Gyurcsány says Hungary's euro plan "fast and tight"
Friday, July 21, 2006, 12:13
The way to adopting the euro must be “fast and tight,” and is one of the highest priorities of this government's four-year term, the prime minister said during the first meeting of the Convergence Council, which will advise the government in drafting the euro plan. “The path leading back to balance is correction itself. In order to have the ability to stay on this path some wide range social, political and economical changes are necessary. For the goal, the aim to be healthy and maintainable, a smart misture of correction, development, and intensive improvement would be needed.” Gyurcsány is struggling to control the European Union's highest budget deficit compared with the size of the economy. He has until Sept. 1 to submit his euro-adoption plan after the EU rejected the previous version in January. The new plan must be based on conservative forecasts to ensure credibility, Gyurcsány said. The government will aim to meet all adoption criteria at the same time and minimize adverse effects on growth, he added. The council includes György Surányi, a former central bank president, András Simor, head of the local Deloitte Touche Zrt’s Tohmatsu unit, and Erik Bogsch, the chief executive of Gedeon Richter Nyrt. Joining to the members and the PM, there were some invited guests, like István Hamecz, director of Hungarian National Bank (MNB) who is one of the government's fiercest critics; finance minister János Veres; and Tibor Draskovics and Gordon Bajnai ministers. After the PM made his speech, the council continued its work behind closed doors. (Bloomberg, MTI)