Key facts
- Hungary aims for euro adoption possibly in 2032.
- The 2027 deficit target is 4.9% of GDP.
- The government aims for a deficit below 3% of output by 2030.
- The policy marks a shift from former PM Viktor Orban's opposition to the euro.
Hungary's government is aiming for euro adoption possibly in 2032, with Finance Minister Andras Karman stating that a front-loaded budget adjustment focused on spending cuts is key to achieving this goal. The government has set a deficit target of 4.9% of GDP for 2027, a significant reduction from the expected 7.5% this year, and aims to bring it below 3% by 2030. This policy shift contrasts with the previous stance of former Prime Minister Viktor Orban, who opposed the euro. The government plans to establish a working group with the central bank next year to prepare for entry into the Exchange Rate Mechanism II (ERM-2), the waiting room for the euro. Karman cautioned against rushing this process, emphasizing that the focus should be on adopting the euro as soon as feasible and spending the minimum necessary time in ERM-2. Earlier, central bank Deputy Governor Zoltan Kurali had warned that risks could delay euro accession beyond 2033.