Hungarian Prime Minister Peter Magyar unveiled a 2027 budget plan in parliament aimed at cutting the country’s deficit to 4.9% of gross domestic product, down from an estimated 7.5% this year, as part of a broader strategy to bring Hungary in line with the criteria for adopting the euro.
The budget sets out a multi-year path to bring the shortfall down further, targeting the 3% threshold required for eurozone membership by 2030, a steep reduction from the more than 7% deficit levels the country has been running.
Magyar’s government is projecting GDP growth of 2.4% in 2027, up from an estimated 1.7% this year, with officials pointing to the unfreezing of €16.4 billion in European Union funding as a key driver behind the improved growth outlook.
The deficit-reduction push forms the centerpiece of what Magyar's administration has framed as a decisive commitment to eventual euro membership, a goal that marks a shift in Hungary's economic positioning within the bloc.
Financial markets have responded favorably to the announced trajectory, with the forint rallying and Hungarian government bonds delivering double-digit returns for investors who had bet on the country's renewed push toward meeting the common currency's fiscal criteria.
The scale of the planned consolidation, cutting the deficit by more than two percentage points in a single year and continuing to narrow it through the end of the decade, will test the government's ability to balance spending discipline against the growth targets it has also promised voters.
