“Only a partial agreement was arrived at concerning the establishment of a eurozone budget”, Minister of Finance Mihály Varga declared following a session of the Eurogroup.
The Minister highlighted that further negotiations are necessary on the source of financing and on allocation criteria. “It is a top priority for Hungary that the new budget cannot draw funds away from countries that do not yet use the euro and cannot endanger the financing of other budgetary goals, with particular regard to cohesion policy” he explained.
“At last December’s Euro Summit, the heads of state and government decided on the fact that a separate budget must be drawn up for the eurozone as part of the European Union’s seven-year multiannual financial framework, which would facilitate the competitiveness of member states that use the euro”, Mr. Varga reminded the press.
At the session of the Eurogroup, which lasted until the small hours of this morning, several open questions remained concerning the document that summarises the operational framework of the eurozone budget and includes the common standpoint developed during the course of the negotiations so far. The size of the eurozone budget will be decided with the unanimous approval of all EU member states as part of the European Union’s seven-year multiannual financial framework, it remains uncertain, however, whether a supplementary financing pillar will also be established that operates on an intergovernmental basis. Another point of dispute is how relative development levels and demographic data will be taken into account. Mr. Varga highlighted the fact that from Hungary’s perspective, the draft text drawn up for next week’s meeting of EU heads of state and government provides a suitable basis for further work.
At the meeting, it was also decided that work relating to the full establishment of a banking union, and within that of a Uniform Deposit Insurance Scheme, will continue.