The Czech government approved the Finance Ministry’s proposal to increase the state deficit to CZK300bn (EUR10.9bn), up from the previously estimated CZK100bn (EUR3.6bn). This is already the worst budgetary performance since the creation of independent Czech Republic.
Most countries of Western Europe used various types of austerity programs aimed at reducing the budget deficit in order to get out of economic trouble. Professor Alberto Alesina, an economist from Harvard University, examined which of these measures worked best.
Unorthodox economic policy is a term used not only by columnists to describe Hungarian government. Also the PM Victor Orbán uses it to describe his approach to the economy with out of the box solutions.
The Stability and Growth Pact says the EU countries have to maintain a fiscal deficit no higher than 3 per cent of the GDP and reduce their public debt below 60 per cent of the GDP. All the countries have decreased the fiscal deficit, but not the level of debt.
Standard and Poor’s has raised its long and short-term foreign and local currency sovereign credit ratings for Hungary to BBB-/A-3 from BB+/B, putting the country back in the investment grade, Hungarian news agency MTI reported.