Eger, 10 September 2026 – “Euro adoption must be carried out in such a way that it yields more benefits than risks for Hungary’s economy,” according to MNB Governor Mihály Varga, speaking at the 64th Itinerant Congress of Economists. He underlined that it was necessary to adopt the euro in a manner that would allow Hungary to sustainably increase its level of economic development both before and after introducing the common currency, and also pointed out that Hungary had already successfully fulfilled one of the most important requirements, namely reducing inflation.
Varga recalled that upon joining the European Union in 2004 Hungary had also committed to eventually adopting the common currency. He added that although the economic policy requirements for euro adoption had changed from time to time over the past two decades Hungary had now reached a stage where its commitment was coupled with strong political resolve. The Governor highlighted that while the euro may be an important element in Hungary’s economic convergence it would be remiss to believe that it constituted a cure-all in and of itself. Numerous international examples had shown that meeting the criteria for euro adoption was not a guarantee for success by itself. As he had previously noted, the economic shocks of the 2020s had hit Hungary hard and significantly undermined its economic indicators. Consequently, Hungary did not satisfy any of the convergence requirements in 2024 or 2025. At the same time, however, there was good news this year when it came to inflation, which was one of the most important requirements for euro adoption, as Hungary had managed to achieve the reference value thanks to its consistent monetary policy, with the annual rate of inflation falling to 1.3 per cent by August. Varga highlighted that euro adoption required harmonious cooperation between all political economy branches and thus also necessitated a constructive partnership between the government and the central bank. The Magyar Nemzeti Bank was ensuring a predictable macroeconomic environment by creating price stability; on the fiscal policy side, the sustainable reduction of the budget deficit and public debt was a crucial requirement. Governor Varga added that even though euro adoption had many benefits and risks, strong public support, a coordinated strategy and a well-prepared real economy were essential in order for Hungary to take a step of such historical significance.
Magyar Nemzeti Bank