Prime Minister Peter Magyar is set to unveil his 2027 budget on Monday, with expectations running high in the market that he can show a path to steer the country toward the euro area.

The premier, barely half a year into the job after winning April’s election, will present the fiscal plan to parliament at 1 p.m. in Budapest. Magyar said the speech will probably be his most significant so far, after a string of fiery weekly keynote addresses in the chamber since defeating Viktor Orban in a landslide.

The budget plan will give the first detailed view into how Magyar’s new government plans to meet its ambition of cutting the deficit from more than 7% of gross domestic product to the 3% level needed to meet the criteria for joining the euro by the end of his four-year term in office.

The outperformance of Hungarian assets this year has raised the bar for Magyar to deliver a positive surprise for the market, though the “overall narrative is clearly moving in a positive direction,” according to ING Bank.

“Hungary remains the key CEE story, with by far the largest long positioning across asset classes, driven by the idiosyncratic post-election narrative and prospects for euro adoption,” ING analysts Peter Virovacz and Frantisek Taborsky wrote in a note last week. “The primary market focus is on fiscal policy and the draft budget for next year.”Magyar is promising to deliver more money to families, Hungarian businesses, pensioners, education and healthcare, while reducing outlays on the state apparatus, according to a social media post at the weekend.

He has already started reallocating resources from tycoons connected to Orban’s regime and plans to introduce a wealth tax to make public finances more equitable.

Magyar’s pledge to ditch the forint in favor of the euro has turned it into the best-performer among emerging-market currencies in Europe this year. The Hungarian currency has gained almost 6% against the euro in 2026, while the Polish zloty and the Czech koruna have weakened.

In the bond market, Hungary’s local-currency yields trade almost a full percentage-point below higher-rated Poland. Toward the end of Orban’s term, Hungary and Romania shared the two highest borrowing costs in the European Union.

Monday’s fiscal announcement will also have repercussions for the central bank in Budapest, which will meet on the following day to decide on interest rates.

Policymakers paused their easing in September to give themself time to consider the budget. ING said the central bank will probably still play it safe and remain on hold this week. More easing may follow in December and next year, according to the note.

Some strategists still see room for Hungary’s assets to gain despite the already heavy positioning. The debt agency in Budapest says a credible euro adoption plan offers a reliable route toward the lower yields prevailing in the common currency area.

Besides the budget and euro plans, the forint will also get a boost as Hungary starts receiving more than €16 billion ($18 billion) in EU funds that were frozen due to Orban’s policies and released after Magyar’s victory, said Simon Quijano-Evans, senior EM strategist at Macro Hive Ltd.

The forint has the potential to drift toward stronger levels around 355 per euro in the coming weeks compared with around 363 currently, Quijano-Evans said.

A swift move by policymakers to get started on the euro accession path would produce a “self-fulfilling” positive trend, resulting in further appreciation pressure for the forint, the Macro Hive analyst said.