Hungary Seeks to Avoid International Isolation in 2015

Next year will bring a number of complications for the Hungarian government, both at home and abroad. For the first time since taking power in 2010, Hungarian Prime Minister Viktor Orban is dealing with persistent opposition from social groups and trade unions. Budapest is trying to reduce its fiscal deficit and, in pursuit of this goal, will continue to apply special taxes to some sectors of the economy, including supermarkets and tobacco companies, while making spending cuts. These changes will lead to further protests, though they will not threaten the Orban government's hold on power.

Abroad, Hungary's relations with the United States will continue to cool off because of accusations of internal corruption and Hungary's political and economic ties with Russia. Budapest must also deal with its increasingly distant relationship with the European Union, which comes at a time of growing uncertainty over Russia's future moves. Hungary cannot afford to completely sever ties with its Western partners, and its main challenge for 2015 will be to maintain its current domestic and foreign policy trajectories without completely alienating these allies.