CEE: Political noise rises as the global recession hits
Overview:
While governments in both Poland and Slovakia remain popular despite sharp slowdowns in growth, political turmoil has broken out in both Hungary and the Czech Republic. Governments in both countries were already weak and could count only on minority support in their respective parliaments. However, both the Socialist Party in Hungary and the ODS-led coalition in the Czech Republic had survived nevertheless like this for many months. This week, however, saw the resignation of the Prime Minister in Hungary and the defeat of the ruling coalition in the Czech Republic in a vote of no-confidence. In both cases, early elections are not inevitable and caretaker governments may instead be formed. However, these developments come at a difficult time as both countries struggle with the global economic crisis.