The euro in its current form benefited strong and competitive economies but did not strengthen emerging economies, Hungarian Prime Minister Viktor Orbán said, according to bne IntelliNews.
Speaking at the tenth Lamfalussy Conference in Budapest on 27 January, Orbán quoted central banker Sandor Lamfalussy, known as the “father of the euro.” The latter argued that the introduction of the euro without proper preparation could harm the country’s economy.
If we are not ready, the euro will kill our economy.
Orbán pointed to the weaker economic performance of the eurozone compared to the US since the introduction of the euro. Since 2000, GDP in the United States has grown by about 170 per cent compared to 140 per cent growth in the eurozone.
European Central Bank (ECB) President Christine Lagarde virtually joined the conference. She recognised the Hungarian-Belgian economist’s key role as the first president of the European Monetary Institute and a key architect of the ECB and the euro.
Lagarde warned that central bank independence was increasingly under threat. Political interference in central banking led to higher market and macroeconomic volatility, higher bond yields as well as greater risk premiums, exacerbated by geopolitical tensions.
Although Hungary is legally obliged to join the eurozone under the EU accession agreement, the government has repeatedly postponed the process, citing economic sovereignty, financial stability and readiness concerns.
