Identifier
Created
Classification
Origin
07BUDAPEST1238
2007-07-31 14:45:00
CONFIDENTIAL
Embassy Budapest
Cable title:  

ENTER STAGE LEFT: REFERENDUM OPENS THE DOOR FOR

Tags:  PGOV KDEM HU 
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VZCZCXRO7020
PP RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #1238 2121445
ZNY CCCCC ZZH
P 311445Z JUL 07
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 1656
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
C O N F I D E N T I A L BUDAPEST 001238 

SIPDIS

SIPDIS

DEPARTMENT FOR EUR/NCE; PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/30/2012
TAGS: PGOV KDEM HU
SUBJECT: ENTER STAGE LEFT: REFERENDUM OPENS THE DOOR FOR
GYURCSANY'S OPPONENTS WITHIN THE MSZP

REF: A. A) BUDAPEST 1214


B. B) BUDAPEST 1097

C. C) BUDAPEST 1043

D. D) BUDAPEST 1059

Classified By: P/E Counselor Eric V. Gaudiosi; Reasons 1.4 (b) and (d).

C O N F I D E N T I A L BUDAPEST 001238

SIPDIS

SIPDIS

DEPARTMENT FOR EUR/NCE; PLEASE PASS TO NSC FOR ADAM STERLING

E.O. 12958: DECL: 07/30/2012
TAGS: PGOV KDEM HU
SUBJECT: ENTER STAGE LEFT: REFERENDUM OPENS THE DOOR FOR
GYURCSANY'S OPPONENTS WITHIN THE MSZP

REF: A. A) BUDAPEST 1214


B. B) BUDAPEST 1097

C. C) BUDAPEST 1043

D. D) BUDAPEST 1059

Classified By: P/E Counselor Eric V. Gaudiosi; Reasons 1.4 (b) and (d).


1. (C) As the Constitutional Court conducts what may be the
final review of questions formulated by the opposition to
challenge elements of the Gyurcsany government's reform
agenda, the upcoming referendum may increasingly present an
opportunity for the PM's rivals within the MSZP to
rationalize an overt move to challenge the PM.

THE UPCOMING REFERENDUM AND THE PERMANENT CAMPAIGN


2. (C) With FIDESZ focused on clearing the final legal
hurdles to the referendum before beginning a massive
signature drive for voting in the spring, opposition sources
from party president Orban to individual staffers are
painting the referendum as an opportunity to energize and
expand the party's base in anticipation of the 2009 European
Parliamentary elections and the 2010 Hungarian national
elections (ref d). This would keep Hungary in what one
analyst termed "a permanent campaign" for the better part of
the next three years.

THE LEFT HOOK


3. (C) While the advantages to the opposition are obvious,
the referendum may also provide the MSZP with a credible
pretext to remove PM Gyurcsany. Orban has predicted that the
Socialists are "waiting for Gyurcsany to have an 'accident'"
(ref c),and in separate meetings with the Ambassador both
Cabinet Minister Peter Kiss and MSZP Parliamentary Faction
Leader Ildiko Lendvai - members of the party's more
traditional wing - have cast the referendum as a chance to
"improve dialogue," "adjust course," and "correct mistakes we
could have avoided" (ref b). Commenting on the perception
that "the government is against everyone," Lendvai mused
openly that it would make little sense to "reject reforms but
keep Gyurcsany" (or presumably vice-versa).


4. (C) Kiss, Lendvai, and other MSZP leaders have emphasized
the importance of the referendum as a "step away" from the
street" and toward a constitutional process, but Kiss
expressed little doubt that the outcome would favor the
opposition, asking "who would vote to pay for services
they're used to getting for free?" Moreover, their rhetoric
contrasts with PM Gyurcsany's harder line. Hardening his
position from an original pledge to "respect the results of
the referendum," Gyurcsany has more recently remarked that
the results "won't matter," indicating that the government
will simply "find other revenue sources" to fund its reform.

LEAVING SO SOON?


5. (C) Comment: That may be a bridge too far for a party
whose popularity plummeted in the fall and has yet to
recover. Although the reform process has largely stalled,
Lendvai and others fear that the party will continue to take
the blame for the "psychological impact" on the public, which
believes "too much is happening too fast." Despite her
expressions of concern about showing weakness in the face of
a challenge from FIDESZ, a clear expression of public
opposition to the reforms introduced to date would be a
plausible pretext to act on the obvious reservations of
traditionalists within the MSZP who never liked reforms ...
or Gyurcsany. Most observers believe the referendum will
receive the 50 percent turn-out required by law, and current
polling shows the majority of the questions receiving support
from a decisive majority of respondents. If the referendum
does return such a clear public rejection, ambiguity in
Hungarian law would in theory allow the government to
approach the reforms from a different angle. In practice,
however such a result may well embolden the MSZP to oust
Gyurcsany - as it did his predecessor - and to use the months
before the 2009 elections to distance itself from his record.
Ironically, some FIDESZ sources fear just such a maneuver,
having seen the MSZP climb off the canvas to overcome
significant deficits in the polls and win previous elections
(ref a). We will watch this space closely in the months
ahead. End Comment.
FOLEY