This paper attempts to contribute to a better understanding of why a more systemic approach is needed when it comes to Hungary's eurozone accession. This study first dwells on the issue of its macroeconomic instability from a regional perspective by devoting attention to its "lagging" phenomenon, which requires a more holistic approach in supporting Hungary's eurozone accession process. Then it broadens the research canvas by emphasising that the challenges Hungary is facing today imply that the role of governance and the quality of the state are heavily appreciating. It argues that a prerequisite of eurozone accession is governance that is engaged in fostering public sector innovation in addressing old and new challenges with supporting sustained growth and development.
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