Fitch says even an investor “haircut” proposed by the EU would constitute a default. The question is only, whether it is an orderly or disorderly default.
This signifies the absurdity of statements claiming the Hungarian economic problems are a result of disagreements with the EU over issues like the data ombudsman. Greece never had any issue like that nor was there a hate campaign against them over their media law or any other internal affair. Yet the fact that they are in a worse economic situation than Hungary is not debatable. The real reason for that is not any press campaign and “infringement proceeding” it is because of mountains of debt accumulated in past decades by previous governments. Which is interestingly the exact same issue that Hungary has. Yet with the recent change of government in Greece it became obvious that all the problems won’t just simply disappear because a new government is put in place.
Which seems to be the expectation of many observers regarding Hungary.
So after the Greek default happens, will the leaders of the EU admit that putting a puppet in place of the democraticly elected government is not the magic solution that creates a paradise on earth?
It is also quite likely that the looming Greek default will prompt the usual reaction. To ignore the problem and seek a suitable distraction like Hungary bashing.