GS sees Hungary joining eurozone by 2013
All of the Central European EU members - including Hungary - could join the eurozone by 2013, according to investment bank Goldman Sachs.
In an evaluation of Hungary's prospects, Goldman Sachs London-based analysts said Hungary is in no position right now to decide on a date to join the ERM-2, the “waiting room” for the euro because of political instability in the country. However, if the minority government or a new coalition can successfully push through the 2009 budget with the 3.2%-of-GDP general government deficit target, and if inflation continues to slow, Hungary could join the ERM-2 sometime in 2009. Even if ongoing political troubles lead to early elections coming around in spring 2009, ERM-2 membership is still possible in the second-half of the year or in early 2010, which would open the way to euro introduction in 2013.
The analysts noted that joining the ERM-2 could give Hungary's government - whose popularity has suffered the effects of austerity measures to rein in the country's budget deficit - a boost before the next general elections, to be called in the spring of 2010 at the latest.
“An ERM-2 membership would be a way to show that the sacrifices were not all in vain,” the analysts said. (MTI – Econews)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.