Hungarian National Bank: When will Hungary finally join the Eurozone?

The question of joining the euro area has divided Hungarian politicians and economic experts for years. While many EU countries have already adopted the single currency, Hungary has remained committed to the forint.

The Vice-President of the Hungarian National Bank (MNB), Barnabás Virág, stated in an interview that the introduction of the euro is not only a financial issue, but also a strategic decision that requires a significant increase in economic development, as Index reported. According to the central bank’s calculations, Hungary’s GDP would have to reach 90 percent of the EU average to avoid problems with the single currency. Sadly, the country is still far from that level.

The central bank’s VP argues that discussions about adopting the euro tend to arise when the forint’s exchange rate fluctuates. However, he warns that a rushed decision could lead to long-term economic challenges. Therefore, Hungary’s main priority is to reinforce economic stability and competitiveness before considering such a move.

Hungarian government vs. opposition on euro introduction plans

Hungarian Prime Minister Viktor Orbán is firmly against the introduction of the euro in the current economic situation. In a speech at the Lamfalussy Conference organised by the Hungarian National Bank, he warned that the benefits of the single currency would mainly accrue to the economically stronger countries, while less developed countries could be at a competitive disadvantage.

In his speech, he quoted Sándor Lámfalussy, one of the intellectual fathers of the euro, as saying that the euro area could only be truly successful if it had a common fiscal policy, but that this was still not in place. According to Euronews, Orbán said that if Hungary joined unprepared, it would do more harm than good to the economy. The Prime Minister added that the current economic environment in the EU was not favourable for catching-up countries and that the focus should be on solving competitiveness problems rather than on adopting the euro.