For the second year in a row, the European Bank for Reconstruction and Development’s (EBRD) annual transition report has rated Hungary as the top performer in transition to a market economy with a score of 3.96 out of a possible 4.33, in spite of the country’s chronic economic and social problems.

The Hungarian government is making cuts across the board, and public sector unions of all stripes and colours are protesting. The government is struggling to meet deficit targets set by the EU and IMF, while thousands are being laid off in the private sector as a result of the crisis.

“Hungary’s appearance at the top of the transition charts casts serious doubts about the ways in which transition is measured and on what the actual goals of transition are based,” commented Mark Fodor, executive director of CEE Bankwatch Network. “Neighbouring Slovenia, which is widely considered to be stable and prosperous, has a considerably lower score of 3.41. This analysis places too much emphasis on private sector participation without consideration for social and environmental factors or lessons learned from the economic crisis”.