Identifier
Created
Classification
Origin
07BUDAPEST1243
2007-08-01 12:14:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Budapest
Cable title:  

VISIT OF CHAIRMAN LANTOS TO HUNGARY, AUGUST 12-20,

Tags:  PGOV PREL ENRG HU 
pdf how-to read a cable
VZCZCXYZ0001
PP RUEHWEB

DE RUEHUP #1243 2131214
ZNR UUUUU ZZH
P 011214Z AUG 07
FM AMEMBASSY BUDAPEST
TO SECSTATE WASHDC PRIORITY 1662
UNCLAS BUDAPEST 001243 

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EUR/NCE AND H; PLEASE PASS TO CHAIRMAN LANTOS

E.O. 12958: N/A
TAGS: PGOV PREL ENRG HU
SUBJECT: VISIT OF CHAIRMAN LANTOS TO HUNGARY, AUGUST 12-20,
2007

UNCLAS BUDAPEST 001243

SIPDIS

SENSITIVE
SIPDIS

DEPARTMENT FOR EUR/NCE AND H; PLEASE PASS TO CHAIRMAN LANTOS

E.O. 12958: N/A
TAGS: PGOV PREL ENRG HU
SUBJECT: VISIT OF CHAIRMAN LANTOS TO HUNGARY, AUGUST 12-20,
2007


1. (U) Embassy Budapest warmly welcomes the visit of
Chairman Lantos to Hungary.

SUMMER OF NO LOVE LOST


2. (SBU) Your trip comes as Hungarians takesa much-needed
break after a year characterized by conflict over domestic
politics and drift in foreign policy.


3. (SBU) Hungary is subject to many of the regional trends
highlighted in your recent hearings on Central and Eastern
Europe: frustration born of unrealistic expectations, fatigue
with reform, and frequent resort to populist rhetoric. The
PM is on the defensive personally and politically: the
opposition continues to press him on all fronts, and he is
increasingly embattled within the coalition and isolated even
within his own MSZP. Despite pressure from the SzDSz on key
initiatives including health care, energy security, and
transparency, progress has largely stalled. Inside the
government and out, many are criticizing the PM for combining
the mistakes of a novice government with the exhaustion of a
lame duck administration.


4. (SBU) This has been particularly evident in foreign
affairs, where Gyurcsany's comments on key issues including
Energy Security and Missile Defense have been ambiguous at
best. The result has been a government that risks appearing
as a "neutral ally." We are awaiting confirmation that you
will have the opportunity to discuss these issues candidly
and privately with the PM during your visit.

FIDESZ: SAYING NO ... AND MAKING EYES


5. (SBU) By contrast, FIDESZ is working hard to repair its
relationship with us. Whether through calculation or
conviction, they have played the transatlantic card by
aligning themselves with us on key issues. While other and
more moderate voices are being heard within FIDESZ, it is
still Orban's party. Although he has no immediate
constitutional means to force Gyurcsany from office, the
party will try to cast a referendum next spring as a de facto
vote of confidence in the government. We're in touch with
Orban's staff regarding a potential meeting during your time
here.

GETTING ATTENTION


6. (SBU) We continue to work hard to maintain good working
relationships across the political spectrum and to keep the
focus on the policy issues rather than the personal
animosities. Trips by Charles Gati and Assistant Secretary
Fried have helped reinforce our message, and the government
knows that we are looking for clear statements and clearer
actions to show their strategic commitment.

GETTING RESULTS


7. (SBU) Few have been forthcoming, however, and the picture
remains mixed. The PM's most recent steps - trips to Russia
and reported interest in a questionable deal on energy with
Ukraine - have underscored our concerns, while talk of a
slight increase in defense spending and the MOD's aggressive
press to host the C-17s of NATO Strategic Airlift Consortium
at Papa Air Base (both issues we hope you can discuss in a
meeting with DefMin Szekeres) are steps in the right
direction.

SEASONAL AFFECTIVE DISORDER ... ALL YEAR-ROUND


8. (SBU) The high coefficient of political friction has left
the average Hungarian "grumbling all the way to Lake Balaton"
amidst a historic heat wave. While the financial community
continues to focus on the strength of the forint and the
government's signal successes in reducing the deficit,
serious concerns regarding both competitiveness and
transparency remain. Hungary is largely standing still on
reform and losing ground relative to its neighbors in the
quest for economic growth and in terms of attractiveness to
foreign investors. Politically, opinion leaders tell us they
are "always pessimistic ... but finally correct" in their
concern over the issues raised in your hearings: the extent
of Hungary's integration into the transatlantic community,
the maturity of its parties, and the flexibility of its
institutions.


9. (U) We look forward to welcoming you in person.
FOLEY