"I am encouraged by the corrective measures undertaken by the Hungarian authorities to try and reach the budget deficit target in 2005. Sound finances are key for the Hungarian economy and citizens," said Joaquin Almunia, European commissioner for economic and monetary affairs. In particular, the EC praised the freezing of "a set of expenditures" and the limiting of the use of spending appropriations carried over from previous years. The EC also concluded, however, that "the budgetary situation in Hungary remains vulnerable," concluding that "the correction of the excessive deficit in 2005 demands effective implementation of all the measures envisaged and of additional action ... should further expenditure overruns appear later in the year." Regarding 2006, the EC added that "important adjustments and decisive action, including the adoption of a prudent budget deficit for 2006, will be needed to achieve the deficit target of 2.9% of GDP for that year." Hungary must bring the budget deficit to below 3% by 2008 to enable it to adopt the single currency by 2010.