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Hungary and the Eurozone –the Need for a More Systemic Approach

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Hungary and the Eurozone – the Need for a More Systemic Approach1 OLIVÉR KOVÁCS

ICEG European Centre, Budapest, Hungary ABSTRACT

This contribution purports to illustrate why a more systemic approach is needed when it comes to considering the Eurozone accession in case of Hungary. The paper first dwells on the issue of macroeconomic instability in case of Hungary from a regional perspective by devoting attention to its

‘lagging behind’ phenomena which call our attention to the necessity of a more holistic approach in supporting the Hungarian Eurozone accession. Then it emphasises that the challenges we are facing today imply that the role of governance and the quality of state are heavily appreciating; and we argue that Eurozone accession needs good governance which incorporates the issue of public-sector innovation in a more dedicated way in tackling old and new challenges in supporting sustained growth and development as prerequisites of Eurozone accession as well.

KEY WORDS: Hungary, Eurozone, Central and Eastern Europe, ICEG European Centre

1This research was supported by the European Union and the State of Hungary, co-financed by the European Social Fund in the framework of TÁMOP-4.2.4.A/ 2-11/1-2012-0001 ‘National Excellence Program.

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