Success of Eurozone Accession More Important Than Timing

National Bank of Hungary (MNB) governor Mihály Varga acknowledged the benefits of adopting the euro, but said ensuring the country was prepared to make the common currency its own was more important than a date for joining the eurozone, addressing an event organized by the Hungarian Civic Cooperation Association.

Mihály Varga told the event that adopting the euro was not, in itself, a solution to economic challenges, which is why a "successful" rather than a "rapid" eurozone accession should be the goal, the MNB said in a statement on Saturday.

Ensuring the prosperity of society continues to increase and sustainable economic convergence is maintained are the most important economic strategy goals, he said.

Mihály Varga estimated that eliminating exchange rate risk could save businesses HUF 130 billion a year.

At the same time, the president of the MNB drew attention to the need to weigh the risks alongside the positive effects. He explained that with the introduction of the euro, Hungary would lose its independent monetary policy, which would mean the end of an interest rate policy tailored to Hungarian economic conditions. Furthermore, he pointed out that a common monetary policy is not necessarily capable of adequately addressing economic shocks that affect individual member states differently.