Hungary to fight way out of economic "danger zone"

Hungary will stick to its deficit target of 3 per Cent this year despite being pushed into a "very dangerous situation" in the past three months by the eurozone crisis, Prime Minister Viktor Orban said on Monday, according to dpa. Addressing a meeting of Hungary's diplomatic corps in the capital Budapest, Orban warned that the country is facing a battle for its sovereignty and must avoid the path taken by near-bankrupt Greece, the state news agency MTI reported. "The decisions which define Greece's future are no longer made by Greece itself, and Hungary must avoid this path at all costs," Orban said. The prime minister promised further economic measures and warned that autumn will be a period of difficulty in Hungarian public life and society at large such as has not been seen for a "long time." In stark contrast to Greece, after several years of austerity Hungary's budget deficit is among the lowest in the European Union. However, at close to 80 per cent of GDP its national debt remains the highest among the bloc's newer eastern members. Orban's centre-right government, which won a landslide victory last year partly on the back of a pledge to end austerity, has committed itself to reducing that figure to below 60 per cent in the coming years. Until it does, Hungary will remain in the "danger zone," Prime Minister Orban said.