Hungarian Prime Minister Viktor Orbán has once again placed himself at the center of Europe’s political debate, declaring that Hungary should not adopt the euro and should distance itself from what he described as a “disintegrating” European Union. In an interview with the Hungarian news outlet EconomX, quoted by Reuters, Orbán said that linking Hungary’s future too closely with the EU “would be a mistake” because the European project “is falling apart.”
Orbán’s comments come amid growing tension between Budapest and Brussels, as well as deepening economic challenges at home. Hungary continues to struggle with high inflation, a weakening currency, and stagnant investment, while EU funds remain partially frozen due to ongoing disputes over rule of law and democratic standards.
According to Orbán, the current interest rate set by Hungary’s central bank—6.5 percent—is “higher than it could be,” though he admitted that further cuts would proceed “more slowly than we would like.” He attributed this caution to central bank governor Mihály Varga. The Hungarian inflation rate, measured by CPI, stood at 4.3 percent in both July and August, still above the National Bank’s target of 3 percent with a one-point tolerance band.
In an effort to stimulate growth and counter rising opposition pressure ahead of next year’s general election, Orbán’s government has launched a new credit program for small and medium-sized enterprises, offering loans of up to 150 million forints (around 386,000 euros) at a fixed 3 percent interest rate. Similar low-interest loans are being offered for housing and family support, accompanied by tax cuts and business incentives.
Yet Orbán’s sharpest words were aimed at Brussels. Speaking at a press conference in Budapest, he argued that “the European economy is in serious trouble, its competitiveness is deteriorating, and there is no plan to fix it.” He called the EU’s economic policy “defensive,” blaming high energy prices, the war in Ukraine, and continuing disputes over war financing for the continent’s stagnation. “This is not good for a country like Hungary, which not only wants to protect what it has achieved but also wants to grow,” he said.
Orbán’s renewed criticism of the EU and rejection of the euro come as Hungary’s long-serving leader faces what analysts describe as his toughest election since taking office in 2010. Parliamentary elections are scheduled for April 2026, and recent polls show the opposition party TISZA leading over Orbán’s Fidesz for the first time in more than a decade. While TISZA praised the government’s new credit programs, it argued that such short-term measures will not revive investment or economic stability without restoring access to EU funds and ensuring predictable fiscal policy.
Orbán’s stance on the euro also fits into his broader political narrative, in which he positions Hungary as a defender of sovereignty against what he portrays as an overreaching European elite. His declaration that the EU is “falling apart” resonates with eurosceptic voters but further strains Budapest’s already fraught relations with Brussels.
With inflation still above target, EU funds frozen, and political pressure mounting, Orbán’s gamble is clear: he is betting that nationalist economic rhetoric can outweigh Hungary’s growing economic isolation. Whether that strategy will succeed—or merely deepen Hungary’s rift with the European mainstream—remains to be seen.
