To keep the budget within EU mandated limits, the government has introduced new austerity measures after admitting that its pessimistic growth projections were in fact wildly optimistic. It is becoming apparent that like its predecessors, Fidesz has given up any notion of implementing major reforms before its term expires in 2014. Instead, it will implement patchwork solutions to react to immediate problems, such as the movements of the deficit. Unfortunately, it also follows that tinkering with the rules of democratic elections will have a greater impact on the election outcome than economic policy. This sad insight is already reflected in the government’s priorities.

The entire analysis can only be reached for our subscribers.