Risks Rise Further

Hungary's short-term political risk profile has worsened further, with persistent inflation and a weak minority government elevating the risks to social stability and policy continuity. In particular, the policy-making process subcomponent score has been reduced to 60.0 from 71.7 to better reflect the Socialist government's inability to pass reform legislation without parliamentary or public support. Going forward, our core view is that policy-making will remain stalled under after the 2010 general election, when the opposition Fidesz party is expected to win an outright

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