Hungary: Winning Economic Record Should Get it In

Of all the leaps and bounds Hungary has made since turning to the West in 1990, entry into the European Union will be the greatest in the country’s young history.

The European Union is generally happy with the way Hungary is approaching the EU negotiation date in Copenhagen next month. A recent accession report praises the country’s 5.2 percent economic growth and general economic stability.

Within four years of shedding the yoke of Soviet rule, Hungary was able to transform most of its public institutions into private hands.

Foreign investment continues to stream into the country, with some 30,000 international firms establishing offices in the southeast European country. Around 911 billion euro ($918.5 billion) has come into the country through foreign investment. Relations with Germany, in particular, are well-kept.

Around 65 percent of Hungary’s total trade is with the European Union, 45 percent of that figure with Germany. The private sector is booming. The public sector, on the other hand, is suffering.´

Bring your own toilet paper

The foreign companies that set up shop in Hungary enjoy significant tax rebates, meaning the government doesn’t see a lot of the money they produce on Hungarian soil. That’s bad news for the wrecked education and health care system, where patients are advised to bring their own toilet paper and place settings during hospital stays.

A bankrupt public sector is also bad news for regular Hungarians, who have to hold two jobs in order to afford an increasingly expensive society. Corruption continues to be a major concern for Brussels despite recent legislation passed by the Hungarian parliament aimed at fighting fraud, money-laundering and organized crime.

The status of the Roma gypsies also continues to raise eyebrows. The Roma have four representatives in parliament, a major step for this long-discriminated against minority. But wide-reaching anti-discrimination legislation is still missing. The European Union is also eager for Hungary to resolve its disputes with fellow EU candidates Slovakia and Romania over the status of Ethnic Hungarians in those countries.

Hungary’s government, led by recently elected Prime Minister Peter Medgyessy, seems ready to do all it takes to make Brussels happy. Medgyessy, a left-of-center socialist, replaced former conservative Prime Minister Viktor Orban.

Orban presided over his country’s first definitive Western step, when Hungary joined NATO in 1999. Now Medgyessy looks to take the next step. The population, which overwhelmingly supports accession, seems ready for it.