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Matolcsy outlines 2020s challenges

National Bank of Hungary (MNB) governor György Matolcsy said preserving political stability, implementing a feasible strategy for convergence, and maintaining fiscal discipline are among the challenges Hungary faces this decade, state news wire MTI reports, citing a piece published in Novekedes.hu on Monday.

Image by Jessica Fejos

He said that the preservation of social cooperation and the maintenance of political stability is the "first and most important" challenge to be met.

The second is constructing a convergence model sustainable in the long term, he said.

He noted that Hungary has no "clear picture of the future" and proposed setting the goal of achieving Austriaʼs level of economic development and quality of life by 2030.

"This may not happen by 2030, but a clear timetable must be followed in the coming 20-25 years: lacking this, we face the historical risk of never fully implementing convergence," he added.

To achieve convergence, he proposed a "revolution of competitiveness" and a strategy that is "clear, deployable, achievable and flexible".

The third challenge Matolcsy said is resisting the "temptation" to give up the proven recipe of "balance and growth".

"Hungary has financial resources, from the [European Union], through the programs of the MNB, from the banking system, and from the savings of households and businesses that are unmatched in the countryʼs economic history. Deficit and state debt [targets] may be let go temporarily, but they must be returned to after 2022," he said.