Identifier
Created
Classification
Origin
09BUDAPEST297
2009-04-15 11:56:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Budapest
Cable title:  

ONE YEAR, ONE GOVERNMENT, ONE FORINT

Tags:  PREL PGOV PINS ECON HU 
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VZCZCXRO3835
PP RUEHIK RUEHPOD RUEHYG
DE RUEHUP #0297/01 1051156
ZNR UUUUU ZZH
P 151156Z APR 09
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC PRIORITY 4090
INFO RUEHZG/NATO EU COLLECTIVE
RUEAIIA/CIA WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
RHEHAAA/NATIONAL SECURITY COUNCIL WASHINGTON DC
UNCLAS SECTION 01 OF 02 BUDAPEST 000297 

SENSITIVE
SIPDIS

DEPARTMENT FOR EUR/FO AND EUR/CE JAMIE LAMORE. PLEASE PASS
TO NSC JEFF HOVENIER AND KHELGERSON

E.O. 12958: N/A
TAGS: PREL PGOV PINS ECON HU
SUBJECT: ONE YEAR, ONE GOVERNMENT, ONE FORINT

REF: BUDAPEST 276 AND PREVIOUS

BUDAPEST 00000297 001.4 OF 002


UNCLAS SECTION 01 OF 02 BUDAPEST 000297

SENSITIVE
SIPDIS

DEPARTMENT FOR EUR/FO AND EUR/CE JAMIE LAMORE. PLEASE PASS
TO NSC JEFF HOVENIER AND KHELGERSON

E.O. 12958: N/A
TAGS: PREL PGOV PINS ECON HU
SUBJECT: ONE YEAR, ONE GOVERNMENT, ONE FORINT

REF: BUDAPEST 276 AND PREVIOUS

BUDAPEST 00000297 001.4 OF 002



1. (U) Summary. As expected, in a constructive
vote-of-no-confidence, with opposition parties abstaining or
not voting, Hungarian Socialist and Free Democrat
parliamentarians joined forces to elect Gordon Bajnai as
Prime Minister April 14. Prior to the vote, Bajnai outlined
his economic reform plans with the mantra of one year, one
government, one forint salary. Promising to be a crisis
manager to restart the Hungarian economy, reduce State
expenditures and regain the confidence and trust of the
people, Bajnai announced six new ministers. Opposition
parties continued their call for new elections as a small
number of protesters clashed with police following the
Parliamentary vote. End summary.


2. (U) While several thousand protesters gathered in front of
Parliament demanding new elections, Socialist (MSzP) and Free
Democrat (SzDSz) MPs garnered 204 votes, 11 more than the
required simple majority, to elect current Economic Minister
Gordon Bajnai as Prime Minister in the country's first-ever
constructive vote-of-no-confidence. The 173 MPs from
opposition Fidesz party and the Christian Democrats (KDNP)
opted not to vote, and the Hungarian Democratic Forum (MDF)
MPs abstained.


3. (U) In his farewell address prior to the vote, outgoing
Prime Minister Ferenc Gyurcsany acknowledged he "had not been
strong enough or frank enough to push the necessary changes"
while Prime Minister. Stating that "the biggest problem is
not the economic crisis but rather the divisive political
climate in which citizens do not view others as fellow human
beings," Gyurcsany called upon the opposition to support
Bajnai's reform measures. Defaming and enticing passion
against the new government Gyurcsany said, would be "a crime
against the country and not the new government, and
politicians will harm more than the economy if they don't
understand this."


4. (U) Following Gyurcsany to the podium, Gordon Bajnai began
by stating time is short and we must put an end to the
political crisis in order to address the economic issues.

Stating he has no political ambitions, Bajnai outlined his
plans to serve as a "crisis manager for one year - leading
one government for a one forint salary - and requested
Parliament's confidence in his program to protect jobs,
strengthen the forint and regain the trust and confidence of
the Hungarian people. Commenting that the details of his
reform measures will become public April 20, Bajnai committed
to reducing State expenditures and focus on job creation,
specifically mentioning plans to reduce ministers salaries by
15 percent, eliminate public employees' 13th month pay,
reduce child support, and lower taxes on businesses. Bajnai
also announced his selection of six new ministers to head the
Finance, Foreign Affairs, Economic, Transportation and
Energy, Social Affairs and Labor, and Minister without
Portfolio for Secret Services. (septel).


5. (U) In response to Bajnai's opening remarks, Party faction
leaders' comments reflected the divisive political climate
noted in Gyurcsany's farewell speech. MSzP President Ildiko
Lendvai took opposition Fidesz Party President Viktor Orban
to task for continuing to "fight old battles that will make
this country a battlefield." Fidesz faction leader Tibor
Navracsics responded by calling for new elections due to the
seven years of failed social programs under the Socialist
government. Noting that MszP and SzDSz do not want to give
voice to the voters, he said there will be no real expert
government as they are "only shuffling the same old deck with
the same old people." Repeatedly pointing his finger at
Bajnai, Navracsics asked "why are you here if you have no
political ambitions?" Noting Bajnai's three years' service
in the "failed" Gyurcsany government, Navracsics said this
constructive no-confidence motion lacks legitimacy and will
not be supported by the people. KDNP President Semjen called
the motion "a destructive vote-of-no-confidence," stating his
party will not talk to Bajnai. SzDSz President Gabor Fodor
acknowledged the pros and cons of early elections, but said
his party supports the expert government because new
elections would mean several more months of inaction. Noting
that "we have heard nothing from Fidesz as to a solution,"
now is the time to take the necessary steps to initiate
changes outlined in the reform Alliance package. MDF
vice-president Herenyi said his party cannot support Bajnai's
program, however he urged Bajnai to put the reform measures
in place during the next three months and then resign in

BUDAPEST 00000297 002.2 OF 002


order to allow new elections.


6. (U) In closing remarks prior to the vote, Bajnai first
responded to Navracsics, commenting that apparently "politics
is all about who's in power - this is why I am not a
politician." Noting the legitimacy and legality of
Parliament's vote, Bajnai said "I am here because our
country is in danger, we have postponed structural changes,
but now is not the time for a long campaign, now is the time
for crisis management." Stressing that what is most
important is how we use "public power...I agree with the
demonstrators, nation and home must come first. We have two
enemies - lost hope and hope for a miracle. What we require
is meticulous work and a long-term vision. At some point we
can discuss early elections, but not now" - underscoring his
mandate of one year, one government, one forint.


7. (U) Protesters began to gather in front of Parliament at
midday, with an estimated 5-7 thousand on hand during the
late afternoon vote on the constructive no-confidence motion.
Although noisy, the demonstrators were relatively peaceful,
even refusing to allow Gabor Vona to speak in his capacity as
Jobbik President, forcing him to take a podium as the leader
of the Magyar Garda. With thunderstorms significantly
diminishing the numbers, the remaining several hundred
demonstrators confronted the police at several locations in
the vicinity of Parliament. According to press reporting,
approximately ten protesters and ten police were injured,
with an ensuing ten arrests as the demonstrators dispersed
around nine PM. Earlier in the day, two Socialist party
offices in towns outside Budapest were attacked with Molotov
cocktails and threatening letters attached to bricks. Damage
to the offices was minimal.


8. (SBU) Comment. Facing a crumbling economy and an
aggressively nasty political environment, Bajnai faces a
tough job. Polling last week found only eight percent
support for his election. There is still great skepticism
that Socialist MPs will support his reform package,
especially as it begins to bite. Absent this continuing
support, Bajnai indicated that he would not hesitate to
resign. With labor unions calling for large demonstrations
April 18, it is far too early to assume stability has
arrived. End comment.
Levine