Hungary targets euro in largest expansion since 2001
Following Peter Magyar's landslide victory, Budapest commits to adopting the single currency by 2030, which would mark the bloc's biggest expansion in over two decades. Investors have responded enthusiastically, pushing the forint to its best weekly performance in 16 years.
Apr 22nd 2026 · Hungary
Hungary's new leader Peter Magyar has made euro adoption one of his top priorities following his landslide election victory on April 12, a move that would mark the largest expansion of the single-currency bloc since Greece joined in 2001. The incoming government has committed to creating conditions for euro adoption by 2030 at the latest, with Finance Minister Andras Karman set to oversee the process. The optimism surrounding Hungary's pro-European direction gave the forint currency its best week since 2009, as investors responded positively to the speed at which the new leadership has pursued its euro agenda and reset relations with Brussels. The path to euro membership typically takes several years as aspirants must meet EU benchmarks for debt, budget deficits, and inflation, while also updating legal frameworks related to central bank autonomy and maintaining a stable exchange rate in ERM II for at least two years. Bank of America sees the 2030 target as realistic, with economist Mai Doan noting that the political commitment appears strong. Three-quarters of Hungary's population supports switching to the common currency, according to a 2025 Eurobarometer survey, though only a fifth believe the nation is currently ready for adoption. The legacy of outgoing Prime Minister Viktor Orban's 16-year rule includes a sluggish rate of economic growth and one of the EU's widest budget deficits, making fiscal adjustments more challenging. Meanwhile, EU ambassadors meeting in Cyprus expect to finally approve a long-delayed 90 billion euro loan for Ukraine following Hungary's leadership change. The funding, agreed last December, was blocked in February by Orban, who demanded that Russian oil supplies through the Druzhba pipeline be restored before Hungary would approve the loan. Ukraine has since repaired the damaged pipeline, and Hungarian energy firm Mol says supplies resumed to both Hungary and Slovakia on Wednesday. Orban, serving as caretaker leader until early next month, had insisted his country was facing an "oil blockade," though satellite imagery showed substantial damage from Russian strikes at the Brody oil hub in late January. Ukrainian President Volodymyr Zelensky said he had discussed unblocking the loan with European Commission President Ursula von der Leyen and European Council head Antonio Costa, calling it "a matter of life and death" for Kyiv, with two-thirds of the funding designated for defense needs.