Hungary has remained a stable democracy, a report by the American Freedom House released last week declared, fn.hu reported.

Although praising the government's reform program and stating that it quickly had a positive effect on the economy, the report also highlighted the appearance of a new far-right organization (the Hungarian Guard) as a negative development, as well as a loss of faith in the police following scandals. The lack of rioting on October 23, 2007 as compared to a year earlier was seen as an improvement.

The Freedom House added that Hungary is on the right path to cut its budget deficit to 3.2% of GDP by 2009.