Rethinking Hungary’s path to the euro

The Tisza government has made euro accession a key part of its economic plans. Its goal of being ready to enter by 2030 looks optimistic given that Hungary is some way away from meeting the Maastricht criteria and the strains in relations with Europe under the previous government. The early-to-mid-2030s seems more plausible to us. If the government actively pursues euro-entry, inflation and interest rates are likely to follow a lower path and much of this is likely to materialise before actual accession.