Hungarian government finalizes, approves euro convergence plan

Hungary's government finalized and approved its plan for adopting the euro, which it will submit to the European Commission today, government spokeswoman Emese Danks said. „The government has accepted the plan and is still discussing details of the health reform,” Danks said in a telephone interview yesterday, declining to give further details. The government will further detail its euro-entry plan at a press conference on Friday at the conclusion of its two-day session in Balatonöszöd, western Hungary. The council of European Union finance ministers, known as Ecofin, will discuss the commission's position on the plan at a meeting Oct. 10, Finance Minister János Veres said in parliament Aug. 30, adding Hungary has a good chance the program will be accepted. Hungary will refrain from setting an official target date to adopt the EU's currency in the plan. It abandoned plans to switch to the euro in 2010 last month after admitting it will fail to trim the deficit enough to meet euro-entry rules. Hungary plans to cut its budget deficit to 3.2% of gross domestic product by 2009 from 10.1% this year. (Bloomberg)