Thursday, June 3, 2010

Hungary Warns on Deficit while EC Hopes for Faster Deficit Cutting

The crisis is focused today on Hungary.

The European Commission on Thursday urged Hungary to cut its budget deficit faster. The problem with this is that Hungarian government officials have reiterated that the 2010 fiscal gap may reach almost twice the target agreed with lenders including the EU.

The only solutions are bankruptcy, i.e.sovereign debt restructuring, for the countries that are in financial trouble, or restructuring via inflation.

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