Hungary needs new euro criteria, says MNB deputy gov

MNB

jessica fejos

Fulfilling the Maastricht criteria is not enough, as Hungary needs new, more relevant criteria to join the euro area and become a strong and stable eurozone member, National Bank of Hungary (MNB) Deputy Governor Márton Nagy said on Wednesday in Poland, state news wire MTI reported.

Such criteria should include the convergence of the real economy, wage levels and the financial sector more closely with the euro area, said Nagy. Business and financial cycles should have a correlation above 70%, and companies, the workforce and the product split should be competitive, he added.

The financial system of Hungary should be developed, stable and competitive while the appropriate fiscal and macroprudential tools should be available, said the deputy governor.

Mentioning specific details, Nagy said per capita GDP at purchasing power parity should reach 90% of the eurozone average, and SMEsʼ productivity should be 50% of the productivity of big companies, while the jobless rate should be 4% and the activity rate 65%.

The long-term structural deficit should be near 0% while the government debt to GDP ratio should be below 50%, he added.

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