SEEMS LIKE OLD TIMES: PARLIAMENT - AND PROTESTORS

C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 001486

SIPDIS

SIPDIS

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

E.O. 12958: DECL: 09/10/2012
TAGS: PGOV KDEM PHUM HU
SUBJECT: SEEMS LIKE OLD TIMES: PARLIAMENT - AND PROTESTORS
- RETURN

REF: BUDAPEST 1474 AND PREVIOUS

Classified By: P/E COUNSELOR ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D)


1. (SBU) The opening day of Parliament's fall session was
marked by strong rhetorical exchanges between the parties and
the return of demonstrators to the streets as a crowd
estimated at over 1,000 gathered in front of the Parliament
to protest government policy on the sale of public assets.

PRESIDENT SOLYOM CALLS FOR UNITY, RESPECT FOR LAW AND ORDER


2. (SBU) In his opening address, President Laszlo Solyom
called on the parties to bring an end to political discord by
respecting fundamental unity and building social consensus on
key issues. In a reference to the debate over the Magyar
Garda (reftel),Solyom affirmed Hungarians' right to free
expression but questioned the use of the Arpad flag as a
symbol. He underscored the government's responsibility to
"hear those who are genuinely afraid" but cautioned strongly
against the "harmful manipulation" of the issue.


3. (SBU) Referring to the prospect of renewed
demonstrations, Solyom denounced violence as "incompatible"
with constitutional order, but warned of negative
consequences from "confusing demonstrators with extremists."
FIDESZ leader Orban rose in response to pledge that "FIDESZ
is a party of law and order and you can count on us."

PM PROMISES REFORM AND RENEWAL


4. (SBU) In a one-hour address that ranged from
philosophical references to legislative recommendations,
Prime Minister Gyurcsany outlined his priorities as job
creation, educational reform, health care, and the
establishment of a "new order." In keeping with his public
references to the worst of the austerity measures being over,
he did not refer to further cuts in social insurance
contributions but did allude to the "eventual" introduction
of property taxes. In a move likely designed to challenge
the opposition's long-time ownership of the issue, the PM
also committed to a "patriotic policy" of (unspecified)
support for Hungary's SME's.

REACTION: PARTIES SPEAK OUT ( AND WALK OUT


5. (SBU) With FIDESZ continuing its practice of walking out
on the PM's addresses, the opposition's response was provided
by faction leader Tibor Navracsics, who contrasted the PM's
"beautiful dreams" with Hungary's 1 percent growth rate.
Hungarian Democratic Forum (MDF) leader Ibolya David also
focused on economic growth, advocating a flat tax and
stronger anti-corruption measures. SzDSz President Koka
pledged continued efforts to "persuade" the MSzP to continue
the process of reforms, specifically highlighting the
importance of health care. Speaking for the party, MSzP
faction leader Ildiko Lendvai conceded the "lack of dialogue"
on previous reform measures but pledged "tangible changes" in
place of "shock therapy."

DEMONSTRATORS WALK IN


6. (SBU) A crowd estimated at over 1,000 gathered in front
of Parliament at twilight in a licensed protest against
government policy regarding the disposition of public assets.
(Note: Effectively overriding his objections, the coalition
voted to return legislation to the President which gives
broad authority to an appointed panel to approve the sale of
public property, including such high-profile para-statal
corporations as Herend china. End note.) Embassy officers
on the scene report a mixed crowd, with Arpad flags in
evidence. Media reports indicate that the crowd jeered the
PM and MSzP MPs as they departed the building, pelting their
cars with garbage and breaking up at 11:00 when facing
dispersal by the police.


7. (C) The demonstration was organized by the organization
"Elolanc" (Human Chain),a civic group that has been
increasingly vocal on environmental issues. The
demonstration at Parliament follows their weekend effort to
sponsor a human chain in downtown Budapest to protest against
the property legislation, and may signal a higher profile on
political issues. According to press reports on September
11, Elolanc had asked its supporters not to bring Arpad
flags, and distanced themselves from demonstrators who
carried them, many of whom were identified as individuals
active in last fall's protests. Hungarian law enforcement
officials tell us privately that the reaction by elements of
the crowd was prompted by MSzP MP's, who appeared on the
balcony of Parliament spitting and making obscene gestures at

BUDAPEST 00001486 002 OF 002


the demonstrators.


8. (SBU) A small group of demonstrators estimated at 15-20
gathered outside the Hungarian Television headquarters on
Monday evening, briefly shouting anti-PM slogans before
moving on toward Parliament.

COMMENT: FALL RERUNS


9. (C) Parliament's return brought few surprises, among them
Solyom's balanced remarks supporting the right to free
expression but denouncing the politics of hatred. The Prime
Minister's comments were ambitious in scope but lacking in
detail, particularly as regards his plans to stimulate growth
and promote Hungary's SME's. Observers here are not
surprised by the return of demonstrators, and there is the
sense that any number of issues have the potential to prompt
further protests in the months ahead. End Comment

FOLEY