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Jan 21, 2020

MNB governor calls for reform of the eurozone and a “rethink” of the Maastricht criteria

György Matolcsy has called on members of the European community to start a dialogue on reforming the eurozone.

The governor of Hungary's Central Bank (MNB) has called for a reform of the eurozone and a "rethink" of the Maastricht criteria.

Addressing the Bank's Annual Lamfalussy Lectures event focusing on sustainable convergence, György Matolcsy called on members of the European community to start a dialogue on reforming the eurozone.

According to MTI, the governor said Hungary has been on the path of sustainable convergence since 2013, with economic growth at an average of 3.8 percent, 2 percentage points above the eurozone average. He added that GDP per capita is at 73 percent of the EU average and public debt is expected to drop below 60 percent of GDP by 2022.

Matolcsy noted that besides positive changes, Hungary needs new reforms to address competitiveness and this would also require dialogue with international partners. Twenty years after the introduction of the euro, some basic conditions have still not been fulfilled, and a new dialogue is needed on ways to reform the eurozone, he added.

The governor said the 13th anniversary of the Maastricht Treaty in 2022 will provide an excellent opportunity to address the subject. They had the first ten years of being successful in the eurozone, but since the global financial crisis, numerous problems and unresolved issues have developed.

Photo credit: novekedes.hu