- portfolio.hu Online gazdasgi jsg ANALYST VIEW - Hungarian politics drives out fiscal tightening - Calyon Friday, 24, March 2006 08:36:00 AM Ahead of the April elections neither of Hungary's two main political parties are talking sense when it comes to fiscal policy, Calyon has said on Friday. Rather than laying out a medium term strategy to cut the ballooning budget deficit, which this year is heading for 7-8% of GDP, “they are trying to out-do each other by enticing the electorate with promises of tax cuts and spending giveaways." “The FX market, particularly in the past couple of weeks, is waking up the fact that there is no such thing as a free lunch when it comes to fiscal policy, with the HUF being punished accordingly." Central bank (NBH) Governor Zsigmond who Jrai, has already sounded dovish on Monday, following a rate hold decision by the Monetary Council, launched on Thursday into another critique of the finance ministry's lack of zeal. 2006.03.23 14:44 Hungary cenbank Governor says budget gap causes forint volatility “Admittedly this has been an on-going theme for many months but sooner or later the NBH will have to compensate for a lax fiscal policy with a tighter monetary stance," Calyon said. The...