Hungary: The Government Seeks to Strengthen Its Position Before Key Elections

As Hungary gets ready for its spring 2014 general elections, the government of Prime Minister Viktor Orban is preparing with some controversial measures. On Nov. 5, the Hungarian parliament approved a new relief package for debtors with foreign-denominated mortgages, and on Nov. 6 Orban urged Hungarians living abroad to use their recently acquired voting rights in the upcoming elections, which will be held in April or May.

With a divided opposition and projections for modest economic growth in 2014, Orban's Fidesz party is likely to perform well. However, Budapest's relief measures are expensive and will likely strain Hungary's finances and create additional tensions with foreign companies and the European Union.