ASSESSMENTS

Hungary's Latest Isolationist Step

Jul 16, 2013 | 15:18 GMT

Hungary's Latest Isolationist Step
Hungarian Prime Minister Viktor Orban at the EU headquarters in Brussels.

(JOHN THYS/AFP/Getty Images)

Summary

Hungary has called for the International Monetary Fund to shut down its office in the country, marking new tensions between Budapest and Western institutions. With this latest move, Prime Minister Viktor Orban wants to emphasize that he will not allow outsiders to dictate his policies. Orban also likely intends to fuel nationalist sentiment ahead of Hungary's 2014 elections. These actions risk harming the Hungarian economy, which is dependent on foreign investment and has been weakened by the European economic crisis. Orban probably will try to compensate for the deteriorating ties with the West by strengthening ties with Russia.

Hungary is risking further economic damage and greater isolation from the European Union....

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