Hungary has convinced the European Union that it’s serious about its deficit cutting plans. The result is that the EU has lifted what amounted to financial sanctions, in the form of nearly €500m in funding the country was counting on beginning in 2013. Those sanctions, imposed back in March, have now been rescinded, giving the country some extra breathing room as it tries to bring its fiscal house back in order. The EU now believes Hungary’s deficit will be 2.7 percent of GDP, below its 3 percent limit.
