Hungary Does Without EU and IMF

Wall Street Journal
August 2, 2010

Inside the Ministry for National Economy here, a sign proclaims a "revolution" in Hungarian politics and declares that the country has regained its "ability for autonomy."

The notice signals the new Hungarian government's determination to set its own economic agenda, even if that costs it the support of the International Monetary Fund and European Union.

That support is the subject of a standoff between Budapest and the two organizations, which recently halted bailout-loan talks, saying Hungary wasn't doing enough to make durable cuts in state spending. The IMF has said it is willing to resume negotiations. But Hungary's Prime Minister, Viktor Orban, has indicated that his country intends to go it alone.

Mr. Orban, who took office in late May after a landslide election victory, has made it clear that he believes Hungary can survive without more IMF and EU aid, if the alternative is having to compromise on his plans to boost economic growth and create jobs.

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