The latest warning on sovereign debt is Hungary.
The European Commission on Thursday urged Hungary to cut its budget deficit faster, even as government officials reiterated the 2010 fiscal gap may reach almost twice the target agreed with lenders including the EU.
Notice the center right, infamous tax cut philosophy of Hungary. That didn't stop contagion or budget deficits. Of course they are blaming the ghosts of those who enact policies which favor a middle class.
The vice chairman of the ruling Fidesz party, Lajos Kosa, said the government would launch a crisis management plan soon.
Public finances were in much worse shape than previously expected and there was only a slim chance of avoiding a Greek-style scenario.
This statement drove their currency down 2.4%.
The cost of protecting Hungarian debt against default jumped to a 10-month high. Credit-default swaps increased 31 basis points, the most in a month, to 290 as of 4:40 p.m. in London, according to CMA DataVision prices. The default swaps gain as perceptions of credit quality deteriorate.