Authors

John Gould¹; Gál Zsolt²;  ¹ Colorado College, United States;  ² Comenius University,

Discussion

Contemporary Hungary has a long history of confounding the expectations of liberal political economists. Despite high levels of party-state capture, economic performance has remained relatively robust. Earlier scholarship has resolved the puzzle by pointing to the benefits of EU membership, and most notably annual cohesion fund transfers reaching up. to 3.5 % of GDP.  Recent decision by the European Commission, however, have withheld these and other funds creating a significant fiscal crisis for the Hungarian government. The paper will examine how Hungary has coped with this crisis and evaluate its impact on Hungarian politics and Hungary's relations with the EU.