Eurogroup President Kyriakos Pierrakakis said Hungary’s new government had signalled a commitment to closer economic integration with the European Union during talks in Budapest with Prime Minister Magyar and Finance Minister Kármán.
Pierrakakis said the meeting covered the European and global economy, as well as issues including competitiveness, energy security, deeper integration of financial markets and investment needs for Europe’s long-term prosperity, the Eurogroup reported on Friday.
He said he welcomed Hungary’s ambition to deepen its economic and monetary integration with Europe, including its stated commitment to meeting the conditions for adopting the euro in future.
Pierrakakis stated that joining the euro followed a rules-based process linked to “convergence criteria” — economic requirements that countries must meet before entering the euro area — and encouraged Hungary to pursue “prudent policies and institutional reforms”.
He also referred to Bulgaria and Croatia as recent examples of countries joining the single currency, and described the euro as the world’s second most important currency after the US dollar.
Recovery funds and reform milestones
Hungary’s government has made the “unfreezing” of EU Recovery and Resilience Facility funds a political priority, and has submitted its national recovery and resilience plan, which is due to go before the Council on 10 July for approval, Pierrakakis said.
He linked progress on the plan to reforms identified as key milestones, including measures aimed at strengthening the rule of law, and said the EU welcomed steps described as strengthening anti-corruption rules, improving transparency in the management of public resources and procurement, and increasing the involvement of social partners and stakeholders in the legislative process.
Pierrakakis said he supported Hungary’s efforts to meet the agreed milestones so that full payments from the Recovery and Resilience Facility could take place once all conditions were met, and added that the Eurogroup “stands ready to accompany” Hungary and other candidate member states on the path towards the euro.
