Hungary could qualify to adopt the euro by 2030 if it sticks to the fiscal plans set out in its 2027 draft budget, according to Fitch Ratings. In an assessment published on Thursday, the credit rating agency said the government’s deficit targets support its ambition to join the eurozone by the end of the decade, according to Euro News.
The draft budget, presented by Prime Minister Péter Magyar on Monday, aims to cut Hungary’s general government deficit to 4.9 percent of gross domestic product next year, from an expected 7.5 percent in 2026. The plan relies on spending cuts worth 1.5 percent of GDP, savings of 1.4 percent from the end of temporary pre-election measures, and lower interest payments worth up to 0.2 percent of GDP.
The government also intends to raise about 1 percent of GDP through tax increases and other revenue measures. These include higher corporate and innovation taxes, a wealth tax, and a levy on energy companies, along with smaller increases in mining royalties, company-car tax and advertising tax. Cuts would affect economic-development subsidies, government communications, public media, and state investment and operating costs. Ministries and state-owned companies are expected to reduce operating spending by at least 10 percent.
Fitch warned that carrying out the plan would not be easy. Many measures are small, some savings remain uncertain, and new spending commitments and tax relief worth about 1.4 percent of GDP would reduce the overall effect. The agency said meeting the 2027 deficit target would be a key test of the government’s credibility.
Fitch expects Hungary’s deficit to fall below 3 percent of GDP by 2030, while public debt is forecast to peak at 77.7 percent of GDP in 2027–2028. Growth should reach about 3 percent from 2028, helped by EU funds, investment and stronger private consumption.
Euro adoption would still require Hungary to meet inflation, interest-rate, exchange-rate and legal criteria. Eurasia Group sees possible membership in 2032 or later.
