Low water levels in the Danube are forcing Hungary to take its nuclear power plant offline, prompting officials to urge cuts in energy consumption. The scale of the macroeconomic effects will, of course, depend on the length of disruptions to power generation. But at the very least, it will hamper the government’s efforts to both drive stronger growth and rein in the large fiscal deficit. And if electricity supply becomes a recurring issue, it could deter investment into the key manufacturing sector.
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