Floods and Fairness in Hungary

Abstract

In Europe, Hungary ranks only behind the Netherlands with respect to flood exposure, and by some estimates flood losses could be in the order of seven to nine per cent of Hungary’s gross domestic product.¹ Adding to the scale of the problem, floods appear to be worsening in their intensity and frequency. In view of these increasing losses, the Hungarian government is concerned about continuing its tradition of taking almost full responsibility for flood risk management, including prevention, response, relief, repair, reconstruction and other forms of compensation for private losses. With its membership in the European Union, Hungary has committed itself to a programme of fiscal austerity, and for this reason some government authorities would welcome more private responsibility for the prevention of, and response to, flood disasters. However, many Hungarians regard the transfer of liability for flood losses to citizens, especially those living in very poor areas, as unfair. One of the more controversial issues in Hungary, and throughout Europe, is thus the respective roles of the government and the private market in preventing flood losses and providing compensation to flood victims.