The Advantages and Disadvantages of Introducing the Euro: Debates and Economic Conditions

Abstract

In analyzing the advantages and disadvantages of adopting the euro, this article concludes that introducing the euro before the economy and society are adequately prepared could push the Hungarian economy into a development trap. It supports this conclusion with a detailed analysis of the current state of the economy and society. It recommends that, although a balanced fiscal adjustment is warranted, the planned date for adopting the euro should be set only after a comprehensive and objective assessment of the situation and the development of a strategy to address weaknesses.