Hungary releases euro plan

Hungarian Prime Minister Ferenc Gyurcsany presented the country’s euro convergence plan. The figures are slightly worse than in the leaked version, giving a more realistic account, analysts say.

Hungary’s euro plan presents a more conservative forecast of the country’s economic situation (see also ). Some analysts indicate that this might be a move by the government to regain the confidence of investors, as investment in Hungary has decreased significantly in the second quarter of 2006.

According to the plan, gross public debt will rise to 71.5% of GDP in 2007, 72.7% in 2008 and drop to 70.8% in 2009. Budget deficit will amount to 10.1% of GDP in 2006, falling to 3.2 in 2009. The inflation rate is expected to be 6.1% in 2007.

The euro convergence plan is to be submitted to the Commission by 1 September. The Hungarian Prime Minister expects his country to join the euro by 2011/2012.

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