Matolcsy Advocates Euro Adoption Only After 2030

Analysis

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Hungary should not consider adopting the euro before 2030 as joining the single currency before its economy is duly prepared would backfire, central bank governor György Matolcsy said last week, according to news wire Reuters.

Matolcsy said once Hungary reaches about 90% of the EU's average level in terms of economic development, adopting the single currency could be put on the agenda.

"It is dangerous to enter the club of the rich while the economy is unprepared for it," Matolcsy told Kossuth Rádió.

"Perhaps around 2030 or a bit later we could reach [...] 90% of the EU's average in terms of development, then it's worth entering [the euro zone] as the euro has many advantages," Matolcsy said.

Until then, it is worth using the extraordinary room for maneuver that having a national currency allows the Hungarian central bank to boost the economy, he added.

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