Hungary Ready to Adopt the Euro in 2030

The Hungarian National Bank has a clear and firm position: we are obliged to adopt the euro, which will be a joint decision of the Hungarian government and the European Commission, György Matolcsy said – as reported by Hirado.hu.

Twenty countries have already adopted the euro, and at some point our country should follow suit, added the chairman.

Our position is that when we reach almost 90 percent of the average level of development of the European Union, we will be ready for the euro. In György Matolcsy’s view, we should get there by 2030.

To introduce it before then would be irresponsible, because we have seen, for example, that Slovakia entered the eurozone somewhat unprepared but with great determination, and their economy has fallen back enormously,”

he explained.

Greece also entered the eurozone unprepared, twelfth after the eleven founding countries, and they too have lost out, he continued.

Árpád Kovács, the Fiscal Council President, earlier estimated that we could adopt the euro as early as 2024, but that has proved too optimistic.

In the meantime, it makes sense to make good use of the Hungarian central bank’s special room for maneuver, which we used well, for example during the very risky and dangerous period of the Covid crisis, Matolcsy pointed out. He added that “we have made more than 11,000 billion forints available to the Hungarian economy, and this has meant an extra 10 percent economic growth.” “We could not have done this as a eurozone member. The Hungarian National Bank was able to do this because it had targeted programs, such as the bond program,” he added. “So, until we reach the final stage of catching up, we need the instruments and resources of an independent, highly flexible national central bank,” he explained.

Via Hirado.hu; File photo: Facebook/Magyar Nemzeti Bank