This Update answers the questions that we received during our Drop-in on Hungary’s election result. (An on-demand recording is available here.) The primary implication of the opposition Tisza party’s resounding victory will be a shift in Hungary’s foreign policy towards alignment with the EU. The victory has also improved Hungary’s growth prospects, although most of the gains are likely to materialise in the medium term. The key thing to watch in the coming weeks is how quickly Tisza pushes through institutional reforms, which would help to sustain the positive financial market reaction seen today.
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