Finance Minister Mihaly Varga – Photo: MTI

Varga: EU finance ministers agree supportive fiscal policy still needed

European Union finance ministers agree that supportive fiscal policy is still necessary for the economic recovery, Finance Minister Mihaly Varga said after an informal ECOFIN meeting in Brdo, Slovenia.

In a statement released by his ministry, Varga said the finance ministers concurred that a hasty withdrawal of fiscal support – as happened after the 2008 crisis – could hold back the growth of Europe’s economies and even lead to another crisis.

The ministers endorsed Hungary’s position that economic policy should focus on boosting investments, creating jobs and replacing output lost during the crisis with quality, competitive capacities, he said.

The ministers also discussed how member states can make a return to balanced fiscal policy without impairing growth, he added.

“The stand of the Hungarian government has been clear from the start: first the economy must be protected, then it must be re-started, and afterwards a gradual return to reducing the budget deficit can be made,” he said.

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