Even Romania is ahead of Hungary in adopting the euro
Romania’s government wants to adopt the euro by 2026. That is a much earlier date than the current plan to join the euro area in 2029 would allow. This means that even Romania will most likely have the common European currency before Hungary does.
Romania is ahead of Hungary
The Romanian government would enter the euro “antechamber” in 2026, Adrian Câciu announced, according to Euractiv. The Romanian Finance Minister added that the implementation would require the full execution of the National Recovery and Resilience Plan.
The source of this is the one-off EU fund. The non-repayable part of this fund will not be paid to Hungary until the government has met 27 “super milestones”, Telex reports. According to Adrian Câciu, they “maintain” that the “horizon” for joining the eurozone is 2029. However, if the recovery fund is fully used by 2026, Romania could start entering the “antechamber” of the eurozone.
Vakmajom, a Facebook page concerned mainly with politics, analysed the effects the introduction of the euro had on Croatia. In their post, they write that Croatia has one of the lowest inflations in the region. What is more, And when it comes to public debt, the Croatian state pays the lowest interest rates when borrowing for 10 years.
The annual interest rate on 10-year government bonds is 3.9 percent in Croatia. Meanwhile, it is 8.8 percent in Hungary. The post concludes: “Thus, joining the euro has been good for Croatia and for taxpayers. The euro is spreading unstoppably because it has far more advantages than disadvantages. For taxpayers.”
Why is adoption of the euro portrayed as a positive and desirable thing? Aside from the fact that it destroys yet another, high-profile mark of national sovereignty, it would also deprive Hungary of having any control over its monetary and even fiscal policy. That’s never good.
The whole euro project consists of basically throwing disparate economies into a cauldron and hoping for the best. We saw how that worked out with Spain, Portugal, Italy, and, worst of all, Greece. I hope Hungary doesn’t become a victim of this ridiculous folly…
Not to worry, Hungary will not likely meet the requirements for the Euro before OV takes the country out of the EU. Bye, bye baby bye, bye. So happy that we’ll finally make it out of this club.
When we joined the European Union, we signed up to introducing the Euro at some point. There are obviously criteria to meet (we’re not good at achieving criteria), however we have no opt out, no nothing.
@MichelSteiner – spot the odd on out: Spain – 3.3%, Portugal – 3.15%, Italy – Greece – 4.2% Hungary 8.7%. Our 10 year bond rate (and remember we need to borrow A LOT) is still Europe’s highest by a large margin (we lead Romania by almost 1.5%). This should scare anyone, because this will impact generations to come:
Aren’t we doing Sovereignly fantastic?
Michael Steiner, exactly! The Euro is foremost a political project. It will not survive.