April 25, 2010 / 6:26 PM / 9 years ago

Instant View: Hungary's Fidesz wins 2/3 in next parliament

BUDAPEST (Reuters) - Hungary’s center-right Fidesz party secured more than two thirds of parliamentary seats in Sunday’s second round of voting, according to preliminary figures from the National Election Committee.


“In the near term markets can give a vote of confidence in the new government but they will have to come out with their plans rather quickly.

“We may see some specific measures already in the days ahead. Some things have already leaked between the two rounds, on the basis of these it is likely that they are serious about halving the number of local government and parliament MPs.

“They apparently also want to clamp down of bureaucracy, but this will take more than one day.

“All this has to be seen against the backdrop that room for maneuver is limited so they will obviously make a push to make it larger, therefore they will pledge to eradicate corruption.

“I think they will come to agreement with the IMF quickly as they have already held consultations.

“Among analysts it is a rather widespread view that they will offer reforms in exchange for bigger room for maneuver, the question is what time frame we are looking at and when they can start.

“There are about 8,000-9,000 tasks performed by the state, they will take more than one day to halve, this is a process that requires months, maybe even years.

“If they start (reforms) quickly, that can trigger a positive market reaction in the longer run as well.

“Near term, there will be a vote of confidence in the new government and then the market will blend into the global environment, it will be driven by themes of Greece and the global recovery.

“If they act quickly, the forint can firm a bit but it must be said that this result was by and large priced in already.”

Reporting by Sandor Peto

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