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Landslide victory for Hungary’s conservative opposition

Fidesz, the conservative Hungarian party, has won a two-thirds majority in parliament, according to official results.

With about 99% of all votes counted, Fidesz is projected to have won 263 seats in the 386-seat parliament, ending eight years of Socialist government.

The incumbent Socialists placed a distant second, obtaining 59 seats, while the far-right Jobbik took 47 seats. A new Green party, called Politics Can Be Different, received sixteen seats, and an independent candidate took the remaining seat. Read More…

On this day January, 14 1301

The Árpád dynasty, who ruled in Hungary since the late 9th century, ended with the death of King Andrew III.

The Árpáds was the ruling dynasty of the federation of the Magyar tribes (9th-10th centuries) and of the Kingdom of Hungary (1000/1001-1301). The dynasty was named after Grand Prince Árpád who was the head of the tribal federation when the Magyars occupied the Carpathian Basin around 896. Read More…

EC and US to provide financial backing for Nabucco Project

Austria, Bulgaria, Hungary, Romania and Turkey sign an intergovernmental agreement on the construction of the Nabucco natural gas pipeline from Erzurum in Turkey to Baumgarten an der March, a major natural gas hub in Austria, diversifying the current natural gas suppliers and delivery routes for Europe.

Pipeline Map

Pipeline Map

On 27 January 2009, the Nabucco Summit held in Budapest.

At the summit, the heads of the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) said, that they are prepared to provide financial backing for the Nabucco gas pipeline.

On 28 January 2009, the European Commission proposed €250 million as a part of its Economic Recovery Plan to be contributed through the EIB towards funding the Nabucco pipeline. Read More…

Natural gas crisis hits Austria and Turkey

With freezing temperatures, combined with snow over the past few days Russia halted the natural gas flow to Ukraine, and therefore to subsequent countries such as Bulgaria, Austria, Turkey, Poland, Romania and Hungary.

The Russian natural gas pipeline is the primary source of natural gas for some countries such as Ukraine, Austria and Turkey.

Ukraine is currently in negotiations with Russia in order to restart the gas flow, however Russia has increased the prices from US$179.50 per 1,000 cubic meters to $250 per 1,000 cubic meters for Ukraine. Read More…

IMF prepares to help Hungary and Ukraine

The International Monetary Fund (IMF) is preparing a series of loans to both Hungary and Ukraine as financial problems are hitting the two countries. Hungary has already received a 5 billion credit line from the European Central Bank (ECB). Ukraine is seeking a loan of up to US$14 billion.

The credit line to Hungary will be used to cover banks’ shortage of euros. Hungary has a severe debt problem with them posting an account deficit of €5.3 billion or 4.9% of GDP this year. As a result of this, Hungary is unable to find suitable credit to store up its supply of euros. Read More…