The euro, in its current form, benefits strong and competitive economies, but does not contribute to strengthening emerging economies, Prime Minister Viktor Orban said at the tenth Lamfalussy Conference in Budapest on January 27.

He cited the Hungarian-born central banker Sandor Lamfalussy, known as the "father of the euro", who had warned that adopting the euro without adequate preparation could harm a country's economy. Lamfalussy’s words, as recalled by Orban, were: "If we are not ready, the euro will kill our economy."

According to the prime minister, even Lamfalussy himself could not say how much time was necessary for a common fiscal policy to be established parallel with the rollout of the euro.

Addressing the conference, dubbed The Age of Geoeconomics: Evolution of Central Banking, the prime minister argued that the era of liberalism will be replaced by a “sovereigntist” epoch. Hungary had been building “sovereigntism” for 15 years as the only country in the Western world.

He pointed out the eurozone's weaker economic performance compared to the United States since the introduction of the euro.  Since 2000, the GDP has grown by c.170% in the US, compared to 140% growth in the eurozone.

In his speech, the prime minister praised Gyorgy Matolcsy, the outgoing governor of the National Bank, for his contributions to Hungary's economic stability and acknowledged US economist Jeffrey Sachs, also speaking at a conference, for promoting Central European economic convergence. 

In the opening speech of the conference, Gyorgy Matolcsy stressed the mutual interest of the government and the central bank in maintaining the institution’s independence, which he noted had been successfully preserved in recent years. Matolcsy also recalled advice he received early in his career from Ewald Novotny, former head of Austria’s central bank, stressing that central banks must remain independent of governments, political parties and financial markets.

ECB President Christine Lagarde, President, this year’s recipient of the Lamfalussy Award, joined the conference virtually. She acknowledged the Hungarian-Belgian economist's pivotal role as the first president of the European Monetary Institute and a key architect of the ECB and the euro.

She noted that the inflation crises during underscored the importance of independent central banks with strong mandates to ensure price stability. By 2000, over 80% of the world’s central banks had achieved operational independence, and price stability became a primary goal across developed and many developing economies.

However, she warned that central bank independence is increasingly under threat. Political interference in central banks leads to higher market and macroeconomic volatility, increased bond yields and elevated risk premiums, exacerbated by geopolitical tensions, she added.

While Hungary is legally obligated to join the eurozone under its EU accession agreement, the government has repeatedly delayed the process, citing economic sovereignty, financial stability and readiness concerns.

Government officials and the central bank had previously said that Hungary should join the eurozone if the country’s average per capita GDP level converges to that of the EU. Hungary's GDP adjusted to purchasing power parity was 76% of the EU average in 2024. Budapest has not even set a target date for joining ERM-2.