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They welcome the announcement by the government of structural measures contained in the "Széll Kálmán Plan" that should improve the sustainability of public finances.Buy nike running shoes online They expect the Government to provide further details in the Convergence Programme due to be submitted to the EU in mid April. Based on this, an assessment will be made whether this is sufficient to ensure that the deficit remains below 3% of GDP in the coming years.

"I am pleased that Hungary is embarking on a strategy to consolidate public finances and to boost employment", said Olli Rehn, Commissioner for Economic and Monetary Affairs.

"It will be necessary to ensure that the adjustment effort is large, frontloaded enough and backed by specific measures so that the excessive deficit can be sustainably corrected. I trust that the authorities will be ready to take additional measures should this not be the case already. In addition, care needs to be taken to provide a stable and credible environment for both domestic and international investors," he added.

The EC-IMF mission reviewed the economic situation and welcomed that after the stronger-than-expected expansion of 1.2% last year, GDP growth is set to roughly double this year.

"Indeed domestic demand will contribute positively to growth while net exports grow, and unemployment will nike mens acg sandals 2011 start declining. The current account continues to be in surplus although with the pickup of growth it may diminish somewhat," the EC noted.

"In view of the fragile global financial market situation and the challenging external financing needs that Hungary faces over the coming years, prudent fiscal policy, a stable and credible investment framework, and a cautious financing policy will play an important role," the EU executive said in a statement on Monday.

The mission welcomed the "Széll Kálmán plan" to introduce structural measures on the expenditure side, including social and pension expenditures, but also savings in local government and the transport sector. Based on the specific measures to be announced in the coming weeks, it will assess its impact on the public deficit in 2011 and beyond, in the framework of the spring forecast that will be published on 13 May.

It will also evaluate it further in the assessment of the Convergence Programme and under the Excessive Deficit Procedure. Noting that the transport and the local government sectors have been a source of budgetary slippages in the past, the mission welcomed the commitment to tackle these areas and stressed the importance of concrete restructuring plans.

"The financial sector, as well as other extraordinary sectoral levies introduced last year, will help in meeting short-term budgetary commitments. However, Commission reiterates that these levies in their current form are not supportive of the country’s investment climate and growth," the EC said.

Credit dynamics are subdued inbuy Reebok ZigTech online both household and corporate sector despite the economic recovery, it added.

The EU executive underlined the need to "limit the fiscal impact of any support schemes for existing borrowers in foreign exchange" and welcomed the announcement of the authorities to consult the Commission on these matters.

"Such ex-ante consultation should help prevent an infringement of EU law," it added.