Hungarian Opinion: Pros & Cons Of Euro

  • 4 Sep 2019 9:52 AM
  • BudaPost
Hungarian Opinion: Pros & Cons Of Euro
As the Forint weakens to an all-time low against key currencies, a liberal analyst thinks that the government has multiple reasons not to introduce the Euro.

On Index, Dénes Csurgó ponders the government’s reasons for not committing to the introduction of the Euro in the near future, even though Hungary could easily meet all the requirements to enter the Euro zone.

Csurgó recalls a public opinion survey which showed that half of the Hungarian population would be happy to switch to the Euro, while only 38 per cent prefer to stick to the Forint.

As Croatia and Romania have also announced their intention to join the Euro zone soon, and the Forint hits a historical low against the Euro, many interpret the insistence on the Forint as a sign of economic weakness.

Csurgó admits that the Euro could potentially help to contain inflation and boost investment, but thinks nonetheless that the government has good reasons to resist abandoning the national currency.

Csurgó points out that less developed countries in the Euro zone lose their leverage over monetary policy and cannot incentivize their economies in times of economic slowdown.

Moreover, if the country is indebted in Forints rather than foreign currencies, it can inflate away part of its debt, Csurgó adds.

In an aside, Csurgó notes that keeping the Forint is an important symbolic tool as well for the government to underscore its commitment to national sovereignty and opposition to closer EU integration.

Related links

Hungarian Forint Sinks To All-Time Low

  • How does this content make you feel?

XpatLoop Media Partner


Launched in May 2011 to provide a balanced picture of matters covered in Hungary’s national press. Their aim is to make it easier for English-speakers to understand where this country is now and where it’s heading according to the full spectrum of media opinions.

Explore More Reports

  • Forint Under 'Strong Speculative Attack'

    Forint Under 'Strong Speculative Attack'

    • 8 Apr 2020 12:36 PM

    Gergely Gulyás, head of the Prime Minister’s Office, has praised Hungary’s central bank for its “excellent” handling of a “strong speculative attack” against the forint, which he said had been the reason behind the weakening of the national currency to record low levels of 360-370 against the euro.

  • Introducing Euro Was A Mistake In Hungary Says Matolcsy

    Introducing Euro Was A Mistake In Hungary Says Matolcsy

    • 5 Nov 2019 7:52 AM

    Launching the euro “was a mistake” as almost none of the preconditions for a common currency had been met at the time, György Matolcsy, the governor of Hungary’s central bank, said in an article published in the Financial Times.

  • DK Calls For EU To Press Hungary To Adopt Euro

    DK Calls For EU To Press Hungary To Adopt Euro

    • 30 Aug 2019 10:14 AM

    The opposition Democratic Coalition (DK) will propose in the European Parliament that the European Union should legally compel Hungary to introduce the euro, DK MEP Csaba Molnár said.