SWOT Analysis - Central Europe

The aim of the Hungarian economy after 1989 was a transition from a
planned to a market economy. Hungary as a member of the European Union
the world's largest single market, in accordance with the objectives of the
European Union’s economic policy aspiring to replace the Forint to Euro to
achieve low interest rates, manageable fiscal deficits and government debt
levels to meet the requirement of the Maastricht criteria’s low inflation rate.
2.3 General presentation of the administrative system
Hungary's territorial administration has two main levels. At territorial level 19
counties and the capital (Budapest) while at the local level 3152 towns and
villages is found.
Among the settlements there are 328 municipalities the rests are villages. The
cities include 23 provincial towns and the capital, and the latter is divided into
23 districts. Out of the villages there are 118 large ones. [16] These territorial
units possess their own municipality. In Budapest two-tier local government
system operates, which consist of the Metropolitan municipalities and district
authorities. There is no hierarchical relationship among the counties and
municipal governments. (CSO, 2009b)
Out of the two basic levels, there are two more territorial levels, the designing-
statistical region and the micro-region. Originally both were created for
statistical purposes and under the regional institutional framework, but they
form as well as the territorial basis of organizing some administrative and
municipal functions.
The 7 regions were established with the grouping of the counties and the
capital, and the 174 micro-regions within the boundaries of the counties with
the grouping of municipalities. Budapest forms a separate micro-region.
(CSO, 2009c)
Regarding the Local Self-Government Act, the County Town Municipal
Council in its own territory - corresponding changes - assume their own
competence of the county government functions and powers. Cities with