Equilor Has Calculated when We Can Pay with Hungarian Euros as Soon as Possible
14 Articles
14 Articles
According to their analysis, meeting public finance criteria is the biggest obstacle.
According to our current estimates, Hungary can introduce the euro in 2033 at the earliest, Equilor said at a press conference on Thursday. According to the brokerage firm's experts, with a hefty budget adjustment, it may be possible to meet the entry criteria around 2030, after which it would have to spend two years in the ERM-II exchange rate system. The analysts added: from the perspective of the Hungarian economy, a slightly weaker forint ex…
The public debt is too high and may continue to grow for years, with heavy interest charges, which is why the budget is on a forced path. One advantage of the euro adoption may be that forint cash assets "not always related to legal activities" may be uncovered.
According to Equilor, the conditions for the introduction of the euro can be met around 2030, and the euro itself may not be realistic until 2033 at the earliest. However, this requires a significant budgetary turnaround. The brokerage firm expects the euro to be worth 370 forints by the end of the year. Should we intervene to reduce overhead costs?
Next year's budget may show whether the government is serious about introducing the common European currency in Hungary.
The Orbán government's politically driven economic decline and the accompanying drastic exchange rate crisis have led to an unprecedented increase in the demand for stability in Hungarian society. Although the path ahead is bumpy due to the constrained budget and the relatively high public debt, macroeconomic balance can be gradually regained with transparent, prudent structural reforms. If the necessary and inevitable budget consolidation is ca…
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