Hungarians want euro, the government does not: spontaneous euroisation happens
The Hungarian forint is one of the most vulnerable national currencies in the world, which is very sensitive to the changes in the global and regional economy. Though the Hungarian central bank could baulk a spontaneous euroisation last year-end, the majority of Hungarians would like to introduce the euro to replace the weakening forint. But is that possible, and would it be beneficial for the people?
According to portfolio.hu, the government has not been communicating about the euro introduction even though Hungary has been an EU member for 20 years, and even Romania wants to adopt the euro by 2026. Croatia introduced it this year, while Slovakia and Slovenia (and the Hungarian communities living there) have been using the common European currency for years. As a result, hundreds of thousands of Hungarians receive their salaries and pay their bills in euros in the neighbouring countries. More than 1 million will soon join them from Romania in 2026. But Hungarians living in the motherland seems to remain using the forint.
The forint has been introduced in 1946, and contrary to other nations, Hungarians love it. That is probably because the new currency was based on the people’s work. There was no help from abroad because the Communist block refused to accept the USA’s Marshall Aid.
Spontaneous euroisation in multiple segments of the Hungarian economy
Portfolio argues that the Hungarian government and economic policymakers try to belittle the advantages of introducing the euro. Meanwhile, a spontaneous euroisation is already happening in the Hungarian economy. Business owners and companies calculate in euros. Furthermore, many households put their savings in the EU’s common currency.
The Hungarian people are “europositive”. In 2022, based on a survey carried out by the Eurobarometer, 69 percent of the respondents supported the introduction of the euro. That rate is 77 percent in Romania. Meanwhile, Bulgarians, Czechs, and Swedes are much more sceptical. The figure is below 50 percent in those countries.
Hungarians believe that, provided they used the euro, the inflation would not be EU champion in Hungary. Thanks to the protective measures of the central bank last October-December, the euro introduction due to the historic forint-weakening of 2022 was postponed. But many think they need a less vulnerable currency.
Furthermore, it seems the central bank will loosen the strict monetary policy it has been following since last October. And that may trigger a new wave of forint weakening. The Hungarian government sticks to the idea that Hungary should not use the euro until it reaches at least 90 percent of the EU’s development level. However, that may never happen, portfolio.hu argues.
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10 Comments
Why don’t we look at Croatia’s experience? Prices went up considerably because unscrupulous vendors (pretty much all of them) used a very favorable (to them, of course!) exchange rate AND rounded up the prices. Be careful what you wish for. There are plenty of E.E.A. member states who are doing just fine with their old, historic national currencies instead of this artificial creation that makes no sense and is little more than a tool for the Franco-German axis to keep the other countries to heel.
Initially – it would be a massive re-adjustment, just zoning in on the millions of Hungarians, especially those in the lower socio economic category of our population.
Day to day cost of living – would not be DECREASED, in fact, history tells us, that basic living costs rise, when country’s have converted to FULL Euro currency.
Hungary – as this article RIGHTLY reports, our currency is a fluctuating NIGHTMARE.
It has NO under – belly.
Reason and present times we live is the MASSIVE vulnerability of our Economy, and the Political arena, to be a DEMOCRACY or a Dictatorship, which, the zenith, as to where it will end, because of the PULVERIZATION it is taking, that’s the un-known.
The key Financial and Economic indicators to access the position and future performance of a country, these indicators continue in the case of Hungary – in a STRONG downward TREND.
Hungary – through its defacing by the Orban led Government, the destruction in relationships, just not the European Union & NATO – Great Britain & Ireland, the United States of America but SMASHED our image Globally with country’s that are Governed under DEMOCRACY.
Hungary – through Orban – doesn’t ATTRACT nor Inspire – give CONFIDENCE to country’s to INVEST in our country – Hungary.
The if’s and but’s with a relationship with Hungary – SCARY.
The forint is Deceased not helped by the Political ideas and philosophy, that Victor Orban, of his own blessing and his Government, the roads of destruction, wrongful paths, as a country we have been set on.
It would be deeper immediate Humongous PAIN for Hungarians – if we went Euro.
Inflation – and we are NOT getting the HONEST disclosure as it is at this point in time in Hungary communicated out of the Orban Government, because simply it remains out of control in Hungary.
Hungary – if we sooner than later went direct to Euro – it WOULD feed Inflation – blow it through the roof.
The SOFTER option would be that we RUN a Unison Currency maintaining the forint, but conducting the monetary affairs in Hungary – of choose – in the use of forint or euro.
This option may LIGHTEN the PULVERIZATION of Hungary, and slow down, it won’t be the FIXER – but the direction under which factually – Victor Orban – he has taken us – as we accelerate to-wards this DEEPENING black Hole of the un-known, won’t call it an Abyss just yet, maybe sooner than later, witnessing, seeing before our very own eyes – the Cataclysmic Capitulation of our country – Hungary.
Croatia has benefited a lot from being in Euro and most hungarian people can see this. You just need look a bit more deeper than some dubious shops rounding up prices up at your local market. And don´t believe in conspiracy theories like “Euro makes no sense / its s Franco-German axis tool etc,”. Read up multiple reliable sources and you´ll find out that with Euro currency Croatia is more attractive for investments, international competitiveness is boosted, interests rates and transaction costs reduced, economic resilience has increased and of course its a big benefit for the tourism sector. Economic growth and more stable financial situation with Euro contribute to better standards of living and inflation rate decreases. In short term you see those rounded up prices for potatoes at some of your local markets but in the long term Euro is beneficial especially for those EU countries whose economy is behind the EU average, like Croatia (and Hungary). And Euro currency was already a major player in Croatia before the official adoption as it was much more stable and secure currency than Croatian Kuna. Croatians who were saving money for something bigger, rather saved in Euros than in Kunas. Same happening in Hungary, better keep bigger savings in Euros – who knows what will happen to Forint.
Exactly what Michael Steiner said in the first comment.
Whoever thinks that Euro will solve the issues needs to excercise its reasoning a little bit more.
Compare Slovakia and Czech. Which one has Euro? Which one is standing better?
Euro would not only lead to be the poorest in the Euro zone, but also a nice slave of Germany. You want Euro? Move to a country with Euro. Applying it here would increase the prices even more.
PONDER this Question.
Hungary continues – across the board – in a DESTABLIZED place.
The immediate to short term BIG picture of Hungary, that opinions GROW – respected opinions expressing that the situation in Hungary is that “dire” – that as a country they near INSOLVENT.
WHAT is the best currency for Hungary to have a FUTURE ???
Before YOU answer – look at Hungary now – the Financial & Economic picture that it will drastically WORSEN.
The currency YOU think is our SAVER – remember it MUST also achieve STABILITY of our Financial & Economic picture – and as a COUNTRY.
Do with kick with the Red team or stay in the colour BLUE?
Do we leave the EU or what about if we are asked to SURRENDER our Membership?
Only those with Cranial impairment – think we can STAND Alone – we don’t NEED support & Help nor RELATIONSHIPS with country’s governed under DEMOCRACY.
Your answer – what currency MAY or MAY not give Hope for our FUTURE.
The first thing to be considered is whether Hungary will stay in the EU. Actually, how many people want the euro? When euro is introduced, financial control of the country is ceded.
Once the euro is a fact the people will have even less to spend. The first countries forced into the euro were tricked. All those promises about the benefits were lies.
Croatia decided the people are suffering and we all know it will be the end of the euro soon (same as the dollar).
What the EU/WEF wants is total control so a digital currency with restrictions on what you can spend it with.
Bezint eer je begint want met de Euro zal alles veel duurder worden en de inflatie zal niet dalen zeker niet wanneer het om de voedselprijzen gaat!! Deze blijven maar stijgen !! Dat Hongarije zijn boeren maar blijft koesteren want in mijn land België worden ze vanwege het stikstof debat door de groene partijen verjaagd met het mes op de keel!!Dit zal de voedselvoorziening in het gedrang brengen en ons afhankelijk maken van andere landen!!
The Euro a better currency? Consider 2 points: the euro lost 60% of its value to the CHF, and ECB, EU Commission and governments spent 5 trillion, or 5000 billion, for pandemic relief measures, under data protection of course. Money lent from our grandchildren. We do not know who received all that money.
And worse, the ECB is about to replace cash by CBDC, all our money under direct control of a giga burocracy. If we want to stay free, we have to stay away from Orwells nightmare.
Learn about bitcoin, don’t use a currency that another person can print at will (thus making you poorer)