The other key vulnerability, the high level of public debt has already been addressed to some extent through a significant fiscal adjustment process that took place in the last couple of years; this year Hungary will register a cyclically adjusted primary balance of around +1.4 per cent of GDP.
However to ensure robust and continuous debt reduction, tight and credible fiscal consolidation needed with focus on lasting structural reforms on the expenditure side. It is important to point out, that fiscal adjustment in and of itself will not necessarily do the trick.