Debrecen4U June 5, 2026

Expert at Portfolio Discusses Potential Impact of Euro Adoption on Companies in Debrecen

When the euro is introduced, it may be possible to prevent the surge in retail prices that many people fear, a concern also experienced in Bulgaria, whereby retailers increase prices when converting from the forint to the euro. These issues, along with the country’s economic outlook, were discussed in the latest edition of Médiacentrum Debrecen’s HírPONT by István Madár, Chief Analyst at the Portfolio Group.

“It is always very good news when the two main actors of economic policy – the government and the central bank – agree on their objectives,” István Madár said, referring to Monday’s meeting between Prime Minister Péter Magyar and Central Bank Governor Mihály Varga. According to him, conflicts typically arise when, for example, the government prioritises economic growth while the central bank focuses primarily on bringing down inflation, creating a degree of contradiction between the two. At present, however, no such conflict appears to exist.

Recent years have clearly demonstrated that inflation poses a serious threat. Furthermore, a kind of “common anchor” has been found in the planned introduction of the euro, enabling both parties to align their economic policies accordingly.

Editor-in-Chief Zsuzsa Keserű asked what kind of economic policy would be required to introduce the euro. According to István Madár, the nine countries that successfully adopted the currency were not in a significantly better position five years before accession than Hungary is today. “I believe that introducing the euro in 2031 or 2032 is an achievable goal for the Hungarian economy,” he said. Hungary has rarely maintained disciplined economic policy for longer than two or three years at a time over recent decades. If this period can be extended to four or five years, and if both domestic and external conditions remain favourable, then the introduction of the euro could become a major success story, the Chief Analyst explained.

The strengthening of the Hungarian forint was also discussed during the programme. On this subject, the expert stated that economic policymakers have abandoned the idea that the forint should be continuously weakened, which he considers the correct decision, as experience has shown that such a policy was ineffective. As a result, many businesses are now being forced to adapt. Companies that planned their year based on an exchange rate of HUF 380 to 400 per euro must now reconsider their assumptions if the exchange rate falls to HUF 355 per euro.

Referring to the BMW Group Plant Debrecen, Zsuzsa Keserű raised the question of what effect euro adoption might have on players in the automotive industry. According to István Madár, the impact will not be dramatic, as German companies already conduct their calculations in euros. Consequently, Hungary’s entry into the eurozone would not, in itself, affect the operation or competitiveness of the factory. However, it would influence how Hungary is perceived abroad, as international investors would see the country operating in euros. “If someone wished to bring an economic activity or investment here, they would no longer have to deal with converting forints, nor the associated costs and uncertainties. Instead, they could invest directly in euros. This could generate further economic activity and attract additional capital. For example, a subcontractor may choose to establish operations where a major German company is already present.”

The programme also touched upon the fact that, on 9 June 2026, Portfolio Group will host the Debrecen Economic Forum in the city. The event will focus both on current issues affecting the region and on economic and financial topics of interest to corporate stakeholders, including small and medium-sized enterprises.

Source and photo credit: dehir.hu