Bloomberg News

Hungary to Cut 6,369 Public Sector Jobs to Meet Deficit Goal

January 12, 2012

Jan. 12 (Bloomberg) -- Hungary plans to cut 6,369 public sector jobs, mostly at ministries, to meet this year’s budget deficit target, according to Prime Minister Viktor Orban’s directive published in the Official Gazette.

The Ministry of Public Administration and Justice will alone fire 2,826 employees, according to the directive sent by e-mail today.

Hungary may face the suspension of so-called European Union cohesion funds from next year if the country fails to correct its budget policies, Economic and Monetary Affairs Commissioner Olli Rehn told reporters in Brussels yesterday. Hungary’s budget sustainability underwent a “severe deterioration” last year, which was masked by one-time measures, as the Cabinet failed to take “effective action” to rein in the budget deficit in a “sustainable” way.

To contact the editor responsible for this story: Zoltan Simon at zsimon@bloomberg.net


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