Hungary’s new government has outlined a plan to adopt the euro by 2030, marking a major shift in economic policy under Prime Minister Péter Magyar following the defeat of longtime leader Viktor Orbán in April.

The government’s goal is to meet the economic requirements for joining the eurozone by around 2030, although officials have stressed that Hungary must first put its public finances on a sustainable footing.

A key challenge is Hungary’s budget deficit, which is expected to exceed 7% of gross domestic product in 2026. The administration has pledged fiscal reforms and a reduction in the deficit, with its upcoming budget and medium-term financial plan expected to outline how the country intends to meet the conditions for adopting the common currency.

The euro plan has already influenced financial markets. Hungary’s currency has strengthened, and government bond yields have fallen as investors respond to expectations of fiscal discipline and closer economic ties with the European Union. However, analysts have warned that markets could react negatively if the government fails to deliver a credible plan.

Adopting the euro would mean replacing Hungary’s national currency, the forint, with the shared currency used by eurozone members. The change could eliminate exchange-rate risks for businesses trading within the currency union and reduce currency conversion costs, while potentially lowering borrowing costs.

There are also trade-offs. Hungary would give up its independent monetary policy, meaning its interest rates would be shaped by the European Central Bank rather than tailored exclusively to domestic economic conditions. Hungary’s central bank governor has cautioned that successful adoption requires more than meeting formal entry criteria, emphasizing stable inflation, fiscal balance, productivity and competitiveness.

Hungary remains outside the eurozone, and the forint has not yet entered the Exchange Rate Mechanism, a required stage on the path to euro adoption. The government’s target therefore depends on meeting the EU’s economic and institutional conditions before joining the currency union.

For Magyar’s administration, the euro initiative is part of a broader effort to restore investor confidence and strengthen Hungary’s relationship with European institutions. Whether the country reaches its 2030 goal will depend on its ability to rein in deficits and demonstrate that its economy is prepared for the transition.