Péter Ákos Bod: The new government legitimizes the Orbánisms

Bod Péter Ákos, a former central bank governor, analyzes Hungary's medium-term economic policy and budget plan, praising its transparency but criticizing its ambition. He notes the projected budget deficit reduction to 4.9% for next year, yet expresses concern over the less ambitious targets post-2027. He emphasizes the need for a more decisive deficit reduction, which may impact economic growth, particularly in the public sector. While EU funds could bolster demand, he warns against outdated measures and excessive centralization in government policies. He highlights the significant tax breaks and their implications for the budget, urging caution against paternalistic policies that could hinder economic progress.