This will be a short note because the news broke only three minutes ago and was reported by Index. We know only the following details. The original plan was to hold a press conference on Monday, by which time an agreement had to be reached between the Hungarian government and the members of the delegation of the IMF and the EU. However, the delegation is heading home today. As they announced, at the moment the differences are so great between the two sides that they cannot be bridged. The IMF, however, is willing to resume negotiations at a later date and is therefore giving the Hungarian government more time to mull things over and to provide more details about its financial plans.
The IMF sent the communique to Index, but the Hungarian govenment has said nothing yet. We know little about the details at the moment, but Index suspects on the basis of the IMF communique that the measures taken by the Hungarian government are not sufficient even to maintain the 3.8% deficit this year, much less the 3% next year. "Consolidation demands long-term measures which the authorities need more time to work out." In my interpretation, that means that the IMF is demanding structural reforms which the Fidesz government wants to avoid because of their political risks. Although it is not clear where Index's information is coming from, it seems to know that the EU's objections are even more specific. Apparently they complained that the steps taken to avoid immediate dangers "are not sufficient and only temporary in nature."
I will keep you posted if anything more comes up.