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A European Commission proposal to determine fiscal policy for European Union member states is unacceptable to the Hungarian government, the finance minister said on the sidelines of an informal meeting of his EU counterparts in Santiago de Compostela, Spain. “We believe that member states’ budgets need to be determined on the basis of national interests, by the governments elected by the people instead of the European Commission making individual deals or applying other preferences,” Mihály Varga told MTI.
At the two-day meeting, the finance ministers also discuss how monetary and fiscal policy can interact, he said. “In Hungary’s economic policy, it is important that the central bank works together with the government to rein in and push down inflation as fast as possible,” he said. Since April, there have been monthly personal consultations to ensure effective joint action, he added. He welcomed the European Central Bank rate decision on Thursday, stating that it was a good message that the rate increase cycle is expected to come to an end.