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Canada Goose sale BUDAPEST/BRUSSELS, March 13 (Reuters) The European Union prepared to freeze half a billion euros in aid to Hungary on Tuesday, for the first time punishing a member state for flouting budget rules Canada Goose sale

canada goose clearance Hungary was trying to block the move, a diplomat said, as a report from the OECD group of developed nations predicted the country of 10 million would slide into buy canada goose jacket cheap recession this year. canada goose clearance

A decision to hold back 495 million euros in EU cohesion funds raises the stakes canada goose uk outlet in Prime Minister Viktor Orban struggle to secure funding from Brussels and the International Monetary Fund that he needs to canada goose coats stabilise the economy and prop up the ailing forint currency.

canadian goose jacket The EU cheap Canada Goose charges that some of Orban policies clash with its rules. canadian goose jacket

Canada Goose Parka understanding is that canada goose store the suspension decision is cheap canada goose uk going to go ahead, said one diplomat close to the talks. Canada Goose Parka

buy canada goose jacket is seeking support to block the suspension but it would probably need the backing of all of Eastern Europe, and that is something it is not going to get. buy canada goose jacket

Although 23 of the EU 27 states have exceeded the bloc deficit ceiling of 3 percent of gross domestic product, Hungary is the first to face Canada Goose Jackets the freezing of development funds aimed at helping canada goose uk shop it catch up with richer EU members.

canada goose deals The Commission has struggled to impose the limit since 2003, when Germany and canada goose clearance sale France both missed budget deficit targets and rejected being Canada Goose sale disciplined. canada goose deals

Analysts canada goose coats on sale say Tuesday move is aimed at canada goose uk black friday making an example out of Budapest after Orban ignored warnings from Brussels and used his two thirds majority in Canada Goose Outlet parliament to pass Europe highest banking tax, a new central bank law, and other policies criticised as ineffective and potentially undemocratic.

canada goose black friday sale But some diplomats said a more uniform approach was Canada Goose online needed. canada goose black friday sale

canada goose would have preferred to give Hungary some time to fall into line, Austrian Finance Minister Maria Fekter said in Brussels. must treat all states in the same way. canada goose

canada goose coats on sale EU officials say Hungary deficit could hit 3.6 Canada Goose Coats On Sale percent of GDP in 2013 if Budapest does not take new measures. Orban has argued the dispute is technical issue and that Hungary will not lose canada goose black friday sale any funds next year. canada goose coats on sale

GRIM OUTLOOK The Organisation for Economic Cooperation and Development agreed more fiscal consolidation was needed, particularly in cutting the government spending that makes up 50 percent of output. Canada Goose Parka It painted a grim picture for Hungary economy.

buy canada goose jacket cheap the economy is projected to be in recession in early 2012, with a weak recovery starting in the second half of the year as confidence improves somewhat and global financial and economic conditions improve, it said. buy canada goose jacket cheap

The grouping of more than 30 industrialised countries, predicted a contraction of 0.6 percent this year and growth of 1.1 percent in 2013. Budapest sees 0.5 percent growth canada goose factory sale in 2012.

canada goose store The OECD said the only way to return to growth would be to pursue structural reforms, reduce the high level of foreign currency debt burdening its households, among other moves. canada goose store

Canada Goose Outlet It also urged Orban to close a funding uk canada goose outlet deal with the EU and the International Monetary Fund as soon as possible. Canada Goose Outlet

reaching canada goose an agreement with multilateral organisations for new financial assistance canadian goose jacket is a key first step to help restore investor confidence, stabilise the exchange rate and relieve some pressure on households, who are heavily buy canada goose jacket indebted in foreign currency, it said.

cheap Canada Goose The government has said it could clinch a funding deal in the second quarter, but Budapest is still contending some conditions the EU executive has set for talks to start. cheap Canada Goose

Ratings agency Moody said the suspension of cohesion funds and Budapest del ay in securing an IMF deal were pressur ing the country credit rating, which is rated the level of Ba1. It said it could stabilise its ratings outlook if Hungary were to embark on sustainable Canada Goose Online budget reforms.

canada goose coats The delay in the talks has hammered the forint, which has fallen 22 percent since mid 2008 to 294 per euro on Tuesday. canada goose coats

canada goose clearance sale That has caused a spike in loan payments for households who borrowed in the lower interest rates of canada goose clearance the euro and Swiss franc before uk canada goose the crisis. canada goose clearance sale

Canada Goose online The OECD said an end 2011 drop in the forint had rendered useless an effective nationalisation of $14 billion in private pension assets last year. Orban used the funds to pay back debt, but the weaker forint pushed the debt value back up Canada Goose online.