'Six-pack' in action: Hungary called to order

On 11 January, the European Commission concluded that Hungary has not made sufficient progress towards a timely and sustainable correction of its excessive budgetary deficit and recommended that the Council of Ministers decides that no effective action has been taken to bring the deficit below 3% of GDP in a sustainable manner.

Belgium, Cyprus, Malta and Poland, who were also at risk of not meeting their deadlines for 2011 or 2012 to correct their excessive deficit, have taken effective action. Therefore, the Commission decided not to pursue any further steps in the excessive deficit procedure, though it will continue to monitor budgetary developments in these countries.

This is the first time the Commission has applied the new rules of the strengthened Stability and Growth Pact within the so-called "six-pack" on economic governance, which entered into force on 13 December 2011.

Commission Vice-President for Economic and Monetary Affairs and the Euro Olli Rehn stressed that today's report proved that the six-pack is already delivering. “It has given the European Commission teeth to act when countries fail to bring their deficits under control and reduce their debt,” he said.

Rehn added that fiscal discipline will be crucial to reinforce confidence in Europe's public finances and emphasised his determination to fully use the 'six-pack' from day one.