Key Political Trends: Half-success: Budget deficit aims 3%; Restricting the jurisdiction of the Constitutional Court; Ferenc Gyurcsány’s two-front battle against Fidesz and the MSZP leadership

Hungary’s draft budget for 2011 aims to keep the deficit at less than 3% of GDP, meeting the Maastricht criteria for euro adoption for the first time since 1995.

While currently it appears to be a success story from an economic and political point alike, the introduction of the bank tax presents significant risks already in the medium term.

Hungary’s governing Fidesz party initiated an unprecedented effort October 26 to strip the Constitutional Court – Hungary’s final authority on legislative questions – of a number of powers.

István Tarlós, the governing Fidesz party’s brand-new mayor of Budapest, announced plans for a swift and wide-ranging review of private companies’ ownership contracts in city utilities.

Unexpected crises are moments that can make or break political leaders. They either flounder around for solutions or rise to the occasion.

On October 4, a waste reservoir at an aluminum plant burst its banks, unleashing some 700,000 cubic meters of red sludge. The government has responded to the crisis in the most popular way possible.

Fidesz, which leads the strongest government since 1990, has reached all of its political goals by extending its power over most municipalities.

Political Capital's analysis on attitudes toward migrants in Hungary, Bulgaria, Romania, Slovakia, Croatia, the Czech Republic, Slovenia and Poland.

Barring a catastrophe on the scale of an extraterrestrial invasion, the governing Fidesz party will demolish all comers in the 3 October municipal elections.

Fidesz’s changes to the election law have made it hard for politicians to run for Budapest mayor.

Although Hungary currently has no urgent need for outside financing, the IMF loan served as a safety net should the country find itself in a tight spot.