ࡱ> KMJ bjbj 4" ( ( kk8,39G]]]]ppp8888888$:h=~8lp8kk]]8 k8]]8 8 Q/h0]׻j]/8809/== 00=g1 pH ^ppp88R ppp9=ppppppppp( 1: all good things come to an end Baron Frankal New Europe is swapping the cool continent for the sunny steppes of Manchester. Setting aside personal views and a close association, this last column tries to give an overview of what Europe sees when you say Hungary. Apart from being an increasingly popular weekend break, Budapest rarely has the EUs attention. It managed it last week when Hungary dropped out of its exchange rate band (a one on the Richter scale) and with the 2006 riots (a five). Prime-Minister Gyurcsnys admission to lying morning, noon and night caused much raising of eyebrows. Whilst there was a vague awareness in the early 90s that Hungary was the bright star of the region, over the last years it has been competing for the title of economic basket case, with drastically low relative growth, high inflation and a deep fiscal mess. For the most though, Hungary remains lumped in with rough notions about the Unions new members, which are overly reliant on the disproportionate media coverage given to political cartoon characters such as Vladimir Meciar and the Kaczynski twins. Many of the olds have not moved on from the attitude that we are doing them a favour by welcoming them into the club, lavishing them with subsidies, and providing millions of jobs, forcing unskilled native workers out of the job market. In fact, Western Europe has acted like a magnet for the young, upwardly mobile skilled labour desperately needed to maintain economic growth by plugging essential labour market gaps. In the countries left behind, emigration slows growth and impairs society, as the skilled and innovative continue to be lured away. However, with the new neighbours well-represented in the EUs institutions and increasingly making use of now-open borders, time continues to breed familiarity. Slovenia, first of the 2004 cohort to adopt the euro, is doing a good job of also being first to hold the rotating six-month EU Presidency. The Czechs are next in 2009, with Hungary and Poland in 2011. By then however, if the Lisbon Treaty is ratified (which New Europe eventually expects), the Presidency will be a diminished trophy, with more importance given to the holders of the three major EU appointments to be made in 2009: Commission President, High Representative and European Council President. Whether one of these goes to a new member national will be a key indicator. New Europes final thought is this: as in the wider region, 2004 brought divisiveness and euphoria. Four years later, the EU has shown that in the margins and in the future it helps. Things would be very much worse had Hungary not joined. However, the EU is neither the cause of nor the answer to Hungarys deep home-grown economic and political problems. Hungary must sort itself out on its own. 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