Hungary should give up its plans to join the Eurozone, and work on strengthening its own economy for the next twenty years, according to its Economics Minister Gyorgy Matolcsy. Writing in a Hungarian weekly, he warns Europe will be mired in its own difficulties in the coming years as a result of trying to achieve too much, too quickly.
While the country is struggling to come up with new sources of financing, and has re-opened bail out talks with the IMF, the country actually managed to achieve a balanced budget in 2011 and will be just 2.5% of GDP in the red for 2012, according to current projections. Earlier this week, the central bank cut interest rates by 25 bps, a move economists worry could prove dangerous to the country’s fiscal stability.
