Friday, 13 July 2012


Does this make sense?

The economic policy of the Fidesz Government in Hungary has always been Greek to me (pun only half-intended). Above all, why is it holding out as it does against some sort of loan or bail out?

For conspiracy theorists – and those who believe that governments are after only one thing, power and holding on to it at all costs – Mujtaba Rahman, an analyst at the Eurasia Group, offers an attractively plausible insight –
International lenders will probably request changes including in the financial-transaction tax, the 2013 budget, property and wealth levies, as well as the personal income taxes, Rahman said. Orban’s ability to meet the conditions of an agreement will be 'severely constrained by the 2014 elections as the government’s popularity falls, according to the note.

'This means the government does not really want a deal unless there is little or no chance of surviving financially without it,' Rahman wrote.

(my italics)
Eurasia Group is a leading global political risk research and consulting firm. 

I see it like this: the sacrifice the well-being of the Hungarian people for the off-chance of re-election in 2014, whoever (and whatever services/institutions) this drives to the wall. 


Balazs, E. (2012) Hungary's 'outlandish' policies threaten IMF deal, Eurasia says, Bloomdberg, 12 July

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