INSIGHT-Hungary dug itself a debt hole, now it pays the piper=3

Newswire

feel the pinch as well.

"So it's true that they are taking unfortunate measures in a period of heavy market stress, which is very much linked to the euro zone debt crisis, leading to an amplifying effect."

Attila Mesterhazy, the president of the defeated Socialist party, who had been its prime minister candidate at the time of its crushing defeat in the 2010 elections, said he sensed a mood of change, even if there still are few demonstrations of anger on the streets of Budapest, or anywhere else in the country, and he thinks that in part has spurred the government to return to the IMF, and to start talking to banks about the mortgage repayment scheme.

"The government is playing now with the life of the people, in a sense," he said. "And that's why I very much believe that the government wants to do this change in its economic policy."

(Additional reporting by Sandor Peto, Krisztina Festo, Gergely Szakacs and Marton Dunai in Budapest and Sylvia Westall in Vienna; editing by Janet McBride)

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