Hungarians want to replace forint with euro, but the government does not
It has long been a question whether Hungary will ever use the euro instead of the forint. The question divides Hungarians. According to a recent survey, most Hungarians would adopt the euro, and most experts are also pro-euro. However, the Hungarian government regularly argues that the introduction of the euro would adversely affect Hungary and result in an economic downturn.
According to a Eurobarometer survey, 69 per cent of Hungarians would like to switch to the euro, 26 per cent would not like to adopt it, and the remaining 5 per cent were uncertain about the issue. The popularity of the euro has increased compared to previous years. This may be related to the coronavirus epidemic. Ákos Péter Bod, a professor at Corvinus University, believes that the euro has not become more popular, but the weakening of the forint is pushing people towards the euro. He added that the euro is popular in countries with high inflation, such as Romania and Hungary.
During the coronavirus epidemic, one euro became 30-50 forints more expensive.
In 2019, it was possible to buy one euro for 310-330 forints, while during the epidemic, one euro costs 360 forints, but for a short time, the exchange rate was above 370. “A weaker forint causes higher inflation and a relative loss of wealth for the majority of Hungarians,” Zoltán Török, chief economist at Raiffeisen Bank, tells portfolio.hu.
Central bank governor György Matolcsy believes that the changeover to the euro should not be done in the interest of Hungary’s economic development. Dr László Csaba, an economist and professor at CEU, believes that the benefits of adopting the euro can be seen in Slovakia. Slovakia used to be one of the poorest countries but is now a leader in the region. László Csaba, who had previously helped Viktor Orbán with advice, refuted Matolcsy’s claims step by step.
The euro area is a serious safety net in the event of a crisis.
It is not worth it for a small country to maintain its own currency. László Csaba told 24.hu that it is completely feasible that there will be euro in Bulgaria or Romania sooner than in Hungary. According to the current position of the Hungarian government, the introduction of the euro is not expected in this decade. The government believes that its own currency is a source of independence and economic advantage, even though most experts see the situation differently.
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Source: portfolio.hu, 24.hu
9 Comments
If Hungary adopts the EURO, it will forever be in ‘the grip’ of Brussels and its independence as a sovereign nation is doomed.
That would suit Brussels perfectly : today the EURO, tomorrow sexual deviants ( = the so-called “alphabet people”) and then hordes of ILLEGAL MUSLIM MIGRANTS.
Farewell Hungary !
For once I agree with the AlfredE.Neuman character. To adopt the Euro would be absolutely ridiculous. Hungary would suffer greatly. Say no to the Euro.
I guess that if there is ever going to be a change it will be from forint to yuan, and it might happen sooner than we think…
Do not tie yourselves further to the EU by changing your money, your identity. You lose too much control and they are already being big WOKE BULLIES.
AlfredE.Neuman – St. Paulus – opened the right page of the Bible and interpreted its message correctly on this article.
Denmark – is a good case study why it has NEVER opted to go Euro.
Every eastern European nation that adopted the Euro suffered greatly for it. The peoples standard of living fell and no one but the bankers came out better off. Hungary should NEVER adopt the Euro unless it wants to ecome permanently subjugated to the globalist forces in Brussels. NO TO the Euro
I ahree with FarewellHingary and NoWay. And additionally Hungary will loose its competitiveness in Europe. Euro will not help Hungary’s inflation. That have to be taken care of inside Hungary. On the contrary euro will decrease Hungary’s competitiveness due to higher prices. That will lead either lower salaries or higher unemployment rate. Look at Southern Europe. Has it gone any better there with euro? Look at Sweden and Denmark. Their economy is thriving with their own currency.
Dear Andras Balogh,
I think this survey is totally erroneous!
Who in their right mind would want to have the Euro!
Let us face it, it doesn’t have much future.
Initially perhaps, it held great hopes but not any more.
Of all the EU states, Slovakia is probably the best model for a hypothetical “Hungary using Euro” scenario.
Slovakia has adopted Euro 2009. This means that it has pegged it’s currency to Euro few years before 2009, thus introducing Euro in all but a name.
Historically, Slovakia had lower GDP per capita than Hungary. This changed on 2008. Slovakia has been ahead of Hungary ever since – be it because or despite Euro.
https://countryeconomy.com/countries/compare/slovakia/hungary?sc=XE34
How can anyone see these figures and conclude that joining the Eurozone would be detrimental for Hungarian economy is an interesting question.