Abstract
Economic transition is being challenged in Eastern Europe from two fronts. First, by history: the capitalist transformation in the region was not completed when it was replaced by the socialist economic system. Therefore we need to analyze it in a context of a continuous process of transformation lasting for centuries. Secondly, it is challenged by society: social consensus on adapting new economic rationalism such as free competition is emerging very slowly. Instead, increasing political intervention in the economic processes is expected. Based on the Hungarian case, the article emphasizes these aspects and points out that EU policies are also inconsistent in the internal and external disciplines they impose, such as the Schengen treaty against the free movement of persons and the agrarian policy against the free movement of goods.
