The minister said he is due to meet Kyriakos Pierrakakis, President of the Eurogroup, together with Prime Minister Péter Magyar in Budapest on Friday.

Kármán noted that he had already held bilateral talks with Pierrakakis during the ECOFIN meeting in Cyprus in May.

Commenting on the mortgage interest-rate freeze, the minister said the government had repeatedly argued that with responsible economic policy and a predictable budget, the previous administration would not have needed to introduce and maintain what he described as a market-distorting measure.

He added that the government plans to maintain the interest-rate freeze until the beginning of October while allowing time for consultations, so that the measure can be phased out in a way that ensures support reaches those who genuinely need it.

Kármán’s remarks signal the government’s intention to align Hungary more closely with eurozone entry requirements.

However, meeting the Maastricht criteria by 2030 would not automatically mean introducing the euro by that date; rather, it would place Hungary in a position to proceed with the formal accession process once the necessary economic and institutional conditions are fulfilled.

Karman: Govt to submit medium-term budget plan for euro adoption by year-end

The government will submit a revised medium-term budget plan this year, which will also outline the path toward meeting the criteria necessary for the adoption of the euro, the finance minister said in Budapest on Friday.

During a meeting with Eurogroup president Kyriakos Pierrakakis and Prime Minister Peter Magyar, they discussed the progress made regarding the release of the EU funds as well as steps still needed to ensure these funds are utilised in Hungary, Andras Karman said.

In addition to the challenges and milestones on the path to the euro, the discussion also covered the possibility of voluntarily joining the European Banking Union, ways to improve European competitiveness, and in particular, issues related to the development of capital markets, the finance minister said.

The prime minister presented in detail the Hungarian government's economic policy priorities, its plans to kickstart economic growth, pursue responsible fiscal policy and create a predictable economic environment, Karman said.

Hungary's government has submitted the revised Recovery and Resilience Plan and it has been approved by the Commission. This programme still needs to be approved by the Economic and Financial Affairs Council at its next meeting on July 10, the finance minister said.

The sides agreed that the integration of European capital markets and the unification of their regulation must be strengthened as Europe is lagging behind the United States in this area, he added.

On the comprehensive review of the economic and budgetary situation inherited from the previous government, Karman said the government wants to submit this year's budget, based on realistic foundations and real numbers, by the end of August. At the same time, they will also begin planning the 2027 budget, which will be submitted by the end of October.

In response to a question, he said the most important Maastricht criteria are the fiscal ones, those concerning the deficit and the public debt.

Kyriakos Pierrakakis said they had a good discussion on the European economy and the challenges of the future.

The Eurogroup supports Hungary's eurozone accession aspirations, the plans and intentions of the Hungarian government and the Hungarian people, and is providing assistance in meeting milestones, he said.

Photo: Pixabay
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Source: MTI – Hungary’s national news agency since 1881.

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