"Eurozone will do everything to save euro"

A fiscal union and the government as the ultimate guarantee for transactions are a better solution for coping with the crisis than a European central bank, he believes.
B92

Firstly, a fiscal union requires a political union which is not going to happen due to voters resistance in the nothern countries.Secondly,the Eurozone crisis is one of debt insolvency and not budgetary deficits- Ireland and Spain going into the crisis had better public accounts than Germany.

The underlying issue is a structural balance of payments problem between the North and South countries of the Eurozone reflecting the different competitiveness of those economies - and which requires policy measures on both the surplus and debtor side of the equation to close the gap and eliminate the ongoing imbalances.

Simply, Germany needs to write-off a good part of the debt of debtor countries and stimulate its own consumption. Either that or the Eurozone will limp on in a zombie state until it breaks up, to a greater of lesser degree.

Simply imposing austerity on the periphery will not succeed and just postpones the day of reckoning.

Leonidas,

Just want to inform you that Hungary is in the limbo and any time can fall into a state of lawlessness and bankrupcy. There are rumours spreading - most likely unfounded - that the government will freeze the bank accounts of ordinary citizens or that the currency becomes non-convertible. I am not sure, who spreads these rumors - according to some conspiracy theories they come from the government with the goal to bankrupt the country first, than buy it off later and cement them self at least economic ways. I do not know but the fact is the entire establishment in the country has almost nothing to do with the law.

Just a little example. Few month ago I was on a train and it was delayed due catenary being stolen (we-know-by-whom) for over three hours.
Railway (MÁV) denied me any compensation with the reason: "you used Interrail the previous day in Italy". My ticket was domestic and had nothing to do with Italy, however. Their answer: "legally you are right, but we do not want to pay you anything regardless". No kidding. The amount in dispute was a mighty $15. So probably it's not something very difficult to get over with. What is difficult to get over with is the attitude like that and it is spread all over the country. Beginning with small salad at a gas station sold for 1500 Forint (RSD 500), no price tag, continuing with wheel locks put on the foreign cars against the practice (extortion), than the infamous extortion retaurants (there is barely any place in the center which does not try to scam the tourists). And the attitude of the government tops everything.

It is something like that: "I am stronger than you, so I scam you. But don't worry: you still can find someone who is weaker than you and scam the sucker". In that chain of course the weakest people (rentners, homeless, etc.) are ultimately the biggest suckers. The mood on the streets in 2012: "We are more corrupt than any of our neighbors". Indeed, they are. That's why Maszarország is the name of that sorry place ("today-shitty-country" with the tiny sz gy change after "Ma").

People need to change the attitude towards each other. The first step: the government need to change the attitude towards the people. I can't name any government since 1918 which wasn't guilty as charged.

(Ataman, 5 January 2012 13:17)

I have heard all those stories Ataman and I think there is something cooking on the EU agenda.The same sort of stories are circulating in Greece implying the imposition of economic martial law-all bank accounts are frozen-until the authorities decide on the next steps.

As far as Hungary is concerned I am not sure about Orban's moves to change the constitution.I understand the EU bureaucrats are accusing Orban for undermining democracy in Hungary.But then again can the EU lecture any country for lack of democracy?

Leonidas,

Given all the possible evils Orbán represents the biggest one at this moment probably for a single reason: he is not only NOT talented, he is also surrounded by pretty dumb people. Everything they try does fire backwards.

One more example. It looks like there will be some sort of "reform" in the high education and young people will be forced to pay back the cost of their tuition if they go work abroad after they finish the university. The details are not known, but:

1) Imagine, how would Hungary try to mooch money from the best of the country who leave it for United States, Canada, Germany and so on.... if they do not even know the address where to send the demand.

2) What if there is no job in Hungary to work on? For instance there is not a single place in Hungary what would ever sponsor what I am doing.

3) You know of course what will be achieved: the best people laugh at that and leave the country never ever to return - so not a single Forint will be paid. And even worse: who was hesitating before - now is looking 7/24 to get that MSC / post-graduate degree abroad and NEVER EVER return.

Best way to get the country rid of the best performing students. No one ever of these students returned back from even University of Ljubljana. I am not talking about Edinburgh, Stockholm, Delft or any university overseas.

Pretty stupid to say the least.

Ataman

Your problems experiencing are not unique to Hungary.There're thousands of doctors,engineers,IT programmers which are quitting Greece,Spain,Portugal and Ireland in search of a job.Just imagine how much does a doctor's education cost each of those states until he gets qualified.

With regard to Hungary I've read something regarding the financial crisis which reminds me the situation in Greece.

http://www.telegraph.co.uk/finance/economics/8993215/Hungary-faces-crisis-as-traders-fear-bond-debt-default.html

A fiscal union and the government as the ultimate guarantee for transactions are a better solution for coping with the crisis than a European central bank, he believes.
B92

Firstly, a fiscal union requires a political union which is not going to happen due to voters resistance in the nothern countries.Secondly,the Eurozone crisis is one of debt insolvency and not budgetary deficits- Ireland and Spain going into the crisis had better public accounts than Germany.

The underlying issue is a structural balance of payments problem between the North and South countries of the Eurozone reflecting the different competitiveness of those economies - and which requires policy measures on both the surplus and debtor side of the equation to close the gap and eliminate the ongoing imbalances.

Simply, Germany needs to write-off a good part of the debt of debtor countries and stimulate its own consumption. Either that or the Eurozone will limp on in a zombie state until it breaks up, to a greater of lesser degree.

Simply imposing austerity on the periphery will not succeed and just postpones the day of reckoning.

Leonidas,

Just want to inform you that Hungary is in the limbo and any time can fall into a state of lawlessness and bankrupcy. There are rumours spreading - most likely unfounded - that the government will freeze the bank accounts of ordinary citizens or that the currency becomes non-convertible. I am not sure, who spreads these rumors - according to some conspiracy theories they come from the government with the goal to bankrupt the country first, than buy it off later and cement them self at least economic ways. I do not know but the fact is the entire establishment in the country has almost nothing to do with the law.

Just a little example. Few month ago I was on a train and it was delayed due catenary being stolen (we-know-by-whom) for over three hours.
Railway (MÁV) denied me any compensation with the reason: "you used Interrail the previous day in Italy". My ticket was domestic and had nothing to do with Italy, however. Their answer: "legally you are right, but we do not want to pay you anything regardless". No kidding. The amount in dispute was a mighty $15. So probably it's not something very difficult to get over with. What is difficult to get over with is the attitude like that and it is spread all over the country. Beginning with small salad at a gas station sold for 1500 Forint (RSD 500), no price tag, continuing with wheel locks put on the foreign cars against the practice (extortion), than the infamous extortion retaurants (there is barely any place in the center which does not try to scam the tourists). And the attitude of the government tops everything.

It is something like that: "I am stronger than you, so I scam you. But don't worry: you still can find someone who is weaker than you and scam the sucker". In that chain of course the weakest people (rentners, homeless, etc.) are ultimately the biggest suckers. The mood on the streets in 2012: "We are more corrupt than any of our neighbors". Indeed, they are. That's why Maszarország is the name of that sorry place ("today-shitty-country" with the tiny sz gy change after "Ma").

People need to change the attitude towards each other. The first step: the government need to change the attitude towards the people. I can't name any government since 1918 which wasn't guilty as charged.

(Ataman, 5 January 2012 13:17)

I have heard all those stories Ataman and I think there is something cooking on the EU agenda.The same sort of stories are circulating in Greece implying the imposition of economic martial law-all bank accounts are frozen-until the authorities decide on the next steps.

As far as Hungary is concerned I am not sure about Orban's moves to change the constitution.I understand the EU bureaucrats are accusing Orban for undermining democracy in Hungary.But then again can the EU lecture any country for lack of democracy?

Leonidas,

Given all the possible evils Orbán represents the biggest one at this moment probably for a single reason: he is not only NOT talented, he is also surrounded by pretty dumb people. Everything they try does fire backwards.

One more example. It looks like there will be some sort of "reform" in the high education and young people will be forced to pay back the cost of their tuition if they go work abroad after they finish the university. The details are not known, but:

1) Imagine, how would Hungary try to mooch money from the best of the country who leave it for United States, Canada, Germany and so on.... if they do not even know the address where to send the demand.

2) What if there is no job in Hungary to work on? For instance there is not a single place in Hungary what would ever sponsor what I am doing.

3) You know of course what will be achieved: the best people laugh at that and leave the country never ever to return - so not a single Forint will be paid. And even worse: who was hesitating before - now is looking 7/24 to get that MSC / post-graduate degree abroad and NEVER EVER return.

Best way to get the country rid of the best performing students. No one ever of these students returned back from even University of Ljubljana. I am not talking about Edinburgh, Stockholm, Delft or any university overseas.

Pretty stupid to say the least.

Ataman

Your problems experiencing are not unique to Hungary.There're thousands of doctors,engineers,IT programmers which are quitting Greece,Spain,Portugal and Ireland in search of a job.Just imagine how much does a doctor's education cost each of those states until he gets qualified.

With regard to Hungary I've read something regarding the financial crisis which reminds me the situation in Greece.

http://www.telegraph.co.uk/finance/economics/8993215/Hungary-faces-crisis-as-traders-fear-bond-debt-default.html