Hungary’s rose-tinted glasses

"Orbán faces criticism not only from the left – as to be expected – but from the centre-right too.

As Lajos Bokros, former finance minister, said on Sunday, when launching what he termed a new 'genuine' centre-right party called Modern Hungary Movement: 'Without lending and investment, there will be no growth in Hungary. Investment is at 16 per cent of GDP. This is insufficient to sustain the economy.'

Critics on both sides also agree that Orbán is desperate to get the budget deficit below 3 per cent less out of ideological belief – he wanted, after all, to spend his way into growth when taking power originally in 2010 – but more to ensure there are no obstacles to the free flow of EU funds into Hungary – one crucial source of funding given that net foreign investment is at zero – in spite of examples such as Lego and Stadler.

The headline figures, for now, look good, and coupled with the current global market confidence, analysts expect the central bank to shave yet another 25 basis points off the base rate to a new record low of 4.75 per cent. But when, rather than if, that global confidence fades, Hungary will be in the firing line: Orbán, who is now an ardent supporter of the 'historical' Hungarian churches – must just be praying the global mood stays buoyant until the next elections – due in a year’s time at the latest."