Difficult Times Ahead of Hungary

Created: 16th February, 2010 12:43 | Last updated: 16th February, 2010 16:54	print	send

According to the OECD country report Hungarian GDP will decrease by 1% this year, while the budget deficit might reach 4.1%, much higher than the 3.8% the government planned. The latest Credit Suisse risk assessment report puts Hungary in the third place. Despite of the giant EUR 20 billion loan by the International Monetary Fund and the European Union, Hungary is still the third from the bottom on the risk list, ahead of only debt laden Iceland and near bankrupt Greece. Hungary got into this position due to its extremely high state debt, and the indebtedness of its citizens and companies, and because the majority of the loans were taken in foreign currencies.
It's not surprising that Tibor Navracsics warned about the difficult times ahead of Hungary, saying you cannot get over them without faith in the future. The parliamentary group leader said Fidesz needs strength provided by the voters support to overcome these difficulties. "More strength, however, in politics does not equal more rights, but more responsibilities. The stronger we are, the more responsible we should be", he said.