Creating a separate Eurozone budget is contrary to Hungary’s interests, Mihály Varga stressed at the extended meeting of Eurozone finance ministers where attendees discussed the French-German proposal disclosed to the public in November.

The Hungarian Finance Minister added that major risks might emerge should the countries using the euro arrange their finances according to a separate budget, and therefore Hungary does not support the draft.

A separate Eurozone budget would unnecessarily deepen the already existing gap between Member States within and outside the Eurozone, Mr Varga pointed out at Eurogroup’s Brussels meeting. He said developing the economy, promoting cohesion, innovation, research and development are common objectives and tasks for all EU Member States.

At the same time, the proposal would exclude Member States outside the Eurozone from the excess funding of common EU goals, and seeks to achieve more stringent economic policy coordination for the EU27 by strengthening the relationship between economic governance and cohesion policy. Therefore, Hungary takes the view that the French-German proposals give rise to concern, the Minister pointed out.

The draft for creating a separate Eurozone budget was published in the so-called Meseberg Declaration, as part of a series of proposals seeking to intensify the EU’s Economic and Monetary Union, after a meeting between German Chancellor Angela Merkel and French President Emmanuel Macron on 19 June. The draft was finalised in November.

At this point in time, the French-German initiative is only a proposal, the implementation of which is subject to the approval of the other 17 members of the Eurozone, Mr Varga pointed out. The proposal is being rejected by a number of EU countries, including Holland and Finland, as was underlined at the extended November meeting of Eurozone ministers. Due to the significance and importance of the issue, the Hungarian government will discuss the French-German proposals aimed at creating a separate Eurozone budget at its next meeting

(Ministry of Finance)