How are the ex-communist countries of Central Europe faring during the present global economic downturn? To judge by the glittering city of Budapest, the answer is that so far the forces of recession have made little impact. The restaurants are full, the shops crowded, the streets jammed with vehicles, the lights at night sensational.
It would be hard to guess that this is the capital of a country that has been on the verge of bankruptcy and only just rescued by a huge loan package ($15.7 billion) from the International Monetary Fund.
This may be because, as elsewhere in Europe, the real pain for consumers and the economy is yet to come. The potential for pain is considerable. Hungary has been heavily reliant on foreign borrowing that now demands repayment, and foreign investment that is now staying away.