The exchange rate is exclusively in the Central Bank's scope of authority and government should keep away from openly discussing this issue, Prime Minister Viktor Orbán said on Friday. He addressed a conference named after Alexandre Lámfalussy, a Belgian banker originally from Hungary, who helped bring about the creation of the euro.
Prime Minister Orbán said the 2014 budget will not be an election-year budget and reiterated that the deficit will be kept below 3 percent of GDP. He added that the budget balance shows that Hungary's economy is very stable. If Hungary can continue its current economic policy after the elections, then the country will see a great era of prosperity and development, Prime Minister Orbán promised. Even though the effects of the crisis can still be felt, "on the whole we need not deal with crisis management anymore" but can instead prepare for the era of prosperity, he added.
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Central Europe can become the engine of growth for the European economic area in the upcoming period, but in order to achieve this it must maintain strong links with the German economy, the Prime Minister emphasised. With regard to joining the Eurozone, he stated that Hungary's real-economic conditions must draw closer to those within the Eurozone countries before the adoption of the single European currency can be considered.
Prime Minister Orbán also pointed out that the European Union should adopt a new strategy aimed at increasing competitiveness. The introduction of such a strategy is contingent upon establishment of financial stability within the eurozone and recognition of the freedom of non-euro zone European Union member states to formulate their own economic policies, he added. The Hungarian Prime Minister said that the EU integration of Balkan countries, concluding a free-trade agreement between the EU and the United States, placing the relations between EU member states and Russia upon new foundations and energy prices that can compete with those in the US are also necessary in order to adopt such a strategy.
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At the event, Governor of the Hungarian Central Bank György Matolcsy announced that the winner of the newly established prize named after Alexandre Lámfalussy was Ewald Nowotny, Governor of the Austrian Central Bank, for his outstanding work in the field of economics and finances, significantly affecting Hungarian and international monetary policy. Mr. Nowotny emphasised in his acceptance speech the importance of the Maastricht criteria in stabilising non-Eurozone member states and declared that the central banks of Hungary and Austria have a close relationship.
(Prime Minister’s Office)
