The Hungarian government is due to begin debating a “structural revamp” of the public finances in the coming weeks, which will entail substantial budget cuts. A first reading of the Growth and Stability Programme will be held on the 16th February, and the plans will be finalised by the end of the month. Having spooked the markets last year by turning its back on the IMF and unveiling a 2011 Budget reliant on one-off and time-limited measures, the ruling Fidesz party hopes that the forthcoming announcement will help to enhance its credibility with the market. This update outlines the areas for investors to watch as the debate unfolds over the coming weeks.