Part 3/10:
Despite a broader normalizing of fiscal policies across Europe, in which many countries began reducing their deficits back to pre-pandemic levels around 2-3% of GDP, Hungary has distinctly faltered. In 2023, Hungary's budget deficit soared to 6.7% of GDP, second only to Italy. This deviation can be attributed, in part, to the controversial introduction of a "super bonus" scheme by the government, which incentivized costly home renovations, leading to significant government expenditure that exceeded initial forecasts.