Budapest, 13 November 2026 – “Due to the transformation of the global economy, Central and Eastern Europe needs cooperation between central banks to support mutual economic convergence,” according to MNB Governor Mihály Varga, speaking at the conference jointly organised by the MNB and the Polish central bank. Governor Varga highlighted that it was necessary to boost productivity, foster innovation and focus on higher-value-added economic activity in order to preserve the region’s competitiveness.
Varga pointed out that geopolitical realignment, technological progress and intensifying global competition posed fundamental challenges to Europe’s economy. The transformation of energy supply relations and international economic fragmentation were particularly sensitive topics for Central and Eastern Europe, as its growth in recent decades was particularly reliant on foreign working capital and technology transfers. He highlighted that the region’s economic convergence was one of the major success stories of the past decades. In the past ten years, Hungary and Poland had moved 7 and 12 percentage points closer to the European Union’s average level of development, respectively. However, with inflows of foreign capital slowing down and labour costs rising, the region’s previous growth model had to be renewed. Governor Varga underlined that strengthening Hungary’s competitive corporate sector and supporting education, research and development, as well as technological innovation, could serve as the basis for sustainable convergence going forward. The spread of artificial intelligence, demographic changes and the energy transition all required new adaptive skills. He added that stronger cooperation between CEE countries could strengthen the region’s ability to compete for international investments. Governor Varga underlined that central banks played a decisive role in ensuring the requirements for economic adjustment. Maintaining price stability and recognising economic risks in a timely manner helped foster a predictable environment for investments and innovation. Varga stressed that consequently, in an environment characterised by persistent geopolitical uncertainty and inflationary pressures, it was now more important than ever before for central banks to fulfil their primary objectives.
Magyar Nemzeti Bank