Hungary faces loss of aid for breaking EU budget rules

From guardian.co.uk

The European commission has flexed its new fiscal surveillance muscles by proposing to suspend almost €500m (£421m) in structural aid to Hungary for persistently breaching budget deficit rules. This is the first time the European commission has proposed to suspend development funds – designed to support the EU's poorer regions – from one of its members over an excessive deficit. Olli Rehn, EU economic and monetary affairs commissioner, said: "Today's decision has to be regarded as a incentive to correct a deviation (from fiscal prudence) and not as a punishment." Rehn is drawing up plans to dispatch scores of ... (full story)