Time to reform the euro in 2022, Hungary central bank chief says

The upcoming 30th anniversary of the Maastricht Treaty in 2022 would be a good occasion to reform the euro area, but this will require a dialogue, Hungary central bank chief György Matolcsy said on Monday at the National Bank of Hungary's (MNB) Lámfalussy Lectures conference. It is important that member states outside the euro area also have a voice in this discussion, he added.
Összeomlottak az eurózónás hozamok, földbe döngölték az eurót az EKB döntés után

sIn economic convergence, the biggest challenges are geopolitics, new technologies and the new financial system, and there is also the megatrend that is climate change, Matolcsy said at the conference on Monday.

According to Matolcsy, Hungary has been on a sustainable convergence path since 2013, with its average 3.8% annual growth more than 2 percentage points above the euro area's average. GDP per capita is currently 73% of the EU average and is closing the gap. The third important pillar of convergence is that Hungary's debt could drop below 60% of GDP by 2022, the MNB president said.

Twenty years after the euro's introduction, some basic conditions have still not been met, and there is a need for a new dialogue on how to reform the euro area, Matolcsy said, adding that the upcoming 30th anniversary of the Maastricht Treaty in 2022 would be a good occasion for reforms.

In theory, all member states undertook at the time of accession to eventually introduce the euro. However, we were not present in Maastricht in 1992 and were not involved in setting the criteria,

Matolcsy stated.

Peter Praet, former Belgian member of the European Central Bank's board and the recipient of this year's Lámfalussy award, concurred that urgent reforms were necessary. Imbalances were already present in the first decade of the euro area but the signs have been ignored, he added.

It is important to set deadlines on these reforms. It is not enough to say we will eventually finalise the banking union, we need deadlines.

Praet said.

More in Economy

February 21, 2020 17:20

Inflation was nowhere more devastating in Europe than in Hungary

Hungary is European Champion but cheers are scarce

February 21, 2020 15:17

Japanese credit rating agency upgrades Hungary's ratings

JCRA has been holding a positive outlook on Hungary since 2017

February 21, 2020 10:56

World's second largest bank comes to Hungary

China Construction Bank opens local branch

influenza járvány vírus betegség maszk
February 21, 2020 09:25

Flu still in full swing Hungary

37,000 new cases last week

vonat vasutas mozdonyvezető
February 21, 2020 08:48

Hungarian trade unions call for wage hikes

This time in public services

February 20, 2020 09:56

Tesco Hungary to hike wages in two stages

Plans to spend HUF 3.8 billion on wage increase