The European Commission today gave Hungary until September come up with new plans to cut its ballooning budget deficit, saying it would not make further fiscal demands before general elections in April or May.
The Commission criticised existing Hungary's "convergence programme" - a roadmap for joining the euro zone by Budapest's target of 2010 - saying it lacked details.
EU Monetary Affairs Commissioner Joaquin Almunia said he was not planning further recommendations to Hungary on how it should cut its budget deficit before the elections.
Under the previous schedule, such recommendations were due to be made in January. "I'm not planning to adopt new recommendations before the elections," Mr Almunia told a news conference to present the Commission's assessment of several EU countries' budgets.
Hungary has missed targets to cut its budget deficit in each of the four years of the current Socialist-led administration, making it the worst fiscal performer among the 10 countries that joined the EU in 2004.
The Commission's report said Hungary was not on course to meet a target of cutting its budget deficit to below the EU ceiling of 3 per cent of gross domestic product in 2008. Hungary must bring the deficit below the cap by then if it is to reach its goal of adopting the euro in 2010.
"The Commission invites the Council (EU governments) to ask Hungary to present, by September 1st, a revised update of its convergence programme, which should identify concrete and structural measures," the Commission said in a statement.
Final decisions on Hungary's progress towards the euro zone rest with EU finance ministers. They are expected to discuss the country's situation on January 24th.