Hungary may have to wait until at least 2033 to adopt the euro, despite Prime Minister Péter Magyar setting a target of 2030 or 2031 for joining the European common currency. Magyar’s center-right Tisza party swept to power in April, ending right-wing populist Viktor Orbán’s 16-year rule, and promising to tackle corruption, repair Hungary’s economy and pursue closer European integration. But Hungary still faces significant hurdles before entering the eurozone. The country remains subject to the EU’s excessive deficit procedure and is not part of ERM II, the exchange-rate mechanism in which prospective euro members must participate for at least two years. Independent brokerage Equilor said on Thursday that 2033 would be the earliest realistic date, assuming rapid fiscal consolidation allows Hungary to enter ERM II by 2030. Inflation has fallen significantly, with Hungary now appearing to satisfy the eurozone’s price-stability criterion, Equilor said.
