Gyurcsány questions price of Euro adoption
Monday, October 3, 2005, 14:13
Hungary has no reason to replace its national currency if this prevents the government from reaching its social goals, Prime Minister Ferenc Gyurcsány said at a meeting of the Hungarian Socialist Party (MSZP) on Saturday. The aim of introducing the euro would be to lower Hungary's risk, but confidence in the forint is already very strong, Gyurcsány said. There is no need to get rid of the currency and give up Hungary's monetary independence if it results in scrapping motorway construction projects, a lack of co-financing, or shelving the government's five-year pension programme. Gyurcsány announced on Friday that the government will raise monthly payments to 2.6 mln pensioners in eight steps over the next five years, of which next year's raise would amount to Ft 51,000. The measure will cost the government an additional Ft 132 billion.