BIS Review 139/2008  1  The first is entering the eurozone without sufficient progress in structural reforms; the second is the problems caused by potentially large capital inflows after the common currency is introduced. It is a commonly shared view that efficient labour and product markets, which help a country’s dynamic adjustment to asymmetric shocks, are essential for success within a monetary union.
In terms of labour and product market reforms Hungary still has a lot to do. Although nominal and real wages are more flexible than in the core eurozone, the employment rate is one of the lowest in the EU.