“There’s a need for a drastic restructuring of the budget. It seems to me that the government has realized that they need to reduce the total expenditure,” Jarai said.
The former central bank governor said it was not among the duties of the Fiscal Council to assess the government’s economic policy. The council’s job is to examine whether the fiscal plans are credible and can be implemented. The latter also involves assessing whether the budget path is sustainable, he added.
The government’s measures carried out so far have been “steps taken in the right direction,” Jarai said.
”The positive measures haven’t been acknowledged by financial markets because, in the meantime, steps were taken that went against predictability,” he added.
Commenting on Hungary’s outlooks for eurozone accession, Jarai said it was too early to set an adoption target date.
”Hungary’s small and open economy is perhaps the most integrated with the EU’s economy, even more than Ireland and Belgium. There’s no other choice for Hungary than the euro,” he added.