Stability pledge for Hungary

Published: 22 September 2003 y., Monday
Peter Medgyessy, the Hungarian prime minister, yesterday promised to stabilise the economy following turmoil in the country's currency markets this year, but warned it would take time before interest rates could be reduced. Speaking at a business conference, he also repeated promises to prepare the country for entry into the European Union's exchange rate mechanism next May, and for entry into the eurozone in 2008. Mr Medgyessy said this year's budget deficit would be around 4.8 per cent of GDP, and would be cut next year to 3.8 per cent. The forecast surprised analysts who expect this year's budget deficit to be close to 5.4 per cent. Mr Medgyessy has ordered ministries to cut staffing levels by 10 per cent next year. Stefan Wagstyl and Kester Eddy, Budapest
Šaltinis: news.ft.com
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