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Brussels chides Hungary for significant errors in its fiscal plans

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Brussels chides Hungary for significant errors in its fiscal plans

Budapest appears to be dragging its feet over submitting a realistic picture of Hungary’s economic outlook, according to a European Commission letter seen by Euronews – the latest potential quarrel in a pattern of worsening relations with Brussels.

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Hungary’s fiscal plans are missing significant information and based on unreliable data, European Commissioner Valdis Dombrovskis has said in a letter to Finance Minister Mihály Varga, dated Thursday (5 December) and seen by Euronews.

Budapest appears to be dragging its feet in submitting realistic economic forecasts to Brussels – part of a growing pattern of confrontation between the two.  

“At this stage, there are still important elements missing, or requiring further adjustment and specification, for the Commission to finalise its assessment” of Hungary’s medium-term fiscal plan, said Dombrovskis, who is European Commissioner for the Economy.

The Commission also highlights issues with data on economic growth, inflation and interest expenditure, saying that deviations from the Commission’s own methodology need to be “duly justified”.

The analysis is supposed to set out how Viktor Orbán’s government plans to return to fiscal balance over the coming few years, after strict EU spending rules were relaxed amid the covid pandemic and the ensuing energy crisis.

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But the EU executive’s full assessment “may take some time … given the breadth of the missing information” – possibly stretching the deadline from the current 12 December into the middle of January next year, the letter said.

Fines for breaches

The EU Treaty limits the debt its member states can incur – and in principle breaches can lead to fines, even if such tough measures are rarely if ever imposed.  

The bloc’s Stability and Growth Pact aims to avoid economic turmoil in the eurozone, as seen in Greece following the global financial crisis of 2007-8 – but the rules also apply, albeit less strictly, to those such as Hungary who don’t share the currency.

Under the EU’s ‘Maastricht criteria’ outstanding government debt should not exceed 60% of annual economic output, or GDP, and the budget deficit should be no more than 3%.

These budget strictures were largely suspended during the government splurges of the pandemic and the energy crisis surrounding Russia’s invasion of Ukraine, but they are back in force as of this year. 

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Hungary was apparently late submitting its fiscal plans, meaning it couldn’t be assessed in late November alongside most other EU member states. 

In light of domestic political issues, the Commission had given five other EU members extra time to submit their deficit proposals. Among them are Germany, which has called a snap poll for February, and Belgium, which is still attempting to form a governing coalition after June federal elections. 

Just one of the remaining 21 countries was given a fail grade for its fiscal plans in November. The Commission chastised the Netherlands, traditionally a fiscal hawk, for a deficit predicted to rise  from 0.2% this year to 2.4% in 2026, due in part to income tax cuts and a rise in public investment.

Toxic impact

Conforming with Brussels’ demands can have a toxic impact on domestic politics. The government of French prime minister Michel Barnier fell this week after lawmakers refused to support his seven-year plan to bring down France’s deficit, which at 6.2% is the highest in the eurozone. 

Hungary is also approaching the end of a complicated six months in which it has chaired discussions among member states in the EU Council.

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Budapest has repeatedly vetoed sanctions and other measures taken against Russia in response to the Ukraine invasion, and has refused to implement EU court judgements on asylum rights, leading Brussels to suspend lucrative EU funds.

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DOJ Officials May Have Tried to Sway 2020 Election for Trump, Watchdog Says

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DOJ Officials May Have Tried to Sway 2020 Election for Trump, Watchdog Says
By Brad Heath and Sarah N. Lynch WASHINGTON (Reuters) – Three senior U.S. Justice Department officials committed misconduct in the final months of Donald Trump’s first presidency by leaking details about a non-public investigation, a move that may have been intended to sway the 2020 election, the …
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Trump reinforces 'all hell will break out' if hostages not returned by inauguration

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Trump reinforces 'all hell will break out' if hostages not returned by inauguration

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President-elect Trump reiterated that “all hell will break out” if the hostages still held in Gaza have not been freed by the time he enters office in two weeks on Jan. 20. 

Trump was asked about the threats he first levied in early December at the Hamas terrorist organization that has continued to hold some 96 hostages, only 50 of whom are still assessed to be alive, including three Americans. 

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“All hell will break out,” Trump said, speaking alongside Steve Witkoff, special envoy to the Middle East and who has begun participating in cease-fire negotiations alongside the Biden administration and leaders from Egypt, Qatar, Israel and Hamas. 

(Seven American hostages are being held in Gaza. From left, Edan Alexander, Sagui Dekel-Chen, Keith Siegel, Omer Neutra, Judi Weinstein Haggai, Gadi Haggai and Itay Chen, of whom three are still believed to be alive.)

PARDONS, ISRAEL, DOMESTIC TERRORISM AND MORE: BIDEN’S PLANS FOR FINAL DAYS OF PRESIDENCY

“If those hostages aren’t back – I don’t want to hurt your negotiation – if they’re not back by the time I get into office, all hell will break out in the Middle East,” he added in reference to Witkoff.

Trump again refused to detail what this would mean for Hamas and the Trump transition team has not detailed for Fox News Digital what sort of action the president-elect might take. 

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In response to a reporter who pressed him on his meaning, Trump said, “Do I have to define it for you?”

“I don’t have to say any more, but that’s what it is,” he added. 

Trump speaking

President-elect Trump makes remarks at Mar-a-Lago in Palm Beach, Florida, Jan. 7, 2025. (Reuters/Carlos Barria)

ISRAELI PM OFFICE DENIES REPORTS THAT HAMAS FORWARDED LIST OF HOSTAGES TO RELEASE IN EVENT OF DEAL

Witkoff said he would be heading to the Middle East either Tuesday night or Wednesday to continue cease-fire negotiations. 

In the weeks leading up to the Christmas and Hanukkah holidays, there was a renewed sense of optimism that a cease-fire could finally be on the horizon after a series of talks over the prior 14 months had not only failed to bring the hostages home, but saw a mounting number of hostages killed in captivity. Once again, though, no deal was pushed through before the New Year. 

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After nearly 460 days since the hostages were first taken in Gaza in the aftermath of the Oct. 7, 2023, attacks, Witkoff appeared to be holding onto hope that a deal could be secured in the near future. 

Steve Witkoff

Steve Witkoff, speaks during a campaign event for former President Trump at Madison Square Garden in New York, on Oct. 27, 2024. (Adam Gray/Bloomberg via Getty Images)

“I think that we’ve had some really great progress. And I’m really hopeful that by the inaugural, we’ll have some good things to announce on behalf of the president,” Witkoff told reporters. “I actually believe that we’re working in tandem in a really good way. But it’s the president – his reputation, the things that he has said that are driving this negotiation and so, hopefully, it’ll all work out and we’ll save some lives.”

In addition to the roughly 50 people believed to be alive and in Hamas captivity, the terrorist group is believed to be holding at least 38 who were taken hostage and then killed while in captivity, as well as at least seven who are believed to have been killed on Oct. 7, 2023, and then taken into Gaza.

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Former Cambodian opposition MP shot dead in Bangkok ‘assassination’

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Former Cambodian opposition MP shot dead in Bangkok ‘assassination’

Lim Kimya, 74, had refused to flee Cambodia even after former PM Hun Sen threatened to make opposition MPs lives ‘hell’.

Lim Kimya, a former member of Cambodia’s National Assembly with the now-exiled opposition Cambodia National Rescue Party (CNRP), has been shot in Thailand’s capital, Bangkok, in an attack labelled an “assassination” by former colleagues.

According to The Bangkok Post newspaper, 74-year-old Lim Kimya was shot dead soon after he arrived in the Thai capital on a bus from Siem Reap, Cambodia, on Tuesday evening with his French wife and Cambodian uncle.

The CNRP confirmed the death in a statement, saying it was “shocked and deeply saddened by the news of the brutal and inhumane shooting” of Lim Kimya, who had served as the CNRP’s member of parliament for Kampong Thom province.

The former opposition MP, a dual Cambodian and French national, had reportedly continued to live in Cambodia, even as many other former opposition politicians fled, seeking political exile elsewhere in the face of threats from the governing Cambodian People’s Party (CPP) under then-Prime Minister Hun Sen.

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The once hugely popular CNRP was dissolved in Cambodia and all its political activities banned by Cambodia’s Supreme Court in 2017. The party still exists as an organisation in Cambodian diaspora communities in Australia, the United States and elsewhere. In a statement shared on social media, the CNRP described Lim Kimya’s killing as an “assassination”.

“The CNRP strongly condemns this barbaric act, which is a serious threat to political freedom”, the statement said, adding that the political party is “closely following the murder case and calls on the Thai authorities to conduct a thorough and impartial investigation”.

Thailand’s Metropolitan Police Bureau is searching for a gunman who fled the scene on a motorbike, The Bangkok Post reported.

Human rights groups have called on authorities in Thailand to conduct a swift and thorough investigation.

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Human Rights Watch’s Asia Director Elaine Pearson said the “cold-blooded killing” sent a message to Cambodian political activists that “no one is safe, even if they have left Cambodia”.

Phil Robertson, director of the Asia Human Rights and Labour Advocates (AHRLA), said the killing had “all the hallmarks of a political assassination”.

“The direct impact will be to severely intimidate the hundreds of Cambodian political opposition figures, NGO activists, and human rights defenders who have already fled to Thailand to escape PM Hun Manet’s campaign of political repression in Cambodia,” Robertson said in a post on social media.

Hun Sen’s son Hun Manet became the country’s new leader by replacing his father as prime minister in August 2023.

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Hun Sen calls for crackdown on Victory Day

Lim Kimya’s killing fell on January 7, the anniversary known as Victory Day for the governing CPP, which marks the date that Vietnamese troops, supported by a small contingent of Cambodian soldiers, entered Phnom Penh and toppled Pol Pot’s Khmer Rouge regime in 1979.

Since then, the country has remained under the iron-fisted rule of Hun Sen and now his son, Hun Manet, with little room for political opposition.

At a ceremony on Tuesday to mark the anniversary, Hun Sen called for a new law to brand people who wanted to overthrow his son’s government as “terrorists… who must be brought to justice”.

While there has been little effective political opposition to the CPP since 1979, that almost changed in 2013, the year that Lim Kimya was elected as an opposition member of Cambodia’s parliament following a general election in which the governing party was almost defeated by the CNRP.

The opposition had tapped into a groundswell of popular support for political change after decades of hardline rule by Hun Sen.

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While the CNRP was once considered the sole viable opponent to the CPP and a potential election winner, it was dissolved by Cambodia’s politically-aligned judicial system in 2017.

Many opposition leaders and supporters have since fled into exile amid a wave of arrests and Hun Sen, promising to make their lives “hell”.

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