The decision of the Fidesz-led municipal government to unilaterally terminate a contract with French Suez Environnement, minority owner of the municipal water works in Pécs raise political risks.

The break-up of the Budapest MSZP-SZDSZ coalition will not have a tangible effect on the passage of the 2010 budget, a majority of the SZDSZ faction in Parliament is expected to support the budget.

In the coming period, the government’s success depends on the passage of the 2010 budget, fundamentally accepted by international investors, as well as adherence to key 2009 budget figures.

In light of key figures the 2010 budget is not going to fall prey to the upcoming election campaign; it is a tough austerity budget proposing to cut spending to the tune of HUF 400 billion.

Parliamentary elections to be held in the spring of 2010 carry constitutional and political risks due to an outdated election system.

The dissolution of the Hungarian Guard may radicalize and mobilize the far right.

With the passage of the tax bill, the chances of early elections in Hungary have diminished. Having implemented almost all components of a short-term crisis management program, it is now in a vacuum.

Major conflicts are ahead, and the government's fate hinges on the tax bill vote in Parliament.

The dissolution of the Hungarian Guard could be an efficient tool for the law enforcement bodies to fight against extremism in Hungary.

MSZP suffered a staggering defeat in the mayoral elections of Pécs, and that can be seen as an indicator to the EP elections.

The flight of capital from real estate funds is expected to persist and accelerate. Banks’ eminent interest is to prevent the meltdown of the mortgage market.

The new Bajnai government's program was well received, but it can alter public opinion for the worse before the European parliamentary elections.