The preparation of the euro-zone budget must not jeopardize existing EU programmes and instruments; accordingly, Hungary regards it acceptable on the condition that funds of the multi-annual budgetary framework and contributions by member states are increased, Minister of Finance Mihály Varga said at an Ecofin meeting in extended format in Bucharest.

As far as Hungary is concerned, it would be more acceptable if the new euro-zone budget, being drafted in line with the initiatives of France and Germany, aimed for harmonizing business cycles among member states that use the common currency, and thus it would not lead to overlaps, he said.

The Euro-group continued to work on the details of the euro-zone budget to meet the June deadline, focusing mainly on the management and decision-making structures, Mihály Varga noted. “We Hungarians are firmly insisting on avoiding overlaps between the objectives of the euro-zone budget and the existing policies and objectives of the EU27,” he said. “Therefore, during the ongoing negotiations, solutions which may lead to parallel objectives and instruments must be avoided,” the Minister added.

Hungary has on several occasions stressed that in the process of the deepening of the Economic and Monetary Union Hungary attaches great importance to fair and equal treatment as well as a level playing field. Accordingly, Hungary supports that the new instrument be introduced within the framework of the EU’s multi-annual financial framework and the respective decision be made via a unanimous vote of the EU27, thus taking into account the interests of non-euro member states, he stressed.

At the session, ministers also discussed the political time-line of the European Deposit Insurance Scheme (EDIS). Commenting on the scheme the Minister said that Hungary supports the overhaul of the banking union and risk-reducing measures but we decidedly oppose the re-regulation of the state exposure of banks and the bolstering of the role of parent banks at the expense of subsidiaries.

(Ministry of Finance)