Five EU Countries Stay Outside the Euro, Keeping Currency and Borrowing Risks Alive

By eEuropa.Blog in 2026 Convergence Report, borrowing costs, Bulgaria, Czechia, debt, Economy, Euro, european commission, Fiscal Policy, Hungary, inflation, Poland, public deficits, Romania, Sweden

Brussels, 2 August 2026

The next enlargement of the euro area is not yet in sight. The European Commission’s 2026 Convergence Report concludes that Czechia, Hungary, Poland, Romania and Sweden do not currently meet all the conditions required to adopt the single currency.

The five countries present very different economic profiles. Czechia and Sweden already comply with several of the principal numerical thresholds, while Hungary, Poland and Romania continue to face larger gaps involving inflation, public deficits, debt or borrowing costs.

Yet all five share two decisive obstacles: none participates in the Exchange Rate Mechanism II, and none has fully aligned its central-bank legislation with EU requirements. This means that euro-area enlargement has effectively stalled after Bulgaria’s accession in January 2026.

What remaining outside the euro means in practice

For companies trading or investing in these countries, the continued use of national currencies preserves exchange-rate exposure, conversion costs and differences between domestic monetary policy and decisions taken by the European Central Bank.

The economic distance from euro adoption also varies considerably. Sweden and Czechia are comparatively close on inflation, public finances and long-term interest rates. Poland remains constrained mainly by its fiscal deficit, while Hungary and Romania face broader combinations of inflation, fiscal and financing pressures.

The full analysis compares the five countries across inflation, government deficits, public debt, interest rates, ERM II participation and legal readiness—and explains which are closest to membership.

Which EU countries are closest to adopting the euro?

Read the full eEuropa analysis of the economic, fiscal and institutional barriers keeping five Member States outside the euro area.

Read the Free Article on eEuropa

Five EU Countries Stay Outside the Euro, Keeping Currency and Borrowing Risks Alive

What remaining outside the euro means in practice

Which EU countries are closest to adopting the euro?

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Five EU Countries Stay Outside the Euro, Keeping Currency and Borrowing Risks Alive

What remaining outside the euro means in practice

Which EU countries are closest to adopting the euro?

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