Hungary
The emerged conflict between Hungary and Slovakia is a direct consequence of the financial crisis and could linger for some time, creating both domestic and foreign policy problems for the PM....
Atrocities at a soccer match in Dunajská Streda/Slovakia lead to rising tensions with Slovakia. Due to the crisis-mandated austerity measures, unions plan strikes. The IMF granted a rescue package....
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....
Far right activism since the autumn of 2006 have increased its potential social base and political playing room. Anti-Semitism and anti-roma sentiment continue to be a major identity-building force....
In the past few weeks Ferenc Gyurcsány’s position has stabilized somewhat. The „spy scandal” will remain the most important political topic in the coming period....
Unexpectedly the Hungarian right-wing and far-right parties and organizations do not reject the Russian standpoint in the Georgian conflict....
The fate of Prime Minister Ferenc Gyurcsány and the minority government will be determined by the two major issues before Parliament this fall: the tax legislation and the budget....
The PM offers a tax cut deal in the following four years, but only in line with the convergence program and only if there is extra income deriving from a much more transparent taxation culture....
The Apollo-affair and the attacks against Hankook reveal the contradictions in the political strategy of Fidesz: the conflict between the opposition position and the pre-government position....
The government will reveal its action plan for Parliament’s autumn session in late August or early September. SZDSZ will decide on whether or not to support the government after they have seen it....
After the Russian-Georgian war general anti-Russian sentiments are likely to rise and companies with Russian interests and future Russian investments will face PR problems in the CEE region....
The rise in MSZP’s approval rating last month proved to be a temporary one, so they face the same problems that they had in the spring. ...
Radical demonstrators perturbed the procession on Gay Pride Day, which was condemned by parliamentary parties. Mr. Gyurcsány failed garner support for his “Hungarian Charta” initiative....
Ferenc Gyurcsány’s position as the head of the government and MSZP has improved. SZDSZ has also strengthened, which could make it a possible ally to FIDESZ in seeking early elections....
Fidesz is consciously courting economic players, preparing for an early election. The presidential election of SZDSZ has failed to produce a stable situation in the party....
While the detailed economic policy of Fidesz leaders cannot be foreseen from their declarations, it became obvious that the next government also will have a tight room for economic maneuvering....
The National Bank of Hungary (NBH) was criticized by both the Hungarian government and the opposition after increasing the interest rate. We expect the political pressure to increase in the future....
The political environment is becoming less and less advantageous to the government. Fidesz has started a campaign that is aimed at attacking the government on economic grounds....
Economic and political processes in Hungary are extensively influenced by voters’ anti-market and anti-competition sentiments. This has a considerably negative effect on competitiveness. ...
Ferenc Gyurcsány's position has stabilized for the moment, it can only be maintained if he is successful in garnering parliamentary support for the proposals of the minority government....