National Bank of Hungary official urges equal treatment for member states outside of eurozone

The National Bank of Hungary supports closer cooperation between eurozone states, be it in the banking sector or capital markets, but care must be taken to ensure equitable conditions for member states that adopt the common currency later, the central bank’s managing director said at a roundtable talk in Paris late on Thursday.

The NBH basically backs any proposal that contributes to the renewal of the European Union, that strengthens the economy, improves financial stability and the sustainability of state debt, Dániel Palotai said. However, when these proposals — most of which concern a closer cooperation within the eurozone — are evaluated, the interests of member states outside of the eurozone must be considered: the principles of equal treatment and a level playing field must be respected, he added.

Any new proposal must also refrain from reducing cohesion funding, Palotai said.

Palotai noted the marked impact of government policy on Hungary’s economy since 2010, but said the continuation and deepening of structural reforms is still necessary.

“We trust that the government, which has once again been given a strong mandate, will continue structural reforms with new impetus,” he added.

Hungary’s economic policy has proven it is effective, and sharing its experience could contribute to a more successful vision for the future of the EU which is at a crossroads because of Brexit and pressure from fast developing countries in Asia, Palotai said.

The roundtable talk was organised by the HEC Paris international business school and the Dumakavics Klub, a club of Hungarian business professionals living in France.

Source: MTI