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nobody wants to be in charge of solving

That's not the point. The point, for expert candidates who waved off, is getting parliamentary support and not turning a mere tool of MSzP's struggle for survival. (As for Gráf, he is really a desperation candidate: he doesn't havew much clue about or ambitions regarding things outside agriculture.)

those who try propose outrageous social cuts.

That's the only game in town, for the political elites, only the packaging differs. (Thougfh for Fidesz, that includes praising Obama's programme.) They are clueless and uninspired, even though there are domestic voices advocating deficit spending and calling austerity programmes an idiocy. A(t least a) Kirchner would be needed but there aint'.

The problem this is supposed to solve is of course a "recreation of trust on the markets", by complying with the IMF demand of keeping the budget deficit under 3% of GDP (a GDP which is now expected to fall 4-6% instead of 3.5). (This IMF demand is at least loosened relative to the original demand of near-zero deficits.)

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Sun Mar 29th, 2009 at 05:49:32 AM EST
[ Parent ]
So the IMF has adopted the Stability and Growth Pact, now?

They could always raise the marginal tax rate...

Most economists teach a theoretical framework that has been shown to be fundamentally useless. -- James K. Galbraith

by Migeru (migeru at eurotrib dot com) on Sun Mar 29th, 2009 at 05:51:50 AM EST
[ Parent ]
The IMF originally wanted the government to keep to or go below its original long-term plan of 2.6% deficit for 2009, even despite the global crisis. The loosening came after a visit by DSK to Budapest in January, and gave the further worsened external conditions as justification -- I guess the similarity with the Growth and Stability Pact is pure coincidence.

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Mar 29th, 2009 at 06:04:38 AM EST
[ Parent ]
Adding, methinks this new deficit cuts radicalism (Bajnai's plans go well beyond what's projected to be needed to keep below 3% even if GDP shrinks 6%) goes beyond the IMF, and wants to assuage perceived even stronger demands from "the market".

*Lunatic*, n.
One whose delusions are out of fashion.
by DoDo on Sun Mar 29th, 2009 at 06:07:42 AM EST
[ Parent ]
there are domestic voices advocating deficit spending

I mean, counter-cyclical, crisis-time deficit spending.

*Lunatic*, n.
One whose delusions are out of fashion.

by DoDo on Sun Mar 29th, 2009 at 06:01:22 AM EST
[ Parent ]

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