Foreclosures Pull Down a New Iron Curtain in Europe

In this global age, foreclosures in distant USA are pulling down a new iron curtain in Europe.

The eleventh century Hungarian town of Mosonmagyarovar is prospering. This castle town is a case study of the impact of the foreclosure crisis on eastern as well as central Europe.

The seeping in of greed in capitalism in the two decades after the fall of communism globally is now causing the pulling down of a new iron curtain in Europe. This curtain that is slowly but surely falling into place comprises of economics unlike the old one that was mainly political in texture. The national boundaries being demarcated are almost the same as those that divided Europe during the last half century – rich western zone and the poorer, democracies of the eastern part of the continent.

Mosonmagyarovar is typical of the new crisis surfacing in Europe. The town has about 30,000 residents. There are sharp business dealings in retail, real estate and the conventional occupation of dentistry. It seems that the financial crisis is raging in another planet. French models of Citroen cars continue to be proudly showed off in shops. The eateries are full as are the bars – peaking on weekday fun and frolic. What is unique is that this town is like an island oasis marching ahead towards unchained capitalism following the American model. This window dressed prosperity is causing neighbouring Slovaks and Austrians to flock to this town to make the best of the collapse of the Hungarian currency – the forint.

In the parking slots of the super market Tesco of Mosonmagyarovar, most of the car owners are Slovaks who have made this 25 km drive from their capital Bratislava. They are even rushing in from far away Slovakia.

A small village, Rajka, on the Hungarian side of the boundary with Slovakia can be seen ruins of security apparatus that had been installed to control the movement of people during the stern communist regime. The signs are in Slovak language and not Hungarian. Hungarians cannot afford new houses considering the state of their economy. Slovaks are much better off after they gave up their currency and joined the Euro group of 15 better-off European Union states. They are snapping up real estate.

Austrians too in rich furs are picking up bargains. Vienna is only 84 km distant. They always came to Mosonmagyarovar for dental care – it having the highest concentration of dentists in the world.