It’s unclear still if Hungary’s breaking off of talks with the IMF was just political posturing before local elections. The lesson, however, is that the wider world doesn’t really care about local politics. Deal with your debt issues or the markets will punish you — that’s the only way to read the quick response from Moody’s which put Hungary’s Baa1 rating on notice.
So much for Hungary’s success in staying out of the financial headlines. Some encouraging, or at least constructive words from Budapest would be welcome right now, rather than combative, reform-weary retorts. Where exactly does Fidesz this is going?