The Hungary government pulled down the entire European and also the US markets on Friday, by making the unexpected statement on the precarious financial position of their country. The government spokesperson had said on Friday that the country is almost in a Greece-like situation and a default is not ruled out.
It took four or five hours for the new Hungary government to understand the dangers of making such irresponsible statement. So it put a team to do a thorough but quick review of the real financial situation. The team has now confirmed that the financial situation is bad but manageable.
The new statement is expected to bring some solace to the financial markets when they open up on Monday morning, though it may not be good enough to recover the entire loss sustained on Friday alone.
The new Hungary government is now planning to bring in tougher austerity measures to keep the budget deficit within the agreed norm.