The European Central Bank has published its 2026 Convergence Report on the Czech Republic, Hungary, Poland, Romania and Sweden, finding only limited progress toward euro adoption since 2024. The report says the five economies have remained resilient to external shocks, but convergence with the euro area is still being held back by geopolitical disruptions, mixed inflation performance, weaker fiscal positions and the fact that none of the countries has national legislation fully compatible with the legal requirements for adopting the euro. On the economic criteria, three of the five countries recorded 12-month average inflation above the 2.7% reference value: Romania, Hungary and Poland. In 2025, Hungary, Poland and Romania also exceeded the fiscal deficit reference value of 3% of GDP, and European Commission projections show Poland and Romania rising above the 60% debt-to-GDP reference value in 2026. Excessive deficit procedures now apply to Hungary, Poland and Romania, with none projected to bring its deficit below 3% of GDP before the end of 2027. None of the five currencies participates in the exchange rate mechanism ERM II, some have seen sizeable fluctuations against the euro, and long-term interest rates were above the 5.1% reference value in Poland, Hungary and Romania. The ECB also points to weaker institutional quality and governance as a constraint, particularly in Hungary and Romania.
European Central Bank2026-06-24
European Central Bank reports limited progress toward euro adoption with legal gaps in all five countries
The European Central Bank’s 2026 Convergence Report finds only limited progress by the Czech Republic, Hungary, Poland, Romania and Sweden toward euro adoption. Inflation remains above the reference value in Romania, Hungary and Poland, fiscal positions have deteriorated in most countries, and none of the five has legislation fully compatible with euro adoption requirements.