Is Hungary next in line for economic collapse?

HUNGARY

First it was Ireland, then Greece, closely followed by Italy, but now the spotlight is shining on Hungary as it comes to the forefront of the European debt crisis.

Commentators have now begun to ask whether will it be the first major European nation to default on its debt. The country is seeking a further €20bn bailout from the IMF and EU, following the $25bn IMF rescue loan in 2008, but the government also appears to be trying its best to scupper any chance of agreement. The result has been 10-year government bond yields soaring above 10%, the forint plummeting to an all-time low against the euro in early January, and credit rating agencies downgrading Hungarian debt to junk status. Most recently, the European Commission has judged the Hunga...