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Hungary needs long-term fiscal discipline to adopt euro, says central bank deputy

Hungary needs a disciplined fiscal policy in the long term to join the eurozone, but the country must also do more than just meet the nominal requirements, National Bank of Hungary deputy governor Júlia Király told a conference in Vienna.

“We hope there will be a long-term disciplined fiscal policy in Hungary,” Király said. “Then the country can move closer to eurozone accession.”

Staying out of the eurozone for a long period of time is “not worth it”, but achieving the nominal conditions are not enough for accession, there are other requirements too, she said. The second most-important requirement is anchoring inflationary expectations, she added.

“Since we introduced inflation targeting in Hungary almost ten years ago, we have not once managed to maintain the target,” Király said.

The MNB's number one priority after the crisis from the point of view of monetary policy is price stability, she said. (MTI – Econews)