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Hungary

 Flag of Hungary

Last reviewed: 14 October 2009

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HISTORY

Hungarians are deeply attached to their national, cultural and linguistic heritage. Migration rates, within Hungary as well as overseas, are low.

Longer Historical Perspective

The ancestors of ethnic Hungarians were the Magyar tribes, who moved into the Carpathian Basin in 896, conquering the people already in the region. Hungary became a Christian Kingdom under St Stephen in the year 1000. Much of Hungary fell under Turkish domination from the early 16th until the late 17th century. Thereafter, the country came under Habsburg rule. This lasted until 1918 – although from the establishment of the dual Austrian-Hungarian monarchy in 1867 onwards, Hungary enjoyed broad autonomy and a golden period.

Recent History

Hungary was on the losing side of both World Wars. At the end of the first, Hungary lost two-thirds of its territory under the 1920 Treaty of Trianon, leaving large numbers of ethnic Hungarians in Romania (c. 1.5 million), Slovakia (c. 550,000), Serbia and Montenegro (c. 350,000) and the Ukraine (c. 150,000). After the Second World War, the Communists gained complete control by 1948, despite the low level of support for Communism in Hungary. Stalin's death and Khrushchev's denunciation of him brought about a crisis in Hungary and led to the 1956 Uprising, which was suppressed by Soviet troops. After an initial period of oppression, from 1961 the new Communist leader, Kadar, instituted a platform of national reconciliation and then in 1968 introduced new radical economic reforms unparalleled in any other communist country. These led to a gradual improvement in living standards, a relaxation of the domestic atmosphere and improved relations with the West. But there was no parallel relaxation of the Communist grip on political life.

Post-1989

Hungary played a key role in the fall of Communism in 1989 by opening its borders allowing East Germans to enter Austria. Since then it's transition to parliamentary democracy has run smoothly. The first democratic elections after the collapse of communism were held in March/April 1990. Subsequent elections were held in 1994, 1998 and 2002, with centre-right and centre-left coalitions being elected in succession, each serving a full 4-year term.

After the change of regime Hungary quickly embarked on a programme to institute a free market economy. Privatisation got underway more quickly than in many transition countries. There was, however, a macro-economic downside. In March 1995 the then-Socialist government was forced to implement an austerity package (the Bokros package) to address structural problems. This was in reaction to a huge rise in the trade/government deficit and a surge in inflation.

During the late 1990s, the Hungarian economy reaped the benefits of those measures. As a result of the global economic crisis, Hungary's economy has turned into a recession. This year a negative growth of 5-6% is expected. Unemployment is projected to increase from the current 7.8% to 9% this year, and inflation is projected to decrease from 6.3% to 3-4% in 2009. Nearly 90% of GDP is now generated by the private sector compared with just 10% in 1990. Hungary is concentrating on structural investment, and has a higher skills-base than most of its neighbours. Exports have steadily risen since 1993; over 75% of trade is now with the European Union 

However much needed structural reforms have not been tackled  Attempts by the government to reform the health service were dropped after a referendum in March 2008 showed strong public opposition to paying for health services.  Tax rates and tax avoidance are high.  Hungary's economy is small, open, and therefore vulnerable to the impacts of the global financial and economic crisis. The government secured an IMF loan in November 2008 to prevent speculators making a run on the forint.

BBC News Country Timeline: Hungary

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Contacts

Hungary

Address:

Embassy of the Republic of Hungary
35 Eaton Place
London SW1X 8BY

Consular Section
35B Eaton Place
Lonson SW1X 8BY


Commercial Section:
46 Eaton Place
London SW1X 8AL


Hungarian Cultural Centre:
10 Maiden Lane
London WC2E 7NA

Telephone:

(020) 7201 3440
(020) 7235 2664 (Consular)
09065 508 936 9 (Consular Recorded Information)
(020) 7235 8767 (Commercial)
(020) 7240 8448 (Hungarian Cultural Centre)

Fax:

(020) 7823 1348


Email: office.lon@kum.hu
Email: titkarsag.lon@kum.hu


Website: www.mfa.gov.hu/emb/london

Office hours:

Mon–Thur: 0830–1700 
Fri: 0830-1400     
Mon-Fri: 0930-1200 (Consular)