ECB Report: EU Countries Outside Eurozone Lag Behind

The European Central Bank (ECB) has released a report stating that EU countries outside the eurozone have made little to no progress on convergence in recent years. The report highlights that even Hungary, which is actively discussing membership, does not meet any of the key criteria.

The ECB notes that public finances have deteriorated in most countries since the 2024 Convergence Report, with debt-to-GDP ratios increasing significantly in some cases. Bulgaria joined the currency bloc at the beginning of this year, but other potential members - including the Czech Republic, Hungary, Poland, Romania, and Sweden - are many years away from membership.

Of these five countries, Hungary is among the furthest behind, with high debt and interest rates, as well as a budget deficit, inflation rate, and currency volatility that all exceed benchmarks. The country's central bank law also does not meet requirements, and it needs to improve its rule of law and fight corruption.