Hungary's new inflation target, Romania's fiscal mess

The Hungarian central bank’s announcement of a new, lower inflation target this week puts the country one step further along the path to euro adoption. But arguably the bigger challenge in achieving the government’s goal of joining the single currency by 2030 will be reducing its large budget deficit to meet the convergence criteria. Hungary isn’t the only economy in the region with a fiscal challenge though. Romania faces the outcome of S&P’s latest assessment next week, which takes place against a growing political crisis that is preventing further austerity measures.