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Finance Minister Mihály Varga, nominated to lead the Hungarian National Bank (MNB) from March 2025, emphasized his priorities during a hearing before Parliament’s Economic Committee. According to Magyar Nemzet, he highlighted the MNB’s critical role in ensuring economic stability and pledged to focus on transparency, price stability, and innovation.
Mihály Varga assessed Hungary’s economic position as stable, citing a current account surplus of EUR 2B and a zero primary budget balance, which reflects fiscal consolidation. However, he acknowledged the public debt-to-GDP ratio of 73.6% is high compared to regional peers and requires improvement. On Euro adoption, the Finance Minister stated that Hungary remains committed to the euro, but its introduction depends on economic readiness.
Hungarian economic policy should focus on creating the conditions for euro adoption,” he said, noting that joining ERM II could reduce financial risks.
The final decision, he stressed, involves both the government and the central bank.
The politician underlined the independence of the MNB, guaranteed by law and EU regulations, while highlighting the importance of cooperation. He clarified that such cooperation does not compromise the central bank’s autonomy. Avoiding public disputes, he emphasized:
I do not want to send messages through the press if there is a difference of opinion between the National Bank and the government.”
Maintaining price stability is Mr. Varga’s foremost goal as the President of the MNB. He reaffirmed his commitment to achieving a 3% inflation target, stating: “I myself am committed to maintaining the 3% inflation target. High inflation weakens confidence in the economy, while monetary deflation acts as a tax on the poor.” He also stressed the importance of exchange rate stability, describing a predictable forint as key to sustainable economic growth.
On transparency and innovation, the minister promised clear, understandable decisions from the central bank. Addressing cryptocurrencies, he expressed cautious skepticism.
I think cryptocurrencies are risky,” he stated, while acknowledging their regulated spread under EU rules.
He added that the MNB has a role in supporting financial innovation and exploring a digital forint, noting: “We cannot close our eyes to the possibility of creating digital central bank money, but cash usage must be ensured.”
Varga pledged to prioritize classic central bank tasks, reduce non-core activities, and ensure management discipline at the MNB. He reaffirmed his commitment to price stability, financial transparency, and a predictable economic environment, positioning the central bank as a pillar of Hungary’s long-term economic growth.
Via Magyar Nemzet, MTI; Featured Image: Facebook / Varga Mihály