Hungary Eyes Euro Adoption While Forecasts Highlight Maastricht Criteria Progress
Hungary could be ready to join the eurozone by the end of the following year. This outlook came from Arpad Kovacs, the head of the Hungarian Financial Council, as reported by TASS. In a speech to the Chamber of Commerce and Industry, Kovacs asserted that Hungary will be able to meet the Maastricht criteria by the end of 2024.
He explained that the Maastricht criteria, established by the 1992 European Union Treaty, set the thresholds for a country to participate in the euro area. These indicators focus on the stability of the financial system, price levels, and the stability of the exchange rate. Kovacs stressed that these metrics guide assessments of a country’s readiness to introduce the euro and to sustain monetary stability within a unified currency area.
Looking ahead, Kovacs forecast that by the middle of next summer the country could see a inflation rate near 3 percent. He also projected that public debt would dip below 70 percent of GDP and the budget deficit would settle around 2.9 percent. He suggested that these improvements would anchor a stronger fiscal position and support the path toward euro adoption.
According to his projections, Hungary’s GDP growth in 2023 would hover around 1 percent, with a notable acceleration to roughly 3.5 to 4 percent in 2024. These figures reflect cautious optimism about domestic demand, investment, and external trade dynamics that could bolster the economy during the transition period. Kovacs reiterated these expectations during his May remarks as well, underscoring a consistent outlook across discussions held earlier in the year.
For context, the eurozone comprises all European Union member states that use the euro as their official currency and have the authority to issue euro-denominated banknotes. Currently, there are 17 countries that participate in the euro area. This shared monetary framework anchors price stability and supports cross-border trade within the region. On the ground, the question remains how quickly Hungary could align its monetary and fiscal policies with eurozone standards and what steps will be needed in the period ahead.
Eastern Europe has not yet seen the euro as a circulating currency widely beyond the eurozone boundaries. While some neighboring economies pursue convergence with euro-area norms, the introduction of the euro remains contingent on meeting all convergence criteria and gaining requisite approvals. Observers note that ongoing reforms and macroeconomic resilience will shape Hungary’s trajectory as it approaches potential membership in the euro area. These conversations continue to unfold against a broader regional backdrop that emphasizes stability, growth, and financial integrity for all participants in the European monetary system.