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The newly appointed Economy Minister, Mihály Varga, has declared that in spite of being targeted with an Excessive Deficit Procedure by the EU, Hungary can continue to pursue the same economic policy.

Varga was appointed to replace György Matolcsy, who left to take on the role of President of the Hungarian National Bank (MNB) on March 1. Previously a minister without a portfolio, he was delegated to conduct negotiations, which failed to produce results, on a possible IMF aid plan. Known for his “unorthodox” economic policies, Matolcsy may force the MNB to buy government bonds on secondary markets, or draw on the national bank’s reserves to reduce the public spending deficit.