TelePolis: Hungary -Summer of Discontent - by John Horvath

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Hungary -Summer of Discontent - by John Horvath

At the beginning of this month, the first phase of Hungary's austerity measures came into force. Energy and utility prices all rose, and consumer prices have all been creeping up little by little as well. Yet this is only a taste of things to come. The more painful parts will come toward the end of the year, that is, after the municipal elections which are slated for the beginning of October.

At this stage, what is of concern is that the government, as with past governments, is not tackling the problem at its source. Hungary is struggling with an enormous debt, the highest in Europe, as well as rising inflation and a falling GDP. Unless something drastic isn't done soon, warn experts, the Hungarian economy could collapse. Not only this, but the chances of Hungary joining the eurozone between 2010 and 2013 is fading fast. As if to add insult to injury, other new members states from the region, which prior to the fall of communism were behind Hungary in economic terms, are set to soon join the eurozone.