Lagarde Backs New Hungarian Pm'S Pledge To Join The Euro

ECB President Christine @Lagarde has welcomed incoming Hungarian Prime Minister Peter Magyar's commitment to take Hungary into the euro zone, calling it the natural path for EU members.

"If Hungary goes through the process of integration, the convergence and all of that, it would be a great achievement and it would coincide with what was expected by the founders," Lagarde told Bloomberg TV on Tuesday.

The comments follow Magyar's announcement in Budapest on Monday that his government will work toward adopting the euro, with the entry timeline to be set after a review of the economy. The shift marks a sharp break from outgoing PM Viktor Orbán, who long argued the forint gave Hungary monetary flexibility and that euro adoption would only benefit stronger economies.

Hungary originally planned to adopt the euro in 2007 or 2008 but missed every subsequent target due to deficit, inflation and debt issues. The forint is currently enshrined in Hungary's constitution.