Austerity Has Helped Hungary Survive The Recession.

THE ECONOMIST/
"The government has trimmed public spending by fully 3.8% of GDP this year, with most cuts falling on social spending and public-sector pay. These cuts came on top of earlier ones that reduced the budget deficit from 9.2% of GDP in 2006 to just 3.4% in 2008. More are on the way. The Socialist government, led by Gordon Bajnai, wants to chop an extra 1.7% next year to keep the deficit within the IMF-approved limit of 3.8% of GDP. It has also set up an independent fiscal council to monitor compliance with budget-balance targets.
The combination of these cuts and a big IMF loan is having a marked effect. The threat of a run on the currency has receded."

Hungarian Prime Minister Warns Ambassadors Of Social Crisis.

From the Budapest Times.