25 December 1977
Illyés’s Article on Hungarians Living Beyond National Borders Is Published
With the rise of the price of oil, the economies of the socialist countries suffered declines. The introduction of reforms that had begun in 1968 came to a stop, and Hungary tried to address the crisis by taking out loans. However, the loans were not used to develop the economy but rather to finance improvements in the standard of living, which was necessary for the regime in order to maintain stability. Hungary became reliant on credit from the West and went further and further into debt.