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European Commission questions viability of Hungarian government's medium-term economic forecast under EDP procedure

The European Commission has raised concerns about the viability of Hungary's medium-term economic forecast as part of the Excessive Deficit Procedure (EDP). The Commission's assessment, detailed in a report, suggests that Hungary's projections for economic growth, inflation, and fiscal adjustments might be overly optimistic. Specifically, the Commission doubts the government's ability to meet its deficit targets, citing potential risks from high inflation, energy price volatility, and the broader economic environment. The critique comes at a time when Hungary is under pressure to reduce its budget deficit, which has been exacerbated by various economic challenges including the aftermath of the global health crisis and geopolitical tensions. The Commission's scrutiny is part of a broader effort to ensure member states adhere to the EU's fiscal rules, particularly in light of the economic recovery efforts post-COVID-19.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/politics/government/european-commission-questions-viability-of-hungarian-government-s-medium-term-economic-forecast-under-edp-procedure/ar-AA1vw4Jj ]