In a statement issued last week, the Hungarian National Bank (MNB) said Hungary should not join the Euro-zone until its per capita GDP reaches 90 per cent of the European average and before it pushes down public debt below 50 per cent of GDP. A prominent Hungarian business analyst argues, however, that the new criteria outlined by the issuing bank are two severe.
In his analysis of those five preconditions on economic news portal portfolio.hu, István Madár welcomes the National Bank’s statement as a long overdue opportunity for a public debate over how and when Hungary should join the Euro-zone. Nevertheless, he fears that those conditions are not to be met in the foreseeable future. “It’s as though we have given up on joining the Eurozone for good”, the economist noted.
István Madár sees the introduction of the Euro as a means rather than as an outcome of convergence. If the Euro were a hindrance in countries with per capita GDP values below 90 per cent of the average, he explains, 10 out of the 19 Euro-zone member countries should never have joined. Moreover, Madár adds, their membership hasn’t prevented any of them from propping up their performance.
via budapost.eu and portfolio.hu