ECB reports limited progress towards euro adoption in five countries

The European Central Bank (ECB) has published its 2026 Convergence Report, evaluating the progress of five non-euro EU member states—Czech Republic, Hungary, Poland, Romania, and Sweden—towards adopting the euro.

The report indicates limited progress in economic convergence, with external shocks such as geopolitical tensions and energy market volatility affecting growth and inflation. Despite resilience, countries face challenges including legislative incompatibility with euro adoption requirements.

Regarding price stability, three countries—Romania, Hungary, and Poland—recorded inflation above the 2.7% reference value, while the Czech Republic and Sweden remained below. The fiscal situation has deteriorated, with Hungary, Poland, and Romania exceeding the 3% deficit threshold in 2025, and debt-to-GDP ratios rising, with projections indicating further increases in 2026 for Poland and Romania.

Excessive deficit procedures are in place for Romania, Hungary, and Poland, with deadlines extending to 2026–2030. None of the countries participate in the exchange rate mechanism (ERM II), and some currencies have experienced significant fluctuations against the euro.

Long-term interest rates above the reference value of 5.1% were recorded in Poland, Hungary, and Romania. Institutional quality varies, with room for improvement in governance and legal alignment, as none fully meet the requirements for euro adoption.

For media inquiries, contact Benoit Deeg at +49 172 1683704.

Source: ECB 2026 Convergence Report