Fiscal Policy
The results of the first meeting of the Slovenian and the newly appointed Croatian PMs exceeded the preliminary expectations. It demonstrated, that the two politicians can find the common language....
The new CEDB-led government still enjoys the confidence of 72% of the citizens, but the freshly announced cut backs to curb the budget deficit could erode that support fast....
The latest attack against a Roma family in Kislétamoved the Roma issue and public security back to the agenda. Meanwhile, conflicts are expected within the MSZP over the strict 2010 budget....
According to the agreement between Romania and the IMF, the budget deficit could rise to 7.3% instead of 4.6% as originally expected with the government facing increasing difficulties in paying public...
Donald Tusk’s cabinet in Poland is the most stable coalition in the region at the moment, which, in part, can be explained by the relatively slight effect of the crisis on the Polish economy. Donald T...
The rising Polish budget deficit pits the PM and the President against each other. Disagreements and political fights endanger the curbing of the deficit....
The next government will be dominated by center-right CEDB, that won 116 seats in the 240-member Parliament on the 5th July elections. It will have a tough time, as the deficit is expected to grow....
Budget deficit to grow due to flood damage, and continuous debate on the ratification of the Lisbon Treaty....
The revision of budget projections for 2009 is an important step to guarantee the stability of the public finances and the confidence of foreign investors, however steeper cuts will be needed....
Four GCC states signed a pact on 7 June creating a monetary union. It comes as a confidence-building measure after the shock decision by the UAE to not be part of it....
Oman has simplified its corporate tax laws to woe foreign investors, offering a fixed 12 percent tax on all corporations working in Oman....
The Polish authorities remain committed to the 2009 state budget, primarily by cutting expenditure at the state level, but lacking the will to act firmly, a higher budget deficit is expected....
The Emir dissolved the parliament and accepted the resignation of the government. Polls indicate a similar parliament. Plans to pass the economic stimulus package as an emergency measure emerge....
Countries of the region had to settle in for a long and deep economic slowdown. The political fallout may be the most severe in where loosening the budget is not an option....
The so called “EPP format” consisting of CEDB, UDF and DSB appears to be an ineffective form of oppositional cooperation....
The financial rescue package has restored the confidence in the
Hungarian economy and currency in the short run. However, there is a risk that the crisis will amplify the existing deficiencies....
The expected vote of no confidence most certainly will not pass. The majority remains stable and the opposition does not have the needed 121 MPs to depose the government....
The short-term perspective for the Cabinet remains stable. The unity of the parties of the Government will remain firm. Possible destabilizing factor could be the the forthcoming congress of the BSP....