Budapest, 10 October 2026 – “Adopting the euro may benefit Hungary, but more important than the date is that the Hungarian economy is adequately prepared to introduce the common currency,” said MNB Governor Mihály Varga, speaking at the Hungarian Civic Cooperation Association’s “Civic Gondola” event. He underlined that the euro was not a panacea and did not represent a solution to economic challenges on its own. Thus, the goal was not to adopt the euro quickly, but rather successfully.
Governor Varga pointed out that Hungary’s most important economic strategy goals were to permanently improve social welfare and ensure sustainable economic convergence. The requirements for adopting the common currency must be fulfilled in such a way that they have a positive impact on sustainable growth. He emphasised that euro adoption offered significant advantages for Hungary. A reduction in interest rate levels could ensure lower cost financing and the elimination of exchange rate risk could make companies’ business operations more predictable, while the disappearance of currency conversion fees could save HUF 130 billion annually. Varga warned however that, in addition to the favourable effects, the risks must also be considered. As he had previously pointed out, by introducing the euro Hungary would lose its independent monetary policy, and thus an interest rate policy that followed domestic economic developments would cease to exist. Moreover, a common monetary policy was not necessarily able to adequately manage economic shocks impacting certain Member States in different ways. Consequently, according to MNB Governor Varga, preparations must go beyond merely meeting the Maastricht criteria. Maintaining inflation at a consistently low level, restoring fiscal balance, increasing productivity and improving competitiveness were all equally vital. He underlined that the results of successful preparation would be visible before the actual introduction of the euro. Strengthening stability, competitiveness and investor confidence could contribute to Hungary’s development in and of itself. On the MNB’s part, achieving and maintaining price stability was the most important objective for adopting the common currency and achieving sustainable growth. One important milestone in this regard was the reduction of the MNB’s inflation target to 2.5 percent. Governor Varga added that, thanks to the MNB’s consistent monetary policy, inflation was 1.6 percent in September, which represented a moderate level of price increase in historical and international comparison, but external inflation risks continued to warrant a cautious, disciplined monetary policy.
Magyar Nemzeti Bank