Hungary’s incoming Tisza government has made positive steps with the announcement of key cabinet posts, including foreign and finance ministers. Political developments elsewhere in the region provide grounds for concern though. Fractures within Romania’s ruling coalition will make it even more difficult to pass the fiscal tightening needed to rein in the large twin deficits. Meanwhile, Poland’s hard activity data for March suggest that it shrugged off the early stages of the energy price shock. And the Q1 GDP figures for Central Europe that will start being released from next week are likely to point to solid growth.
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