Dear Readers,

Since the end of last year the eyes of the world have been focused on what is certainly the largest humanitarian aid program in modern times. The tsunami that hit a dozen Southeast Asian and African countries killed hundreds of thousands, and left many more millions homeless. The subsequent response that was ignited throughout the globe was heart-warming, as was the universal solidarity that followed. Hungary, though the government, the actions of NGOs and private individuals contributed and continue to contribute to the efforts to rebuild in the disaster-stricken areas.

In Hungary itself, the economy has continued to be in the spotlight, but unfortunately for the wrong reasons. Hungary’s Finance Minister Tibor Draskovics took the punches. An important international ratings agency lowered its rating of the Hungarian currency and the European Union scolded Hungary for its inability to tackle the deficit. Draskovics realizes the country’s credibility is at stake.

In this issue we also look at the change of government in neighboring Romania, but it was not just the make-up of the government that changed. Romania is now set to introduce a flat rate of personal income tax and a corporate tax rate of 16 percent, following Slovakia’s example when it cut its own rate to 19 percent. These dramatic changes in the region only underline the question again in Hungary as to whether similar reforms are desirable, and if they are politically feasible. In Romania, ethnic-Hungarian leader – and now deputy Prime Minister of Romania – Béla Markó spoke to us during a trip to Budapest about the reactions of ethnic Hungarians in Transylvania as a result of the recent poll on dual-citizenship. It is evident by our discussions that ethnic Hungarians took the results of the poll as a negative pointed at them. Certainly this means moving forward positively will mean working closer with ethnic Hungarians, healing the wounds and together finding solutions to problems. In Hungary, the government has also been tackling one of the most sensitive issues since the systemic changes: the opening of the files of the former communist-era secret service. It looks like we may have reached an end-game to the ongoing tug-of-war on this issue. Hungary may well soon be in a position to truly face its past, and then hopefully move on.

Peter Freed
Publisher - Kiadó