Euro outsiders not making much accession progress, ECB says

Euro outsiders not making much accession progress, ECB says highlights the European Central Bank’s view that EU countries outside the euro area have stalled on convergence steps. In a biennial report released on June 24, the ECB said Denmark is the only EU member with a specific legal exemption, while others must adopt the common currency but face no penalties for not meeting deadlines. The report finds that even Hungary, the most active candidate, does not meet key criteria. It notes deteriorating public finances since the 2024 Convergence Report and cites rising debt-to-GDP ratios in some countries. The ECB says Hungary’s debt and interest rate levels are the highest among the five prospective members—Czech Republic, Hungary, Poland, Romania, and Sweden—and highlights issues including a non-compliant central bank law, higher corruption concerns, and structural challenges linked to ageing and labor-skill mismatches. It references promised alignment by 2030.