• After World War I, the Austro-Hungarian Empire broke up. 

  • The Treaty of Trianon was signed to formally end World War I. Part of the treaty awarded more than two-thirds of Hungarian Territories to neighboring countries. 

  • A government coalition decides to implement free-market policies.

  • Hungary joins the European Union (EU) as part of the 2004 EU enlargement. 

  • The global financial crisis hits Hungary's economy immensely. Economic aid was offered by the International Monetary Fund, EU, and the World Bank. 

  • The economist and Prime Minister of Hungary announce new programs to cut public spending, freeze public wages, and raise taxes in an attempt to decrease the budget deficit. 

  • Despite raising the VAT to the highest rate in the EU, the EU's aid to Hungary was suspended due to its large budget deficit. 

  • The European Union releases Hungary from the excessive deficit procedure mechanism as Hungary emerges from recession. 

Sources:

BBC News open_in_new
Britannica open_in_new