Varga said nobody would complain if Hungary's accession to the eurozone was quick, but said the stress needed to be placed on a "successful and proper" accession.

Varga acknowledged the historic significance to Hungary's economy of the process of adopting the euro, but warned against losing sight of the ultimate goal: benefiting the welfare of society by achieving sustainable growth and economic convergence.

"In this respect, the euro is an important tool, but achieving the Maastricht criteria necessary for its adoption is not, in itself, a guarantee of economic success," he added.

Varga said Hungary was entering a "new phase" in which there was both a political and an economic policy commitment to adopting the euro, but added that would require the support of the general public, a coordinated strategy and a ready real economy.

He said Hungary now met the Maastricht criteria for inflation, while its risk assessment was better than at any time since the pandemic, and the forint was among the best-performing emerging market currencies in the world.

He added that Hungary was facing eurozone accession in a much more difficult economic environment than EU member states that had adopted the single currency earlier.

Varga said the advantages and disadvantages of adopting the euro had been balanced since the 2010s. He said the plan was to gradually reduce the NBH's 3.0pc inflation target.

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

MTI Photo

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