There is now an exact date of when Hungary could adopt the euro if the country successfully meets the necessary economic and legal requirements, according to a potential timetable outlined by Zoltán Kurali, Deputy Governor of the Hungarian National Bank (Magyar Nemzeti Bank, MNB).
A possible pathway to the euro area
Speaking at Portfolio’s Back to Europe conference, Kurali said Hungary could join the ERM II exchange-rate mechanism in 2029, with a final decision on euro adoption expected in 2031. The process could begin as early as this autumn, when the government is expected to present its medium-term macroeconomic plan. If the plan proves credible and successful, Kurali said there would be no reason to delay negotiations on joining ERM II.
Legal harmonisation could begin in 2027, while a 2028 convergence report would assess whether Hungary is meeting key requirements, including targets for inflation, public finances and debt. ERM II membership is normally required for at least two years before adopting the euro, although countries often remain in the mechanism for longer.
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Lower inflation target could help
The MNB recently lowered its inflation target from 3% to 2.5%, effective from 2028. Kurali said the change could help Hungary meet the inflation criterion required for euro adoption, which can officially happen on 1 January, 2032.
He also noted that some benefits could emerge before the common currency is actually introduced. A credible plan to meet the necessary conditions could reduce government bond yields as investors gain confidence in Hungary’s economic trajectory.
More on Hungary’s economy: Forint gets a boost from falling oil and a softer dollar
Risks still remain
However, joining the euro area would also involve significant trade-offs. Hungary would surrender part of its independent monetary policy, while the European Central Bank’s interest-rate decisions would not necessarily match the country’s economic needs at every point. Kurali also warned that choosing an inappropriate final conversion rate could create lasting competitiveness problems.
Economists have similarly cautioned against rushing the process. A slower convergence path could provide more time for structural reforms and investment, while market confidence may depend more on a credible roadmap than on a specific adoption date. For now, therefore, 2032 should be viewed as a potential target rather than a guaranteed date for Hungary to adopt the euro.
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Everyone is talking about WHEN Hungary will join the eurotrash funnymoney.
Is anyone asking WHETHER Hungary should join it?!?!?
Is it your full time job to stir up controversy on this web site? You seem to be here always, everywhere. As for the Euro, most other nations that have adapted it seem to be doing well. If there’s any ‘funny money’ it’s the forint.
Don’t worry, Steiner.
The euro will crash before then.
Its a race to the bottom between USD$ and the Euro. The polieticians are throwing away good money after bad in Ukraine on a lost war with millions of dead soldiers and half the population of Ukraine displaced. By the time Hungary joins the Euro it literally will be worth more for toilet paper than money.
ok mr kremlin