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Free keywords:
political economy, finance, varieties of capitalism, Eastern Europe, dependency
Abstract:
Disenchantment with global finance in Central-Eastern Europe enabled financial nationalism to emerge as a counter-hegemonic strategy. In Hungary, Prime Minister Orbán put forth his explicit aim to increase domestic ownership in banking to over 50% and legitimized the ensuing re-nationalization of the financial sector with resentment over neoliberal banking practices. The article describes how the financial crisis created an opportunity for Orbán and his allies to usher in a new era of financial ownership structures. It provides a critical political economy analysis of how the Orbán government selected economic sectors to target and how it used a network of associated private actors in its quest to re-nationalize and then re-privatize major banks to a newly created elite, the ‘national capitalists’. In this, financial nationalism constituted a grand strategy to reconstruct Hungarian capitalism in order to regain autonomy and assure long-term political survival within a liberal EU context.
