Hungary’s premier‑in‑waiting, Peter Magyar, is eager to steer the country back into the European Union mainstream and is moving quickly to repair relations with Brussels.
A central element of that effort is a plan to prepare Hungary to adopt the euro by the end of the decade.
Some observers, including the central bank governor, warn that the timeline may be overly ambitious given that outgoing prime minister Viktor Orbán will hand over a weak economy and a difficult fiscal situation. Still, if accession is managed correctly, euro entry could bring substantial benefits.
Back to the European Union mainstream
Meeting the requirements for euro adoption will be a formidable challenge for the incoming government.
Magyar’s Tisza party has limited fiscal room to maneuver, especially amid ongoing instability in the Middle East, says Sili Tian of the Economist Intelligence Unit. Tian told DW he does not expect euro adoption within the next decade.
Tisza, however, is highly motivated. Returning Hungary from the “illiberal” periphery where Orbán placed it back into the EU mainstream was a core campaign promise. Joining the eurozone would reinforce that shift.
Speed matters: Magyar is pressing Brussels to unfreeze €17 billion that was blocked over rule‑of‑law concerns under Orbán; €10 billion of that must be accessed before it expires in August.
Tightening belts across Hungary
A 2025 survey found about 75% of Hungarians support adopting the single currency, though nearly as many say the country is not yet ready.
“A 2030 entry date may seem ambitious, but it’s not impossible,” Julia Király, former deputy governor of the central bank and a professor at the Hungarian Academy of Sciences, told DW. “The main challenge is that the Maastricht criteria be met.”
The Maastricht criteria set required levels for inflation, debt, budget deficit, interest rates and exchange‑rate stability. Hungary currently falls short on many of those fiscal measures.
Deep cuts to government spending will be necessary to tame the deficit, and achieving that by 2030 is the biggest hurdle. Tian argues it will be “impossible” because Magyar has pledged to continue many of Orbán’s spending policies while increasing defense outlays to meet NATO targets.
Pros and cons of joining the eurozone
Even attempting eurozone entry could yield benefits. Announcing an official bid tends to stabilize a national currency and can reduce inflation and interest rates. Borrowing costs should fall for the government and for businesses as European Central Bank oversight bolsters financial stability.
Euro membership would eliminate exchange‑rate risk and cut transaction costs—advantages for Hungary’s export‑oriented economy. The trade‑off is a loss of independent monetary policy and a reduced ability to absorb shocks. But accession also offers access to eurozone liquidity and bailout mechanisms should problems arise.
Eurozone partners are likely to be wary
Hungary’s weak fiscal position and more than a decade and a half of institutional backsliding will make other eurozone members cautious. Memories of the Greek debt crisis, which proved contagious and costly, could complicate Hungary’s path, as the eurozone will require consensus among existing members.
Partners may also fear Hungary could reverse course after future elections or return to an illiberal stance that disrupts the single‑currency area. Analysts at Capital Economics suggest Hungary will be regarded skeptically and must show euro entry has broad, cross‑party support.
A natural path for Hungary?
EU officials view Hungary’s move back toward the bloc positively. European Commission President Ursula von der Leyen welcomed Hungary’s “return to the European path,” and ECB President Christine Lagarde has framed such a return as naturally leading to the euro.
Within central and eastern Europe, Hungary adopting the euro would signal renewed convergence and political cohesion, Tian says.
When Hungary joined the EU in May 2004 it committed to adopting the single currency. It remains one of three countries from that accession group—alongside Czechia and Poland—that have not yet joined.
Given the heavy reliance of Visegrad economies on eurozone trade, it is striking that only Slovakia has adopted the euro so far. Hungary now hopes to capture benefits similar to Slovakia’s “Tatra Tiger” transformation, particularly by reducing exchange‑rate risk for major trading partners such as Germany and encouraging further investment in automotive and electronics sectors.
Hungary’s decision is unlikely to prompt a swift change in Czechia or Poland, where popular opposition to the euro—fueled by fears over inflation and loss of autonomy—still constrains serious debate. That said, euro adoption was also politically off the table in Budapest until recently.
“It can’t be ruled out that, sooner or later, all EU member states may join the eurozone in pursuit of greater competitiveness vis‑à‑vis the United States,” Király said.
Edited by: Tim Rooks