Hungarian Prime Minister Gordon Bajnai tolds reporters today that it would be unacceptable to the International Monetary Fund, the European Union, and international investors if Hungary were to miss its revised budget deficit target of 3.9 per cent this year, dpa reported. "Confidence in our country is very fragile, and with every step we must affirm that Hungary is on the road to stability, reliability, and, in the medium term, adoption of the euro currency," Bajnai said. The prime minister, speaking in Budapest at a joint press conference with visiting EU Commissioner for Regional Policy Danuta Hubner, was reacting to a call from the opposition to ease Hungary's 2009 budget deficit target to make room for further tax cuts. The centre-right opposition party Fidesz had argued the previous day that cutting taxes is the only way out of Hungary's economic crisis. Fidesz officials said they did not see why Hungary must aim for a deficit smaller than the forecast average for the EU this year. Reducing its budget deficit by reining in public spending was one of the conditions that came with a 25-billion-dollar bail-out package Hungary received from the IMF, EU and the World Bank in October. In the face of a deeper-than-expected recession, with the national economy expected to shrink by almost 7 per cent this year, the IMF agreed last month to relax Hungary's original deficit 2009 target from 2.9 per cent to 3.9 per cent of gross domestic product.
