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 high fiscal deficits and high and rising government debt levels, as well as a large external debt burden. The outlook was revised to negative from stable on March 14, 2008, reflecting increasing political incentives and pressure to dilute the fiscal reforms ahead of upcoming elections, coupled with the increasing cost of external borrowing. The government's decision in late 2006 to commit to a comprehensive fiscal consolidation program represented a departure from Hungary's ignominious budgetary past. Since then, a strong consolidation effort has driven down the general government
