{"page":"\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/resources-c03aa079.css\" /\u003e\n\u003clink rel=\"stylesheet\" href=\"https://lessonplanet.com/assets/packs/css/lp_boclips_stylesheets-517835be.css\" media=\"all\" /\u003e\n\u003cdiv data-title='Debt crisis poses risk for central Europe\u0026#39;\u0026#39;s struggling economies' data-url='/boclips/videos/5c54c390d8eafeecae1623b6' data-video-url='/boclips/videos/5c54c390d8eafeecae1623b6' id='bo_player_modal'\u003e\n\u003cdiv class='boclips-resource-page modal-dialog panel-container'\u003e\n\u003cdiv class='react-notifications-root'\u003e\u003c/div\u003e\n\u003cdiv class='rp-header'\u003e\n\u003cdiv class='rp-type'\u003e\n\u003ci aria-hidden='true' class='fai fa-regular fa-circle-play'\u003e\u003c/i\u003e\nVideo\n\u003c/div\u003e\n\u003ch1 class='rp-title' id='video-title'\u003e\nDebt crisis poses risk for central Europe\u0026#39;\u0026#39;s struggling economies\n\u003c/h1\u003e\n\u003cdiv class='rp-actions'\u003e\n\u003cdiv class='mr-1'\u003e\n\u003ca class=\"btn btn-success\" data-posthog-event=\"Signup: LP Signup Activity\" data-posthog-location=\"body_link_boclips\" data-remote=\"true\" href=\"/subscription/new\"\u003e\u003cspan\u003e\u003cspan\u003eGet Free Access\u003c/span\u003e\u003cspan class=\"\"\u003e for 10 Days\u003c/span\u003e\u003cspan\u003e!\u003c/span\u003e\u003c/span\u003e\u003c/a\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-body'\u003e\n\u003cdiv class='rp-info'\u003e\n\u003cdiv aria-label='Hide resource details' class='rp-hide-info' role='button' tabindex='0'\u003e\u0026times;\u003c/div\u003e\n\u003ci aria-label='Expand resource details' class='rp-expand-info fai fa-solid fa-up-right-and-down-left-from-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003ci aria-label='Compress resource details' class='rp-compress-info fai fa-solid fa-down-left-and-up-right-to-center' role='button' tabindex='0'\u003e\u003c/i\u003e\n\u003cdiv class='rp-rating'\u003e\n\u003cspan class='resource-pool'\u003e\n\u003cspan class='pool-label'\u003ePublisher:\u003c/span\u003e\n\u003cspan class='pool-name'\u003e\n\u003cspan class='text'\u003e\u003ca data-publisher-id=\"30356011\" href=\"/search?publisher_ids%5B%5D=30356011\"\u003eCurated Video\u003c/a\u003e\u003c/span\u003e\n\u003c/span\u003e\n\u003c/span\u003e\n\u003c/div\u003e\n\u003cdiv class='rp-description'\u003e\n\u003cspan class='short-description'\u003eGyor, Budapest1. Top shot of worker assembling car engines on production line at Audi plant2. Worker putting an overhead camshaft into the engine.3. Close up of overhead camshaft being fitted4. SOUNDBITE (Hungarian) Monika Czechmeister,...\u003c/span\u003e\n\u003cspan class='full-description hide'\u003eGyor, Budapest\u003cbr/\u003e1. Top shot of worker assembling car engines on production line at Audi plant\u003cbr/\u003e2. Worker putting an overhead camshaft into the engine.\u003cbr/\u003e3. Close up of overhead camshaft being fitted\u003cbr/\u003e4. SOUNDBITE (Hungarian) Monika Czechmeister, Chief Communication Officer, Audi Hungaria:\u003cbr/\u003e\"Engines and cars built in this factory are sold all over the world, in all kind of markets. This means that this plant, here in the city of Gyor, works 100 percent for export.\"5. Crane lifting up engine at the end of the production line\u003cbr/\u003e6. Forklift truck with engines\u003cbr/\u003e7. Pan of sign on train carrying engines\u003cbr/\u003e8. Low shot of train passing\u003cbr/\u003e10. Brokers working in trading-room of ING Bank''s Budapest branch.\u003cbr/\u003e11. SOUNDBITE (English) David Nemeth, Senior Analyst at ING Bank:\u003cbr/\u003e\"Export is mainly slowing, because of the European conjuncture is also slowing down. Hungary''s economy is linked mainly to the German economy. Our trade balance, and our export, 26 percent of our export, are linked to the German economy. And the latest figures suggest that the confidence in the German economy is deteriorating. And it shows that there will be less and less demand for Hungarian products as well.\"\u003cbr/\u003e12. Nemeth talking to other brokers.\u003cbr/\u003e13. SOUNDBITE (English) David Nemeth, Senior Analyst at ING Bank:\u003cbr/\u003e\"Unfortunately in Hungary in the last four years the domestic consumption is quite weak. First of all, Hungary had to make a big consolidation on the fiscal policy and Hungary had to continue it after 2008 as well. It caused that the households has less and less disposable income, so they can spend less and less money. Additionally, the Hungarian households has a high portion of debt, especially denominated in Swiss franc. And the weakening florint against the Swiss franc also caused that the disposable income is decreasing in the household sector.\"\u003cbr/\u003eBudapest\u003cbr/\u003e14. Former public relations assistant Annamaria Domotor gets into her car\u003cbr/\u003e15. Close of car door being shut\u003cbr/\u003e16. Domotor drives off\u003cbr/\u003e17. SOUNDBITE (Hungarian) Annamaria Domotor, former public relations assistant, currently unemployed:\u003cbr/\u003e\"I spend all my income on this car, and this has a big effect on my life. I stopped my all other spending. I buy nothing other than my minimum needs.\"\u003cbr/\u003e18. Domotor driving\u003cbr/\u003e19. Peter Roth, shopkeeper serving customer\u003cbr/\u003e20. SOUNDBITE (Hungarian) Peter Roth, shopkeeper:\u003cbr/\u003e\"Customers are seeking the sales, they are buying the products which are on sale. So we make different sales every week to keep our customers.\"\u003cbr/\u003e21. Roth serving customer, UPSOUND: (Hungarian): \"It''s eighteen and half grammes.\"\u003cbr/\u003eWoman: \"Don''t bill for that half a gramme!\"\u003cbr/\u003e22. Roth wrapping meat\u003cbr/\u003e23. Roth and customer\u003cbr/\u003eHungary''s economic recovery is starting to look vulnerable as anxieties grow about the new European debt crisis.\u003cbr/\u003eThe central European country saw its economy rebound last year thanks to a booming export sector, a welcome change after years of pain. \u003cbr/\u003eHungary needed a bailout from the International Monetary Fund in 2008 as the global downturn exacerbated a domestic debt crisis, and the next year its economy shrank more than six percent.\u003cbr/\u003eNow experts worry that the economy, expected to continue last year''s rebound with growth this year of more than 2.5 percent, could be dealt a new blow if Germans and other Europeans get cold feet about consuming. \u003cbr/\u003eSuch a scenario could slash demand for the Audi, Suzuki and Volkswagen cars and other machinery and goods produced in factories across Hungary.\u003cbr/\u003eThe vulnerability comes largely from the fact that the economy is highly dependent on its exports to power growth and can''t count on Hungarians to consume much as their incomes get squeezed more and more.\u003cbr/\u003e\"This plant, here in the city of Gyor, works 100 percent for export,\" Monika Czechmeister, Chief Communication Officer for Audi Hungaria said.\u003cbr/\u003eConsumer demand is anaemic because of austerity measures imposed in recent years to trim back the high deficit. \u003cbr/\u003eThat has led to layoffs and wage cuts for people in the public sector as well as pension cuts for retirees. Unemployment is now about 11 percent.\u003cbr/\u003e\"Unfortunately in Hungary in the last four years the domestic consumption is quite weak,\" said David Nemeth, a senior analyst at ING Bank in Budapest.\u003cbr/\u003eIn addition, a large number of Hungarians are suffering now because they took out mortgages and other loans in Swiss francs in recent years. Those loans seemed like good deals not so long ago due to their low interest rates. \u003cbr/\u003eBut with Europe gripped anew by financial crisis, investors have fled to the safety of Swiss investments, causing the franc to rise sharply.\u003cbr/\u003eThat has left Hungarians with mortgage payments that have skyrocketed, shrinking disposable incomes even further. \u003cbr/\u003ePoland and Croatia also have significant amounts of Swiss franc debt, but still less than Hungary, according to Capital Economics.\u003cbr/\u003eAmong the Hungarian borrowers is Annamaria Domotor, who took out a Swiss franc loan five years ago to buy a little red Suzuki Swift, a car she needed to commute to her job as a public relations assistant.\u003cbr/\u003eThe payments at the time caused little pain. They amounted to 34,000 forints (175 US dollars) a month, a fraction of her monthly salary of 250,000 forints (1,290 US dollars).\u003cbr/\u003eSince then her car payments have risen to 46,000 forints (237 US dollars) due to the appreciation of the Swiss franc. \u003cbr/\u003eMeanwhile, she lost her job and gets a monthly unemployment check of just 42,000 forints (215 US dollars), which doesn''t even cover the car payments. For now she is living off her savings.\u003cbr/\u003e\"I spend all my income on this car, and this has a big effect on my life,\" the 39-year-old said as she got into the car, which was produced at a factory north of Budapest.\u003cbr/\u003e\"I stopped my all other spending. I buy nothing other than for my basic needs.\"\u003cbr/\u003eThe huge dependence on exports is a result of how tightly intertwined Hungary''s economic growth is with Western Europe countries, Germany, above all, thanks to European Union membership.\u003cbr/\u003eGerman companies like Volkswagen and Audi, taking advantage of cheaper labour costs, increased their presence in the region in recent years, building factories that produce machinery and other goods that often get sent back to markets in Germany and elsewhere in the EU.\u003cbr/\u003e\"Most of the countries in the region are very deeply connected to the German economy,\" said David Nemeth.\u003cbr/\u003eGermany, which grew 3.6 percent last year, is on track for another strong performance this year. \u003cbr/\u003eYet business confidence has slipped recently and the momentum is expected to slow as world trade growth slows and governments cut spending, according to a July report from the 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