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« A new economic plan? | Main | What happened to the Hungarian forint and why? »

June 07, 2008

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New World Order

There will be no early election because it means JOB losses to SZDSZ and MSZP MPs. It also means a loss of profit making opportunities (see for example to whom wind farm licenses have been granted over the last 4 years).

Having said that, unlike you, I believe the impetus to change the PM is growing stronger on a daily basis. The MSZP is not full of long term thinkers who have any understanding of the Hungary's current and long term problems. They, like most politicians, want easy solutions. The PM is a hard solution to say the least.

My guess is that the PM will "resign" sometime in the fall, and a goodsocialist will replace him. The MSZP strategy will become more populist (see, Veres is already talking about changing the inflation objective-a horrible idea). SZDSZ will "object" to the change in strategy, but enough of their supporters will find an excuse to vote with the Government to keep the government slouching along to both political and economic abyss.

I spend a lot of my professional time in other CEE countries. It is shocking to see how issues that are intractable in Hungary, are being addressed (albeit slowly) in other countries, and while Hungary looks inwards others look outwards. Talk to serious foreign investors looking at the region, and almost every country is being considered for serious foreign investment (save Hungary). Poland, by all statisitcs, is poorer than Hungary on GDP/capita, but go to any 2nd tier Polish city and you will see city much more dynamic than any Hungarian city other than Budapest. Hungary is becoming more irrelevant by the day and turning this around is a task that I don't believe any of the exisiting political parties is capable of effecting.

Eva S. Balogh

NWO: "My guess is that the PM will "resign" sometime in the fall, and a goodsocialist will replace him."

Obviously, our "guesses" are diametrically opposed to each other. I actually think that Gyurcsány's position within the party is stronger now than any time before.

"SZDSZ will "object" to the change in strategy, but enough of their supporters will find an excuse to vote with the Government to keep the government slouching along to both political and economic abyss."

Well, again, we will see what SZDSZ will do. As opposed to you, I don't think that most SZDSZ politician's chief concern is jobs. Much more so the fate of the party and their own political careers. Early elections are not to their advantage. But, as I said, I can imagine even a split within the party. Last night I took a look at ATV's Híradó and when Kóka spoke the Fodor supporters sat there absolutely stonefaced, and they didn't clap When Fodor gave his speech, the same thing happened on the other side. I don't see how these two goups will get together.

As for the government "slouching along," it seems that more legislations were passed last month than in the three months previously. I am not as pessimistic as you are.

Te Jó Ég!

"more legislations were passed last month than in the three months previously"

Szóval, egy hónap bürokratikus aktatologatás folyik a kormány által.

Eva S. Balogh

TeJoEg: "'more legislations were passed last month than in the three months previously' Szóval, egy hónap bürokratikus aktatologatás folyik a kormány által."

First, I have to ask you to use English. This is an English-language blog. Second, the legislations must be brought to the House and voted on. This is not simply a bureaucratic matter.

NWO

BTW, when I said "jobs" what I meant was their own political careers. We agree on this. With their political positions comes often (not always) financial benefit. This applies as much to FIDESZ as to SZDSZ and MSZP.

I would be happy for Gyurcsany to last out his term if he used the time to undertake further really bold reform. I just do not see this possibility as likely given the lfetish, populist leanings of the party. I fear he rather go along with this flow and stay in power than do something really useful. Hope I'm wrong.

Eva S. Balogh

NWO: "I would be happy for Gyurcsany to last out his term if he used the time to undertake further really bold reform. I just do not see this possibility as likely given the lfetish, populist leanings of the party. I fear he rather go along with this flow and stay in power than do something really useful. Hope I'm wrong."

Well, in this case we agree, but I'm not so worried about his colleagues in the party but rather about Fidesz. Orbán may say all sorts of things to university students and businessmen, but the spokesmen of his party keep going on with the same old populist message. And the people very much like to hear that message.

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