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Next stop, eurozone? Tisza Party economy expert explains how and when
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Hungary could meet the necessary conditions to adopt the euro within the next few years, according to András Kármán, economic expert of the Tisza Party.
Tisza Party’s economist speaks out on big plans
Speaking to RTL, Kármán outlined an ambitious plan that would see the groundwork laid by 2030, potentially allowing a formal decision on joining the eurozone soon after.
However, he stressed that the timeline is not yet a firm commitment. Before setting an official target date, a future Tisza-led government would first need to assess the country’s financial position and hold consultations with key stakeholders.
These are the requirements to adopt the euro
Kármán emphasised that the primary goal is to ensure Hungary meets all necessary economic criteria before committing to euro adoption. These include price stability, sustainable public finances, controlled inflation, and a stable exchange rate.
While 2030 is seen as a realistic milestone, he noted that favourable economic developments could accelerate the process. Some economists suggest that, with sufficient political will and public support, Hungary could adopt the euro within five to seven years.
Kármán also revealed that he had discussed the issue with central bank governor Mihály Varga, agreeing that setting a clear euro adoption goal could help reduce interest rates, stabilise inflation expectations, and create a more predictable currency environment.
In case you missed it: Hungary’s new Tisza government inherits massive deficit after Orbán, EU funds become key.
Still, many changes needed
A key part of the Tisza Party’s economic strategy involves gradually removing state-imposed price caps. Kármán argued that such interventions are not compatible with a well-functioning market economy in the long term.
That said, the transition would be carefully managed to avoid placing additional burdens on households. The current price margin caps on food and household goods, originally set to expire at the end of May, are expected to be extended temporarily.
Despite the optimistic outlook and numerous plans schemed, Hungary currently does not meet the Maastricht criteria required for euro adoption. Public debt is rising, the budget deficit remains high, and inflation exceeds acceptable levels compared to the EU’s lowest-inflation member states.
Have you heard? “I thought we would win” – Orbán rejects corruption claims and signals the rebuild of Fidesz party after defeat.
So this is where Fidesz left us:
Hungary currently does not meet any of the four quantitative Maastricht criteria in a sustainable manner.
We are stuck on persistent inflation – frequently among the highest in the EU, fluctuations too high for Eurozone entry.
Then, sound public finances … The government deficit limit is 3 percent of GDP. Also government debt – the limit is 60 percent of GDP, and our debt-to-GDP ratio currently hovers above 70 percent. Thank you Politicians for leaving this mess! Mention the deficit is now 5 percent, thanks to a boost in pre-election spend?
We also have issues when it comes to exchange rate stability. The HUF is known for being all over the shop … Formal requitement is to join the Exchange Rate Mechanism (ERM II) for at least two years without our traditional ups and downs against the Euro.
Do not get me started on long-term interest rates … https://tradingeconomics.com/hungary/government-bond-yield – I will let the numbers do the talking.
We are such a long way off, people!
‘We are stuck on persistent inflation – frequently among the highest in the EU, fluctuations too high for Eurozone entry.’
Whose finances, Dear Norbert, are in good shape in The West?
Do you notice how the ‘system’ works in such a way that everyone is always ‘a long way off?’
Meeting Maastricht criteria, to give up an aspect of your sovereignty, will not change that.
‘We are stuck on persistent inflation – frequently among the highest in the EU, fluctuations too high for Eurozone entry.’
Whose finances, Dear Norbert, are in good shape in The West?
Do you notice how the ‘system’ works in such a way that everyone is always ‘a long way off?’
Meeting Maastricht criteria, to give up an aspect of your sovereignty, will not change that.
With these projections, Our Beautiful Sovergn nation, will have the begging bowl out to the Troika, our people reduced to digital peasants our farms and agricultue industry turned to dust. I don’t think our young voters even know what the Troika is or will care as they will be to traumatised listening to transvestites school teachers read the male version of cinderella as part of the twisted set education system in our schools by then I hope I am 100% wrong and Hungary and it’s indigenous people thrive and prosperity even more. But beware in the wolf in the EU sheep’s clothes….
Yes, Dear Kalman, few, if any, Hungarians, that voted for Magyar and Tisza, comprehend that they not only chose to sweep Orbán and Tisza away, for the time being, they also began the process of sweeping up their sovereignty.
Voluntarily giving up your own currency is incredibly dumb, especially when it will be replaced by the currency of a anti-democratic and megalomaniacal entity, such as Bruxelles.
That said, I do not see the EU surviving, because too many Europeans despise it ü so, in some ways, Hungary is leaping onto a sinking boat.