Fitch: Hungary could meet eurozone entry criteria by 2030

How It Developed

Fitch Ratings said Hungary's draft budget for 2027 supports its aim of meeting the conditions for joining the eurozone by 2030.

The government intends to cut the general government deficit to 4.9% of GDP from an expected 7.5% for this year.

The budget includes planned spending cuts worth 1.5% of GDP next year.

The expiry of temporary and one-off pre-election measures could save a further 1.4%.

The budget counts on lower interest payments of up to 0.2% of GDP.

The government also plans tax increases and other measures to raise additional revenue worth about 1% of GDP.

Proposed spending cuts would affect some economic-development subsidies, government communications, public media, and state investment and operating costs.

The government expects tax increases to raise 0.25% of GDP through higher corporate and innovation taxation, 0.2% from a wealth tax, and 0.1% from a levy on energy companies.