BLBG:Hungary to Stay Out of Euro During Currency ‘War,’ Matolcsy Says
Hungary should stay out of the euro area for the time being, because it isn’t yet strong enough to join and because the European currency is waging a “war” with the dollar without adequate defenses, Economy Minister Gyorgy Matolcsy said.
The euro area lacks a common political leadership and a shared bond market and member-countries’ development levels are too different for stability to be possible, Matolcsy wrote in a book review for Heti Valasz, a weekly newspaper.
While it’s in Hungary’s interest for the euro to survive, a political union encroaching on its independence isn’t desirable, Matolcsy said, adding that “we will wait with currency union.”
To contact the reporter on this story: Andras Gergely in Budapest at agergely@bloomberg.net
To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net
