Hungary is headed for an extremely tough year when neither the budget nor GDP will likely meet the government’s already significantly reduced projections. Orbán and Fidesz insist that everything is all right, but their dogged refusal to acknowledge reality only serves to stoke fears that they are not on top of things. While ignorance is one explanation for the government’s self-congratulatory tone, there is another, more rational interpretation: it has yet to find a way to circumvent the constitutional requirement that forbids raising the national debt. Either way, the government’s failure to address the economic problems bodes ill for the national economy’s prospects in the near future.
Policy Solutions' analysis on Hungary's worsening economic outlook can be downloaded from here.
Policy Solutions is a progressive political research institute based in Budapest. It was founded in 2008 and it is committed to the values of liberal democracy, solidarity, equal opportunity and European integration. The focus of Policy Solutions’ work is on understanding political processes in Hungary and the European Union. Among the pre-eminent areas of our research are the investigation of how the quality of democracy evolves, the analysis of factors driving euroscepticism, populism and the far-right, and election research.
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