Unlike the early 2000's, in recent years it looks like there is improvement regarding national languages, especially as this year we got several countries singing in their own national language, who usually submit songs in english (like Albania, Estonia , Hungary, Iceland, Moldova). what still remains a fact, is that most of winners performed in english, and the former soviet block always in english and always do very well.
As far as i see it, i find most important is the song itself. i really don't care about the lyrics, especially if there are in language i don't understand, so i can still enjoy the music. anyway it will be much better to hear an artist sings in his\her own native language, as many sounds really pathetic with their "forced" english
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