BUSINESSWEEK/ NEW LINK/ 5 June/ The government is trying to cool the severe negative market reaction after a remark by ruling Fidesz Party leader Lajos Kosa that Hungary had a “slim chance to avoid the Greek situation” and the economy is in a “much worse” situation than the party had forecast spooked them. Kosa was quoted as saying the country was at risk of a Greece-like crisis and European Commission President Jose Manuel Barroso said it was in a “very delicate situation.” “It’s clear that the economy is in a very grave situation,” Peter Szijjarto, spokesman for Prime Minister Viktor Orban, said. “I don’t think it’s an exaggeration at all” to talk about a default. “I’m staggered by these comments,” said Tim Ash of the Royal Bank of Scotland, referring to Szijjarto’s statements. “It’s ridiculous, remarkable and extremely dangerous. What message does this send to foreign bondholders? You will look to protect your investments.” State Secretary Mihaly Varga said: “The comments that have been made about this issue are exaggerated and if they come from colleagues that’s unfortunate.”
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