European Economy News. No 4, October 2006

Hungary began its transition to a market economy earlier than other Central European economies, with a significant private sector developing well before the communist period ended. After some years of turbulence following the collapse of the Soviet bloc, Hungary began to build on these foundations, implementing structural reforms and stabilisation measures – resulting in an impressive macroeconomic performance by the end of the 1990s. However, in recent years results have been much more mixed and a period of large fiscal slippages is now threatening long-term growth and sustainability. The Government has adopted a new programme to address the situation.

European Commission: DG Economic and Financial Affairs: Country pages: Hungary http://ec.europa.eu/economy_finance/about/activities/countryeconomy/hungary_en.htm

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