Romania likely to adopt Euro before Hungary

Romania and Bulgaria are likely to adopt the Euro currency sooner than the already EU member Hungary, according to Budapest Business Journal which quotes an official with Standard & Poor’s company. The problem that Hungary deals with is the high budget deficit of 11% of the GDP in 2006, and 8% forecast in 2008.

The rating agency S&P estimated that Hungary might adopt the European currency in 2014, while countries like Slovakia, the Czech Republic and Poland will adopt the Euro in 2009, 2011 and 2012 respectively.

The Romanian Central Bank governor announced that Romania might adopt the Euro in 2012-2014.

Hungary has raised taxes, increased regulated prices and cut the size of state bureaucracy to reduce the deficit, however, the deficit this year might be higher than the official budget-deficit target for a fifth consecutive year.

Hungary has become an EU member state in May 2004, while Romania and Bulgaria are scheduled to enter the EU in 2007.