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21 Program on Central and Eastern Europe

The State & SOEs in Hungarian Privatization

1992 – Gyorgy Holló


The Hungarian privatization process can be characterized as a conflict between State-owned Enterprises and the State itself as represented by the State Property Agency. To the extent that prior to privatization, SOEs had to be renationalized, the process itself remains full of internal contradictions. The outcome of that conflict is uncertain, and it is not yet clear how far the extensive powers of enterprise managers appointed by the previous regime will be curtailed.