LEX Country hits crisis. International Monetary Fund arrives. Government, under IMF tutelage, collapses amid riots. New government forms but also struggles over IMF terms. Such are the problems of governing in an economic crisis. It was Latin America’s story in the 1980s, then east Asia’s in the 1990s. Now it is central Europe’s turn, with Hungary playing the latest role of IMF victim after its $25bn bail-out last year.
Still, prime minister Ferenc Gyurcsány’s decision to quit is welcome in many ways. Seen as a political dead man, his potential successors from within his governing Socialist party are all technocrats. However, the Socialists lack popular support and a majority in parliament. At best, the new government will muddle through until elections next April. It may well collapse before. Fidesz, the largest opposition party, has already called for an early vote. Meanwhile, required economic adjustments are being delayed.
