Hungary aims to join the eurozone by 2030

Hungary could meet the economic criteria for adopting the euro by 2030, although the authorities in Budapest do not rule out an earlier timetable. The statement was made on Thursday by Mihály Varga, governor of the Central Bank of Hungary, at a meeting of economists.

Varga said that the success of the transition to the single currency depends on public support, the preparation of the real economy and the existence of a clear strategy. According to him, approximately 80% of Hungarians currently support introducing the euro, although the population remains cautious about the decision’s effects.

Adopting the European currency would, however, require stricter fiscal discipline. Hungary is facing slow economic growth, demographic challenges, high debt, increased financing costs and inflationary pressures. The public debt criterion, which should not exceed 60% of GDP, is considered the most difficult to meet.

Before joining the euro area, Hungary must improve its fiscal position and enter ERM II, the mandatory exchange-rate stabilisation mechanism. The country does not yet have an official date for adopting the euro and does not meet all the European convergence criteria. Unlike Denmark, Hungary does not benefit from an opt-out clause and is legally committed to adopting the single currency.