The rise in MSZP’s approval rating last month proved to be a temporary one, so they face the same problems that they had in the spring.

Fidesz is consciously courting economic players, preparing for an early election. The presidential election of SZDSZ has failed to produce a stable situation in the party.

The National Bank of Hungary (NBH) was criticized by both the Hungarian government and the opposition after increasing the interest rate. We expect the political pressure to increase in the future.

The political environment is becoming less and less advantageous to the government. Fidesz has started a campaign that is aimed at attacking the government on economic grounds.

Economic and political processes in Hungary are extensively influenced by voters’ anti-market and anti-competition sentiments. This has a considerably negative effect on competitiveness

Ferenc Gyurcsány's position has stabilized for the moment, it can only be maintained if he is successful in garnering parliamentary support for the proposals of the minority government.

The new government is not likely to initiate reforms and it will possibly enact popular measures to cater former MSZP voters. Ferenc Gyurcsány's has significantly weakened, but he has no alternative.

Following the referendum the position of the PM has become unstable, the coalition tensions have risen.Hence the risky moves of the Prime Minister in the last days.

While the results of the referendum is a big defeat of the government, reshuffle is not expected in the next few months, but policy changes will follow.

The referendum on 9th March is exceptional, since democratic countries rarely hold referenda on the abolition of point-of-delivery charges for health care and of university tuition fees.

Ferenc Gyurcsány tried to undermine the last push of Fidesz by announcing potentially popular initiatives, while Fidesz tries to win voters in the political centre.

The parties are trying to present the referendum according to their priorities. Whatever the result, major political shift is not expected in the short term.