The ratings on the Republic of Hungary are supported by a comparatively wealthy economy, with well-diversified economic and export structures, that is well integrated with the EU. The ratings remain constrained by very high fiscal deficits and high and rising government debt levels, as well as a large external debt burden. Years of public sector profligacy have seriously undermined the credibility of Hungary's fiscal policy, culminating in a general government deficit in 2006 of 9.2% of GDP. Following the general elections in April 2006, however, the government's candid approach to the large fiscal challenges, as well as its demonstrated determination to implement an impressive consolidation agenda should ensure that ambitious fiscal targets will be met, at least for the next
