Hungary receives heavy criticism: this is why the economy is in trouble
According to Dalibor Rohac, a researcher at the American Enterprise Institute, Poland's economic growth is not a miracle, but rather the result of consistent reforms that began in the 1990s under Balcerowicz's leadership. He stated that Poland's GDP is now among the twenty largest in the world and is "set to surpass Japan's per capita performance."
By contrast, he emphasises that Hungary has fallen seriously behind Poland, despite being wealthier at the time of the regime change.
Rohac said that the Poles, Czechs and Baltic states had "taken productivity growth seriously", establishing stable institutions and low tax rates while making intelligent use of EU funds. However, he claimed that Hungary had "become a de facto one-party state" over the past 15 years, where the government's political and power-related measures "make it impossible to develop an economy as dynamic as Poland's".
According to him, the situation was exacerbated by Budapest's harsh measures against foreign investors, such as imposing a special tax on them. There has also been a lot of talk about problems with the rule of law.
The researcher stated that "even Romania and Bulgaria are performing better than Hungary", describing this as a dramatic turnaround compared to the 1990s. He pointed out that,
although Hungary received the most cohesion funds per capita in the EU, the results are not visible. In contrast, EU funds in Poland were used "to build infrastructure, motorways and high-speed railways".
"Outside Budapest, Hungary seems to be falling apart," he told the French newspaper, adding that the question 'Where did this money go?' is justified.
Rohac believes that the decisive difference lies not only in the economy, but also in politics. After the Russian-Ukrainian war, a "cross-party consensus" emerged in Poland that recognised the significance of the conflict. In contrast, Orbán "sided with Moscow". In Rohac's view, this paved the way for the government's further isolation and economic decline. He believes that Hungary has reached a point where virtually all independent institutions are biased in favour of the government.
The researcher pointed out that another sign of Poland's success is the demographic shift: many Poles who had previously emigrated to Western Europe have returned, as they now see a similar or better quality of life at home.
He believes this is a "vote of confidence" in the domestic economy, which stands in stark contrast to the fact that Hungary has lost a significant proportion of its workforce, with those who have emigrated "showing no signs of returning."
Furthermore, Poland's substantial defence spending and growing geopolitical influence are strengthening its position in Europe.
Rohac emphasised that Poland had made more successful use of EU subsidies and capitalised on its size, offering a market of 35 million people who speak the same language — "a much more attractive prospect for investors" than the smaller surrounding countries. Convergence has also been accelerated by a well-educated workforce, systematic investment in human capital, and strong technological training.
During the interview, he explained that Western Europe, particularly France, does not fully appreciate the value of the Polish model.
He said that France, Italy and Spain were still displaying a certain degree of arrogance towards the eastern member states, despite having warned earlier and more accurately about risks such as the Russian threat. He added that there was "something to learn" from the Poles.
Finally, he stated that the economic disparity between Hungary and Poland was a "slap in the face for Orbán", adding that Hungarian voters "may make a different decision in the spring elections when they see this". He added that Poland's success demonstrates that
even an Eastern European country can catch up with, and potentially surpass, its Western counterparts. The Czech Republic's income level, for instance, has already overtaken that of Spain and Portugal.
Cover photo: EU
