Hungary on the ‘brink of ruin’

[Martinus]

and the cut in spending should be accompanied by tax cuts.

How will that get rid of your debt?

I was wondering the same.

[The Brain]

:nelson  Hungary has economy problems.

[Tamas]

and the cut in spending should be accompanied by tax cuts.

How will that get rid of your debt?

I was wondering the same.

Well, who knows. A huge portion of the hungarian economy is in the grey and black zone because of the huge taxes, so smaller taxes coupled with harsher punishments for tax fraud (altough we already has a tax authority which puts the gestapo to shame) might actually result in somewhat higher income for the state than presently.

And there is also the question of keeping inviting foreign capital to the country. We basically built up Slovakia: the fuckers were smart enough to cut spending and taxes while we kept our socialist heaven and as a result several big factories choosed to deploy in Slovakia instead of Hungary.

But of course I do not actually expect tax cuts. They will need some reserves next year for the elections, so what I do expect is the country recovering a bit this year, debt wise, and in the sense of avoiding bankrupcy, but sinking neck-deep in crap again next year when the "the state will take care of all your troubles" election campaigning will commence.

[Tamas]

:nelson  Hungary has economy problems.

Our Parlaiment did decide on expanding our nuclear power plant though.

[The Brain]

:nelson  Hungary has economy problems.

Our Parlaiment did decide on expanding our nuclear power plant though.

Bomb program?

[Tamas]

:nelson  Hungary has economy problems.

Our Parlaiment did decide on expanding our nuclear power plant though.

Bomb program?

I am not allowed to tell. 

[The Brain]

:nelson  Hungary has economy problems.

Our Parlaiment did decide on expanding our nuclear power plant though.

Bomb program?

I am not allowed to tell. 

Fine. Spill it in TBR.

[Razgovory]

How can Hungary be on the brink of ruin?  That's like Pompey being on the brink of ruin.

[Tamas]

How can Hungary be on the brink of ruin?  That's like Pompey being on the brink of ruin.

You sound like a guy who has never left his parents' basement.

[Syt]

How can Hungary be on the brink of ruin?  That's like Pompey being on the brink of ruin.

You sound like a guy who has never left his parents' basement.

I don't think he's part of the Fritzl family.

[Razgovory]

How can Hungary be on the brink of ruin?  That's like Pompey being on the brink of ruin.

You sound like a guy who has never left his parents' basement.

But it's a first world basement

[Admiral Yi]

The article comments on the msnbc site are positvely disgusting. Americans, you've outdone BBC have your say!

I'm curious which comments irked you.  I just skimmed them and didn't find any that were outrageously boneheaded.  Maybe a few that were medium boneheaded.

As an aside, I know that individual eurozone countries have the deficit caps, is the same true for the EU commission?  Are they allowed to deficit spend?

[Sheilbh]

As an aside, I know that individual eurozone countries have the deficit caps, is the same true for the EU commission?  Are they allowed to deficit spend?

No, not that I know of anyway.

The Eurozone stuff isn't set in stone, I think it's largely guidelines and it's largely enforced by the European Central Bank, which like any central bank can release €7 trillion, as the Fed did a week or two ago, for various measures.  I think the EU have declared that they won't allow the bankruptcy of any member state to happen, through the ECB taking on a less scary IMF like role for member states - from what I understand.

The European Commission has little role in producing the European budget which is decided by the Council of Europe (that is the 27 heads of state/government), rather they administer and use the budget within broad guidelines.  I believe the EU's budget is set two or three years in advance because, unlike national government, it doesn't really have to respond to crises.

The EU, effectively pays for the Common Agricultural Project, the administration of the bodies in charge of making sure the single market's operating, the courts, the parliament, internal measures such as consumer protection, environmental action and long-term infrastructure development and investment, as well as some foreign aid.  Agriculture's about 45% and infrastructure's about 30%.  Very little of that would really be increased or decreased in response to a recession, the most important aspect of it is, after all, that it's a stable investment.

[Ed Anger]

Hungary: on the brink of ruin since Mohacs.

[Tamas]

Hungary: on the brink of ruin since Mohacs.

now that you mention it...