Identifier
Created
Classification
Origin
06BUDAPEST2322
2006-11-16 15:08:00
CONFIDENTIAL
Embassy Budapest
Cable title:  

"NO ILLUSIONS" ON REFORM FROM FORMER PM HORN

Tags:  PGOV PREL ECON KDEM HU 
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VZCZCXRO1121
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #2322/01 3201508
ZNY CCCCC ZZH
P 161508Z NOV 06
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 0394
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 002322 

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 11/15/2011
TAGS: PGOV PREL ECON KDEM HU
SUBJECT: "NO ILLUSIONS" ON REFORM FROM FORMER PM HORN

REF: BUDAPEST 2269 AND PREVIOUS

Classified By: POL/C ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D)

C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 002322

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 11/15/2011
TAGS: PGOV PREL ECON KDEM HU
SUBJECT: "NO ILLUSIONS" ON REFORM FROM FORMER PM HORN

REF: BUDAPEST 2269 AND PREVIOUS

Classified By: POL/C ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D)


1. (C) Meeting with Ambassador Foley November 16, former PM
and MSZP MP Gyula Horn wasted no time in addressing the
challenge of implementing the Gyurcsany government's
convergence program. He asked us facetiously "not to say
reform - because everyone will think we're talking about more
cutbacks," and said MSZP officials "go to bed every night and
wake up every morning" thinking about health care. This will
be "the hardest issue of them all," and he believes the party
is "set on the principle" but is still discussing "minor
issues" regarding implementation.


2. (C) Referring to recent polls showing relative gains for
the MSZP, Horn remarked wryly that these "confirm that
Hungarians are masochists." Although he sees the need for
reform is a regional problem, he described the past few
months of demonstrations as "unusual" in Hungary, a country
unaccustomed to political discord. He has "no illusions"
about the long uphill battle ahead, commenting flatly that
the government does not have broad public support for its
reform agenda. The man on the street "still sees only the
short-term negative impact," and the government must balance
its reforms with provisions for social welfare. He candidly
expressed his hope that the MSZP "will not go down in the
process."


3. (C) Responding to the Ambassador's question, Horn noted
that there are "the usual fissures" within the MSZP but said
the party's collapse has been often predicted but never
realized. He was, however, distinctly cool toward the Prime
Minister, expressing his hope that the party will not be
"forced" into another confidence vote. He commented that
"Gyurcsany is neither simple nor easy to deal with," and
referred to "much hesitation" among "some within the party"
regarding the likelihood that Gyurcsany will run for the MSZP
presidency. He is stretched thin as PM, Horn suggested, and
it would be better for the party to maintain "its own

identity." Horn suggested that "any" of the other leading
contenders (Defense Minister Szekeres, Parliamentary Speaker
Szili, and Labor Minister Kiss - all stalwarts of the party's
more traditional wing) could serve as party leader.
Referring briefly to the succession within the SZDSZ
following party president Gabor Kuncze's expected departure,
Horn expressed a willingness to work with "whoever" their
next leader is to maintain the governing coalition, but
stated that the SZDSZ would only resent any MSZP interference
in its own "housekeeping."


4. (C) Turning to the opposition, Horn remarked that FIDESZ
is "doing all it can to help the MSZP win the 2010 elections"
by employing obstructionist tactics that will ultimately
backfire with the public. He expressed his respect for
Viktor Orban personally (but "not for his party"),describing
him as "a smart man ... but one who sure likes power."
(Comment: This is praise from Caesar. End Comment.) He
minimized the impact of Orban's recent attacks on alleged
MSZP corruption (reftel),noting that FIDESZ is hardly immune
to similar charges dating back to Orban's time as Prime
Minister. He is advising the government to investigate all
charges thoroughly, even though "95% of them amount to
nothing." He is also working quietly - though perhaps vainly
- to remain in contact with FIDESZ representatives in search
of the "lowest common denominator of cooperation."


5. (C) In a brief discussion of foreign affairs - his "labor
of love" - Horn emphasized the importance of diversifying
Hungary's sources of energy but underscored Hungary's
dependence on Russia by stating "we would have no
agricultural sector without the Russian market. He believes
Russian policy is now driven by core economic interests
rather than ideology, and saw the fundamental solution as
Russia's agreement to provide energy at stable prices in
exchange for high technology from the West. Hungary could
rely on Austria for short-term shortfalls, and in the
longer-term pipelines through Croatia and/or Serbia would
help "bring the Balkans fully into Europe."


6. (C) Comment: Horn retains considerable influence as an
MSZP insider and is clearly deeply involved with evolving
policy issues and internal political developments. His
remarks contrast sharply with those of former President Arpad
Goncz (father of FM Kinga Goncz),who told the Ambassador
earlier this week that he "only knows what he hears on the
news." Horn's comments re Orban - and contacts with the
opposition - are surprising given his reputation as a
hold-over from the old system, but his faint praise for
Gyurcsany speaks volumes about the PM, whose leadership
within the party may owe more to a fear of the opposition

BUDAPEST 00002322 002 OF 002


than to any personal affection from other MSZP members. End
Comment.


7. (C) Bio Note: Though fully in command of the substantive
issues, Horn's health has been the subject of comment of
late. His hands did tremble throughout the meeting, and
rumors are afoot that he may have Parkinson's disease ... or
a drinking problem.

FOLEY