The Foreclosure Triggered Global Financial Crisis Has Badly Hit Eastern Europe

The foreclosure triggered global financial crisis has badly hit Eastern Europe. The Hungarian town of Mosonmagyarovar is booming thanks to shoppers coming over from Austria and Slovakia.

Slovakia and Austria are bang close to the town and in the Euro zone. They are taking advantage of the plunging prices in Hungary because of the falling of the Hungarian currency – forint. Every year 160,000 Austrians seek dental care in Mosonmagyarovar – it being the world capital for the same.

In 2008 during the initial phases of the calamity, Hungary was the first EU member country to appeal for IMF help. It granted $27.2 billion to avoid trouble. To make matters worse the Prime Minister Gyurcsany announced his resignation being charged for making false statements about the condition of the economy so that he could win the elections. The nation slipped into a state of shock.

Gyurcsany decided to resign but he wanted to continue as kingmaker and got himself elected again as the chairperson of his party. But the situation being untenable he had to announce that he would give up even that post. The financial crisis has sliced off the economy of Hungary by 5% - this being more than the damage that has already been done.

There are other capitals in East Europe that are realizing that the western model of capitalism does not make up for the lack of growth they had undergone during the communist era. All the regions that had once enjoyed minimum stability and freedom from basic hunger (albeit lack of glamour and wealth) are seeing their governments falling like card packs – all victims of the foreclosure triggered global crisis.

Recently in late March this year the Prime Minister Mirek Topolanek in Prague fell adding to the problems of the Czechs. The industrial output of this country dropped by a staggering 23% in January 2009.

Previously the rightist government of Latvia that had made the leap forward towards a free market and did away with social protection was eased out forcibly by rioters.

Towards the end of 2007 the Lithuanians voted out their government that had caused their country to be dragged down to the brink of recession. They are far from happy with the new government however.

In relevance to the international scene the most worrying is the fall of the Czech government because the fall of Topolanek has happened when he is the President of the EU – a rotating post.

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