‘Genuine’ convergence key for Hungary’s euro adoption

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jessica fejos

Hungaryʼs level of economic development needs to move close to that of eurozone countries before it can consider adopting the common currency, András Tállai, state secretary at the Ministry for National Economy who also heads the tax office NAV, said Friday.

"The introduction of the euro may only become a timely matter if Hungaryʼs level of economic development approaches the average of eurozone countries; that is, if there is genuine convergence. Otherwise, Hungary could be the loser of accession [to the eurozone]- similar to some Mediterranean countries," Tállai wrote in a written response to independent MP Márta Demeter, posted on the website of Parliament on Friday on behalf of Minister for National Economy Mihály Varga.

"For the time being, Hungary does not wish to enter the European Exchange Rate Mechanism," he said, referring to the "waiting room" EU members enter before adopting the euro.

He noted that Hungary meets all of the Maastricht criteria for adopting the euro, with a single exception.

Tállai added that the eurozone "must be renewed, stabilized and its earlier attraction restored, in light of the difficulties and internal problems which have surfaced in the past years."

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