Identifier
Created
Classification
Origin
06BUDAPEST2517
2006-12-21 14:50:00
CONFIDENTIAL
Embassy Budapest
Cable title:  

OUTGOING SZDSZ LEADER PREDICTS RENEWED PROTESTS,

Tags:  PGOV KDEM HU ECON 
pdf how-to read a cable
VZCZCXRO1435
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #2517/01 3551450
ZNY CCCCC ZZH
P 211450Z DEC 06
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 0572
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 002517 

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 12/20/2011
TAGS: PGOV KDEM HU ECON
SUBJECT: OUTGOING SZDSZ LEADER PREDICTS RENEWED PROTESTS,
URGES CONTINUED COALITION SOLIDARITY

REF: BUDAPEST 2489

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 002517

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 12/20/2011
TAGS: PGOV KDEM HU ECON
SUBJECT: OUTGOING SZDSZ LEADER PREDICTS RENEWED PROTESTS,
URGES CONTINUED COALITION SOLIDARITY

REF: BUDAPEST 2489

Classified By: POL/C Eric V. Gaudiosi; Reasons 1.4 (b) and (d)


1. (U) Outgoing SZDSZ party president Gabor Kuncze shared
his thoughts on the future of his own party, the governing
coalition, and the Gyurcsany government with Ambassador Foley
at an ambassadors' lunch in his honor December 20.

WHITHER THE SZDSZ ... OR IS THAT WITHER THE SZDSZ?


2. (C) Looking past the SZDSZ's recent electoral losses and
toward its future, Kuncze commented that the party must
remains true to its founding principles of economic
conservatism and social liberalism. The SZDSZ, he continued,
should focus on bringing its message of transparency and
opportunity to new groups without "patronizing them."
(Comment: It is unclear whether Kuncze is referring to the
party's need to revamp its intellectual image or to specific
outreach to groups such as the Roma. End Comment.)


3. (C) The upcoming contest to replace Kuncze will help
determine the party's direction (reftel). Kuncze did not
venture a prediction as to the outcome, but described
Minister of Finance Koka as a "better symbol of renewal" but
MP Fodor as "more representative of our base."


4. (C) Turning to the future of the party's long-time
coalition with the MSZP, Kuncze acknowledged the irony of the
Alliance between the anti-communist SZDSZ and the "successor
party." That said, he bluntly assessed that there are "no
other options," specifically questioning the ability of the
center-right MDF to expand its base given competition from
FIDESZ.

LOYALTY WITHOUT REGARD FOR GYURCSANY; RESPECT WITHOUT TRUST
FOR ORBAN


5. (C) Kuncze expressed little personal connection with PM
Gyurcsany despite his dogged loyalty throughout the past
months, describing the PM as "a very inexperienced politician
... "more highly regarded abroad than in Hungary." Kuncze
commented that Gyurcsany has "stumbled badly" and "should
have resigned" given his loss of personal credibility.
Ultimately, however, Kuncze believes the SZDSZ should "stick
with Gyurcsany ... as long as he sticks with reform."
Although he sees the importance of differentiating the SZDSZ
from the MSZP by emphasizing "modernization and
competitiveness," the party should not "distance itself just
for distance's sake."


6. (C) Gyurcsany will have enough trouble, Kuncze predicted.
He believes "the spring will be as tough as the fall," and
is convinced Orban is preparing a coordinated series of
"livelihood demonstrations" once the economic impact of
austerity measures hits home. He emphasized that he
mistrusts Orban but "never underestimates his political
genius." He added, however, that Orban will need to be at
the top of his game to continue FIDESZ's "excommunication"
policy regarding PM Gyurcsany given the desire of many within
the party to deal with the government in order to ensure
access to EU development funds.


7. (C) Kuncze believes that compromise between the
government and the opposition remains possible despite the
polarization caused by Gyurcsany and Orban. He cited party
financing, the electoral system, local government, regional
development, education, taxes, and competitiveness as areas
where the parties should be able to reach practical
solutions. They will have to, he concluded, if Hungary is to
reach the EU's "first tier."

PREDICTIONS


8. (C) Kuncze did not discount a leadership change before
the 2010 elections. He conceded that SZDSZ is looking for
replacement candidates who are capable of winning the 2010
elections. If Gyurcsany survives the spring, he thought the
ideal timing for replacement would be 2008, after the reforms
are completed and in time for the replacement PM to ride the
post-reform recovery wave into the next elections. Although
some in the MSZP may want to change horses, Kuncze emphasized
that "Gyurcsany was chosen for a reason: he had a better
chance of beating Orban than the alternatives." In his view,
the PM's rivals within the MSZP - Labor Minister Kiss,
Defense Minister Szekeres, and Parliamentary Speaker Szili -
are neither as able nor as inclined to continue the process
of reform.


9. (C) Comment: Although Kuncze will remain in Parliament,

BUDAPEST 00002517 002 OF 002


his departure from the party presidency is being mourned by
politicians and observers across the political spectrum.
Though often described as the funniest man in Hungarian
politics, there is no doubt that Kuncze is a serious player
whose decision to step down could hurt two parties: his own
and Gyurcsany's MSZP. End Comment.
FOLEY