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Business analyst worries about Hungary’s marginalisation within the EU

June 15th, 2023

An independent investment analyst fears that by alienating EU institutions, Hungary may find itself on the periphery of the community with frightening consequences for growth and living standards.

Index reproduces an essay by Viktor Zsiday, an analyst at the Hold investment fund where the business expert criticises the idea that Hungary can make it without EU funds. In his analysis, which originally appeared on the Hold blogsite, Zsiday admits that the loss of those transfers would not be fatal in itself but would come with side effects that might entail very serious consequences. Hungary’s membership in the European Union is a basic guarantee for investors, he argues, and if they start believing that Hungary will not remain a member, a massive flight of capital might follow. As a matter of fact, he doesn’t believe that Hungary will withdraw from the community, but the worsening of relations with EU institutions might lead to a ‘de facto Huxit’, i.e., the country becoming increasingly marginalised within the EU. If that happened, he concludes, rather than becoming a second Switzerland, Hungary would find itself ‘between two worlds’, somewhat like Serbia or Montenegro.

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