Identifier
Created
Classification
Origin
07BUDAPEST1097
2007-07-06 11:29:00
CONFIDENTIAL
Embassy Budapest
Cable title:  

NEVER A BOAST OR A BRAG: WHAT WE (OVER)HEARD AT

Tags:  PGOV PREL ECON EFIN ENRG HU 
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VZCZCXYZ0039
PP RUEHWEB

DE RUEHUP #1097 1871129
ZNY CCCCC ZZH
P 061129Z JUL 07
FM AMEMBASSY BUDAPEST
TO SECSTATE WASHDC PRIORITY 1541
C O N F I D E N T I A L BUDAPEST 001097 

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DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/04/2012
TAGS: PGOV PREL ECON EFIN ENRG HU
SUBJECT: NEVER A BOAST OR A BRAG: WHAT WE (OVER)HEARD AT
THE FOURTH OF JULY

Classified By: ACTING DCM ERIC V. GAUDIOSI;
REASONS 1.4 (B) AND (D)

C O N F I D E N T I A L BUDAPEST 001097

SIPDIS

SIPDIS

DEPARTMENT PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/04/2012
TAGS: PGOV PREL ECON EFIN ENRG HU
SUBJECT: NEVER A BOAST OR A BRAG: WHAT WE (OVER)HEARD AT
THE FOURTH OF JULY

Classified By: ACTING DCM ERIC V. GAUDIOSI;
REASONS 1.4 (B) AND (D)


1. (SBU) Post's commitment to active but non-partisan
outreach was rewarded with a stellar turn-out by contacts
across the political spectrum at the Fourth of July reception.


2. (SBU) Prime Minister Gyurcsany attended his first July
4th reception as PM, the latest signal of his desire to
affirm his commitment to our bilateral relationship and to
the broader transatlantic alliance. Arriving to find the
Hungarian Air Force band playing on the EMR lawn, Gyurcsany
quipped "are we going to dance?", making fun of the criticism
directed at him for a video clip in which he apes Hugh Grant
in a scene from "Love Actually." As the PM posed for
pictures with the MSG, his wife, Dr. Klara Dobrev, commented
on the change of venue this year to the EMR grounds, noting
that "everything is different this year - especially the
atmosphere."


3. (SBU) The opposition also turned out in full force, led
by FIDESZ parliamentary faction leader Tibor Navracsics, who
commented that he "would not have missed" the reception.
There were some welcome signs of communication across the
aisle, though the comments were often barbed. FIDESZ MP
Zsolt Nemeth and MSZP MP Vilmos Szabo, chair and deputy chair
of the Foreign Affairs Committee, joked that they were going
on an upcoming trip to China together because they "don't
trust the other to go alone." In a reference to the ongoing
feud with the SZDSZ over health care and taxation, MSZP MP
Jozsef Kozma remarked wryly "now that we're in recess we only
have our coalition partners to fight with." Though noting
his satisfaction with the government's intention to make a
nominal increase in defense spending, Defense Minister
Szekeres made clear that he is less happy with Gyurcsany's
choice to serve as his deputy, MSZP MP (and outspoken MOD
critic) Agnes Vadai.


4. (SBU) These jibes aside, there was strong consensus on
energy security, with officials from all parties expressing
their resolution to stave off the OMV takeover of MOL. One
energy expert noted that the issue should serve as a "wake-up
call" for Hungary.


5. (SBU) Other analysts remarked on the divide between the
economic and the business communities' perceptions of the
economy, with the former decidedly positive on deficit
reduction efforts and the latter focused on concerns
regarding transparency, taxation, and competitiveness. One
pro-opposition analyst remarked that economic performance
would exceed the government's projections, a prospect that
has some of our FIDESZ contacts concerned. Despite their
huge lead in recent polling, many in the party recall
previous come-from-behind victories by the MSZP and fear that
"they've got us right where they want us ... again." Several
observers from the diplomatic corps commented on FIDESZ's
commitment to mending fences with the international community
in general and the US in particular, though they noted that
Orban has continued to send mixed messages, particularly
regarding foreign investment.


6. (C) Comment: As Dr. Dobrev observed, everything was
different this year. The OMV takeover bid has many looking
to the West - and not to Brussels - for support. Our
initiative on climate change has silenced - or converted -
many critics, and contacts from all parties are emphasizing
the importance of continued U.S. engagement in the Balkans.
With the opposition turning out in force, in part to
demonstrate their alignment with the US on key issues, the
MSZP also marshalled a strong showing in order to prevent
FIDESZ from carrying the day. With the size of the crowd and
the diversity of representation, we were the clear winner
from this competition. End Comment.



FOLEY