Statement From ECOFIN and EU Commission on Hungary About Impact of Adverse Market Conditions on Hungary
The current adverse global economic and financial environment is impacting on financial markets in Hungary. ECOFINl and the Commission are monitoring the situation closely, and support Hungary’ efforts in tackling current challenges. In this respect, ECOFIN welcomes the readiness of the IMF to consider providing technical and financial assistance as needed to Hungary, thereby supporting confidence and stability, and buttressing the adjustment policies implemented by the Hungarian authorities. We are in close consultations with the Hungarian authorities and the Fund to ensure that any conditionality attached to possible IMF financing is consistent and mutually reinforcing with EU policy advice under the Treaty framework. This is important to leverage policy commitments to their fullest effect. Policy commitments under a possible Fund programme should be underscored in the context of strategy documents under the Treaty, including Convergence Programmes and National Reform Programmes as appropriate. We are committed to use all available instruments with a view to supporting Hungary in steering its economy through these difficult times and to withstand the market pressures that have emerged in spite of the improved macroeconomic and financial policies undertaken by the authorities in the last years, including the significant reduction in the government deficit since 2006. In particular, the EU stands ready to use all tools available in accordance with the Treaty to complement possible IMF financial assistance.