Central Banking

Hungary's Jarai warns deficit moving wrong way

Hungarian central bank governor Zsigmond Jarai warned in an interview on Monday 10 October that the country's budget deficit is moving in the wrong direction for euro membership.

In an interview with national daily Nepszabadsag reported by the MTI-Econews agency, the governor said a tightening in the budget for 2006 could maintain a chance of euro membership by the government's own 2010 target but he added: 'If we progress like this we will never introduce the euro'.

He said the central bank ex