Global News Journal
Beyond the World news headlines
Hungary has negotiated a $25 billion economic rescue package with the IMF, the EU and the World Bank. What else is new? As that non-Hungarian philosopher of gamesmanship Yogi Berra put it, it’s ”like déjà vu all over again”.
Consider the words of historian Paul Lendvai who wrote: ”Its economy in tatters, Hungary accepts a loan of 250 million gold crowns.” “Fiscal stability was restored, a currency reform was introduced…and after a modest upswing the value of industrial production stood 12 percent higher…”
The date? The 1920s. The lender: The League of Nations. Only the details have changed.
Hungary seems never to have encountered a global financial crisis it didn’t jump into head first.
If the financial crisis looks bad, I for one am thinking it might have been even worse — in the euro zone at least — had European countries not decided to pool their economies together by launching the single European currency.
I covered Europe in the 1980s from Belgium and Luxembourg when the idea of a single currency was still the pipe dream of a few old men who back in the 1950s had been inspired by the idea of a united Europe emerging from the rubble of World War Two.
While markets plunged in Russia and Turkey, the emerging markets of central Europe saw only muted reaction (some of their currencies are actually up on the year) largely because their EU status guarantees them access to easy money from the bloc.