Poland's budget deficit could overshoot the European Union's target of 3 percent, and investors may continue to be spooked by the nationalist rhetoric and the socialist fervor of the governing Law and Justice party, known as PiS. Yet Orban's policies, on which the plans largely appear to be based, have more or less worked in Hungary, and they could work in Poland, too. [...]
Orban's financial nationalism has largely succeeded, Juliet Johnson of McGill University and Andrew Barnes of Kent State University wrote in a 2015 paper -- in part because the international bond markets have been surprisingly tolerant of the prime minister's illiberal policies. As long as Orban kept the macroeconomic numbers under control, and he did, yield-seeking investors were willing to lend to Hungary, even though the EU and the IMF were grumbling about the growing role of the state in the economy and Orban's readiness to fleece big foreign companies.
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