Hungary Aims to Adopt the Euro by 2030

Hungary could meet the Maastricht criteria for adopting the euro by 2030—without implementing austerity measures. Prime Minister Péter Magyar made this statement at a press conference on June 26 in Budapest following talks with the President of the Eurogroup and Greek Finance Minister Kyriakos Pierrakakis.

According to the state news agency MTI, the government aims to create the fiscal conditions necessary for joining the eurozone by the end of the decade.

Financial Stability as the Key to the Euro

Magyar emphasized that restoring the confidence of domestic and international investors, making full use of EU funding, and securing better financing terms are crucial for introducing the euro.

The Prime Minister sees the biggest challenge in reducing public debt—one of the key Maastricht criteria. At the same time, lower financing costs could relieve the national budget by up to 100 billion forint (around 280 million euros) annually. These funds could then be channeled into economic development and the expansion of public services—two key campaign promises of the ruling Tisza party.

Falling Bond Yields Boost Optimism

According to Magyar, developments in the financial markets signal growing confidence in the Hungarian economy. Both yields on Hungarian government bonds and the forint exchange rate have improved significantly.

The yield on 10-year government bonds fell from 7.5% to 5.1%. Short-term financing costs also declined. At the most recent auction, the state debt agency AKK placed three-month treasury bills totaling 20 billion forint. The average yield was 5.46%, slightly above the secondary market benchmark.

Euro Aims to Strengthen Budgetary Discipline

According to Magyars, the introduction of the euro would provide greater economic predictability while also strengthening fiscal discipline. The common currency could limit persistently high budget deficits and inflation risks in the long term.

At the same time, he emphasized that a decision on joining the eurozone would only be made after comprehensive consultation with the public.

Eurogroup President Kyriakos Pierrakakis assured Hungary of support on its path toward adopting the single currency. He also stated that the revised Hungarian resilience plan could be approved as early as the Ecofin meeting on July 10.

New Budget Planning Starting This Fall

Finance Minister András Kármán announced that the revised 2026 budget would be submitted to Parliament at the end of August. The draft budget for 2027 is expected to follow by the end of October. This marks Hungary’s return to its previous practice of holding budget deliberations in the fall.

Markets Bet on Better Relations with the EU

According to Gergely Tardos, chief economist at OTP Bank, financial markets are increasingly pricing in an economic policy shift under the new government.

A key factor is the expectation that relations between Budapest and Brussels will normalize. This could lead to the release of frozen EU funds and the resumption of substantial financial inflows. Investors view access to European subsidies as crucial for higher growth, a more stable fiscal situation, and lower external risks.

Widespread Public Support

The introduction of the euro also continues to enjoy broad support among the public. Recent polls show that nearly 80% of Hungarians would like to replace the forint with the euro in the long term. Less than a quarter oppose this move.

Support is particularly high among supporters of the ruling Tisza Party: More than 90% are generally in favor of joining the eurozone. Among voters of the opposition Fidesz Party, however, skepticism prevails. About two-thirds oppose the introduction of the euro in the foreseeable future.

The survey also shows that reservations are particularly widespread among older people, residents of rural areas, and those with lower levels of education.

The results largely align with the latest Eurobarometer survey. That survey shows support for the common European currency at 80%—the highest level ever recorded in an EU member state outside the eurozone—which is five percentage points higher than the previous year.