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EV tariffs, European election results, May inflation

The EU’s new tariffs on EV imports from China announced this week could provide a boost to economies in Central and Eastern Europe by pushing Chinese carmakers to set up more factories in the region. While Viktor Orban’s close relationship with China makes Hungary stand out as one country that could benefit in particular, the strong election results for the main opposition party in Hungary this week cast some doubts on whether this is something that is set to last. Elsewhere, the latest inflation data suggest interest rate cuts will be delivered in Czechia, Hungary and Romania at their upcoming central bank meetings.

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