Economic instability and regional falling behind – Hungary’s case
GÁBOR OBLATH
Since the early 2000s Hungary’s economy has been characterised by larger macroeconomic instability than that of the other three Visegrád countries, which contributed to the disappointing economic growth performance of Hungary. Instability has manifested itself in large external and internal imbalances – leading to unsustainable increases in external and public debt –, high inflation and pro-cyclical fiscal policy. The inevitable policy measures aimed at correcting macroeconomic imbalances have led to a fall/stagnation in consumption, investments and productivity, hindering the convergence of the Hungarian economy to the more developed part of the European Union.
The European Single Supervisory Mechanism
JÓZSEF TÓTH
The European Parliament accepted the proposal of European Committee regarding Single Supervisory Mechanism in 2013 which brings significant changes in supervision of European banks from November 2014. It is the first pillar of the Banking Union. Participation in the system is compulsory for each Euro zone country, but other EU members also can join the system. Large banks over certain total assets will directly supervised by European Central Bank. Besides, the 3 most significant banks of each participating country will also directly supervised by ECB. Other banks remain under supervision of sovereigns but under indirect supervision of European Central Bank.The article deals with the operation of the bank supervisory mechanism, the rights and responsibilities of the participating countries and European Central Bank. Also, the article deals with the pros and cons of joining the Single Supervisory Mechanism.
Crisis Management and Rise of Euroscepticism in Hungary and in the EU Causes, Schemes, Consequences
JÓZSEF PÉTER MARTIN
A manifold crisis has unfolded in the recent years in the EU. If a crisis erupts, there also is a crisis consciousness among economic and political decision-makers and population. After having discussed the theoretical framework of elite’s and population’s perceptions and its link with public decision-making, this study elaborates on the crisis response of the EU, and how these policies are perceived by the population. What does the image about the EU depend on, and what is at stake if the perception about the EU is changing? Will the EU remain an “economic giant” and a “political dwarf ” after this crisis as it was before it? Where has the evil of euroscepticism nestled – into politics and/or into economy? The current analysis focuses on the new, Central and Eastern European members of the EU, primarily Hungary, and, secondly, on Poland. How is it possible that Hungary which happened to be an “eminent pupil” in the first decade after the change of regime fully supporting European integration, nowadays is falling behind not only the EU mainstream but also the CEE region? What are the political and economic reasons behind the rise of Hungarian euroscepticism? And what kind of interaction has been taking place between the assessment of the EU and the perception of economic situation? Do the hard facts reflect the population’s perception on the economy?
The socio-economic impacts of short food supply chains: a review
BENEDEK ZSÓFIA – BALÁZS BÁLINT
Recent decades have seen an increasing interest in the analyses of local food and short food supply chains (SFSCs). The aim of this paper is to review the relevant academic literature to understand their potential socio-economic impacts. First, problems of conceptualisation related to the definition of SFSCs are investigated; then, the socio-economic impacts perceived by consumers and producers are characterized; and finally, the rural development potential is discussed. According to the results, it is hardly possible to provide evidence on SFSCs as effective policy tools in rural development, because of the context dependence of their socio- economic impacts. Still, we conclude that SFSCs seem to offer a way to increase social cohesion, to generate consumer demand for healthy food as well as to halt the depopulation of rural areas.
Legal supplement
Convention on International Sale of Goods
JUDIT GLAVANITS – DIÁNA RÁCZ
As sales contracts are the basis of international commerce, the codification and/or recodifycation of these legal institutions are not only crucial for legal advisors but for those who work in the international export business. The purpose of this article is the new Civil Code of Hungary coming to effect on 15th March 2014, which indicates changes in the whole civil law system. It is current and reasonable to investigate the connections of rules of the new Hungarian regime with the most commonly used international source, the Convention on International Sales of Goods (CISG). The study deals with the question of breach of contract, especially the fundamental breach, and the consequences of the breach in both texts, and the relevant international jurisdiction on this field. As a finding we can say it is very welcomed that the new general provisions of contract law in Hungary became much familiar to the international sources including CIGS, which will for sure facilitate to act in compliance with regulation for the parties of international trade.