The factor that can best facilitate economic convergence is not membership in the euro-zone but an economic policy which prioritizes competitiveness, Minister for National Economy Mihály Varga said in Sofia, Bulgaria, at an informal ECOFIN session.

At the meeting, which had been called to discuss ways to boost convergence, Mihály Varga stressed that although the introduction of the euro was a major economic policy step but it was not in itself sufficient enough for convergence. Therefore, debates on the future of the Economic and Monetary Union (EMU) must not focus only on the introduction of the euro in the case of member states which are currently outside of the bloc, he added. Member states should therefore be allowed to have sufficient manouvering room for structural reforms which drive productivity and employment growth, promote investment and the introduction of modern technologies, he noted.

The Government of Hungary believes that the EU’s cohesion policy has proven that the EU as a whole is capable of narrowing the economic gap which exists between various regions. Accordingly, maintaining cohesion funds is a priority for Hungary, and the Government is working to get the largest possible amount allocated for Hungary in the coming programming period, he emphasised.

Because besides a pro-growth economic policy which places competitiveness growth in the foreground, the eastern part of Europe requires a strong cohesion policy if it wants to close the economic gap with the west, Mihály Varga stated.

(Ministry for National Economy)