pointed out.

Hungary has a vested interest in strengthening the EU’s financial stability, and therefore the reform of the European Stability Mechanism (ESM) is important for us even as a Member State outside the Eurozone, Mr Varga highlighted. He said we support the development of a common safety net constituting an element of the Banking Union and a common deposit insurance scheme implemented as part of this.

(Ministry fof Finance)