BUSINESS

EU says Hungary has taken 'no effective action' to contain deficit, threatens measures

01/11/2012 06:38 EST | Updated 03/12/2012 05:12 EDT
BRUSSELS - The European Commission says that Hungary has taken "no effective action" to contain its deficit within sustainable levels and is threatining the EU member with sanctions.

EU Monetary Affairs Commissioner Olli Rehn said Wednesday that Hungary only remained within the 3 per cent of economic output target last year because of one-time measures and expected the same would happen this year.

He also said Belgium, Cyprus, Malta and Poland had taken effective measures to keep their budgets within line.