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EC COUNTRY-SPECIFIC RECOMMENDATIONS PUT HUNGARY UNEMPLOYMENT RATE BELOW EU AVERAGE

 

The European Commission’s draft of country-specific recommendations for Hungary published on Wednesday puts the country’s 2020 unemployment rate below the European Union average, citing favourable employment trends, the Finance Ministry has said.
In view of the novel coronavirus pandemic, the EC has decided not to examine member states’ deviation from the adjustment path towards the medium-term budgetary objective, the ministry said, citing the recommendations published as part of the cycle of the European Semester of economic policy coordination.
Whereas the EC sees the EU’s jobless rate rising to 9% this year from 6.7% in 2019, Hungary is projected to see a lower unemployment rate thanks to positive developments seen in this area in recent years, it said. The commission also acknowledged improvements in Hungary’s overall poverty situation and welcomed ongoing investments in the digitalisation of education.
The ministry also said that reservations about the tax system in Hungary labelled as “aggressive tax planning” were unfounded. It said the criticism was “unfair”, arguing that most foreign investments to Hungary originated from within the EU in recent years and it is the commonwealth guidelines that govern the taxation of such investments.
According to the ministry, the EC draft is not free of political overtones this year either, but the Hungarian government will do its utmost to ensure that the European Semester is a venue for constructive professional discussions focused exclusively on economic policy.