The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Hungary: New government says IMF plan fits too tightly

Fidesz party seeks to expand state spending limits; Analyst warns on dangers of political rhetoric

Hungary’s centre-right Fidesz party cruised to power in the first round of April’s parliamentary elections after securing more than 50% of the popular vote. And as Euromoney went to press it was seeking a two-thirds majority in the April 25 second round that would enable it to make sweeping changes to the constitution.

But the new administration has its work cut out in convincing the global financial community that it will show the type of fiscal rectitude necessary to impress the IMF and other lenders that bailed the country out to the tune of $27 billion in late 2008.

Fidesz leader Viktor Orban, who was prime minister from 1998 to 2002, returns to power with Hungary bogged down in a recession in which GDP shrank by 6.3% last year. Unemployment is testing new highs at 11.4%. Fidesz has touted a fight against corruption, together with job creation, simplification and lowering of taxes, and tighter financial system regulation, as its economic priorities. But there were early signs that it would seek to run a much larger budget deficit in 2010 than the one agreed with the IMF under outgoing premier Gordon Bajnai.

Mind the gap

In the immediate aftermath of the party’s first-round victory Orban claimed that Hungary’s IMF-approved budget deficit target of 3.8%

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree