Stability Pact for Hungary? Rise of Third Generation Reforms

Accession to the European Union is the clearest symbol of globalisation for a country in transition. The integration process does not represent purely regional values, but globalised ones as well, which are widely shared in the developed or globalising part of the world. In order to be fully integrated into the EU, the initiation of the so-called third generation reforms is required. On this basis the study argues that a Stability Pact can be an effective means to constrain deviant behaviour and to enforce fiscal discipline not just within a monetary union but also within a transitional country as well, by blocking the consequences of rash judgements stemming from cyclical changes in politics.