EUROPE: POPULAR UNREST IN BUDAPEST; UNITED NATIONS: KOFI

UNCLAS SAO PAULO 001013 SIPDIS SIPDIS STATE INR/R/MR; IIP/R/MR; WHA/PD DEPT PASS USTR USDOC 4322/MAC/OLAC/JAFEE E.O. 12958: N/A TAGS: KMDR OPRC OIIP ETRD BR SUBJECT: EUROPE: POPULAR UNREST IN BUDAPEST; UNITED NATIONS: KOFI ANNAN; SAO PAULO ¶1. "Announced Crisis Reflects Increasing Dissatisfaction With Entry in the EU" Leading national circulation daily liberal Folha de S. Paulo's Budapest correspondent reports (9/20): "The tape showing the confirmation that Hungary's Prime Minister Ferenc Gyurcsany lied about the budget during four years is just the iceberg tip of problems that Hungarian citizens are expected to face from now on. With the leak of the tape, what the economic analyst have suspected was confirmed: economic figures in Hungary have been manipulated for a long time, especially because of EU's pressures so that the nation quickly normalize its economy by reducing the public deficit to be able to use resources in structural reforms.... The European Commission's pressure are expected to increase even more, thereby complicating the life of the government as well as of the citizens, who will be affected by further tax increases in coming months.... Monday's protests reflect not only a current situation of intense political instability in Hungary, but mainly the Hungarians' dissatisfaction with their nation's role in the EU." ¶2. "Secretary Tries To Rehabilitate The UN" Political columnist Newton Carlos commented (9/10) in leading national circulation daily liberal Folha de S. Paulo: "The boldness with which UN Secretary General Kofi Annan, who is concluding his term, have acted, especially in opposition to the US, predicts perhaps more affirmative days for the organization.... The UN was knocked out with the invasion of Iraq without the Security Council's authorization. The Bush administration put in practice its 'preventive attack' doctrine.... With the worsening of the situation in Iraq, Annan gradually raised the tone of his 'observations.' Now he said before Condoleezza Rice what Bush does not want to hear - that Iraq is on the threshold of a civil war and destabilizes the region. He visited ten nations, including Syria and Iran, in an effort to implement a Security Council's resolution aimed at a ceasefire in Lebanon. He's trying to affirm the UN's universal nature.... The election of a new secretary general will be decided by negotiations among the five permanent members, which have right to veto any resolution. The idea of 'parliamentarizig' the UN, giving more powers to the General Assembly, has been revived. However, the UN continues submitted to a system of powerful nations. But its survival and Annan's freer eloquence are considered advances." McMullen