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Hungary Faces 7% Deficit Forecast Amid Stalled EU Funding

Prime Minister Peter Magyar issued a stark warning on Monday, projecting that Hungary’s budget deficit could climb past 7% of economic output by 2026. This fiscal outlook persists even as the government anticipates the release of billions of euros in frozen funding previously negotiated with the European Union.

Hungary Faces 7% Deficit Forecast Amid Stalled EU Funding

The government is struggling to contain expenditures while navigating a complex relationship with Brussels to unlock critical capital. While officials remain optimistic about securing EU support, the scale of the projected deficit underscores deep-seated instability in the nation’s public finances. Investors and analysts are now closely watching how Budapest intends to bridge this widening gap without triggering further economic volatility.

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