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Hungary's eurozone entry date to be reviewed: incoming finance minister



The date for Hungary's hoped-for entry into the eurozone in 2008 is to be reviewed, Tibor Draskovics, the cabinet chief set to become finance minister next month, said Thursday.

Draskovics indicated he would tighten budget policy.

"In responding to the demand of the prime minister (Peter Medgyessy), I am going to review the agenda of our integration into the eurozone," said Draskovics, who succeeds ousted Finance Minister Csaba Laszlo.

Laszlo on Wednesday resigned under pressure from Megyessy following the announcement of a higher-than-forecast public deficit that further complicates the plan by Hungary, which joins the European Union in May, to adopt the euro in 2008.

Laszlo will leave his post on February 15, to be replaced by Draskovics.

Laszlo resigned after reporting that Hungary's public deficit for 2003 had reached 5.6 percent of gross domestic product, sharply higher than a previous forecast of 5.2 percent of GDP.

Under eurozone membership rules, public deficits must be limited to a ceiling of 3.0 percent of GDP. A candidate country needs to achieve this target at least two years before joining the eurozone.

08 January 2004, 12:05 CET
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