Mihály Varga, governor of the Hungarian National Bank, has expressed cautious support for Prime Minister Péter Magyar’s plan to introduce the euro, emphasizing the need for thorough preparation and signaling that the central bank would act as a constructive partner, Bloomberg reports.
Polish central bank governor Adam Glapiński urged caution, arguing that a national currency offers protection against external economic shocks. In contrast, Austrian central bank governor Martin Kocher stressed that adopting the euro would reduce transaction costs and foreign exchange risks over the long term.
In several analytical articles, europeanconservative.com’s economics writer Sven R. Larson has warned that, based on the experiences of previous countries that have joined the euro zone, such a move is a long-term threat to the Hungarian economy, showing a significant lack of economic growth in countries after trading their sovereign currency for the euro.
According to Varga, the final decision will ultimately be a political one to be made by Prime Minister Péter Magyar.
