Will Hungary introduce the euro in 2024? Here is what Bloomberg says

The leaders of the European Union, including Christine Lagarde, Chairwoman of the European Central Bank, wrote in an article that the euro bolsters Europe’s global confidence. However, Hungary, alongside some EU member states, appears content with their national currencies.

The debate surrounding the euro’s introduction in Hungary has persisted. Advocates argue that it could shield Hungarian consumers from fluctuations in the Hungarian forint’s exchange rates. Conversely, skeptics raise concerns that the euro may not resolve Hungary’s economic challenges, such as high inflation, and could constrain the government’s flexibility.

EU leaders assert that the euro made life easier for citizens in the 20 member states adopting it, facilitating price comparisons and enhancing travel and trade opportunities.

Nonetheless, certain countries express less enthusiasm for the European Union’s common currency. Despite the mandatory nature of euro adoption, some states, including Sweden, Poland, the Czech Republic and Hungary, seem disinterested. Additionally, Brussels granted Denmark an exemption from compulsory adoption. Of these five countries, Hungary is the least affluent. Meanwhile, progress toward eurozone accession is underway for some nations.

Here is when Hungary may introduce the euro

Earlier, Prime Minister Viktor Orbán acknowledged the pros and cons of the matter, emphasising current disadvantages. He said that adopting the euro could slow down Hungary’s development, as happened in the case of Slovakia. Slovakian economists counter-argued, attributing the development halt to Slovakia’s economic challenges rather than the currency change.

György Matolcsy, Governor of the Hungarian National Bank, stated in June that Hungary would consider introducing the common currency once it achieves 90% of the EU’s average development level. Eurostat data for 2023 indicates Hungary has reached 75% of the European average, one place behind Poland ( being slightly under 80%), placing our country 20th among the EU26. In 2022, Hungary surpassed Portugal, an EU member since 1986. Hungary joined the community in 2004.

Read also:

• Central bank governor talks about euro introduction in Hungary – Read more HERE
• Hungarian finance minister: We need to think about the introduction of the euro – Details in THIS article