Hungary election winner must curb social spending says S&P
S&P Global says Hungary's next leader must curb social spending to stabilize finances. Rising energy costs and high deficits pose risks to the credit rating.
The winner of the upcoming parliamentary election in Hungary will face immediate pressure to curb social spending and stabilize state finances to mitigate risks from a global energy price shock. According to S&P Global Inc., the country's fiscal performance is under scrutiny as the budget deficit reached nearly 40% of its full-year target in the first two months of 2026.
This surge in spending occurred under Prime Minister Viktor Orban ahead of the April 12 ballot, where he faces a significant challenge to his long-standing leadership. S&P indicated that the lack of a clear medium-term fiscal rebalancing plan, coupled with rising external pressures, could trigger a downgrade of the nation's credit rating.
