VZCZCXRO9216
RR RUEHIK
DE RUEHUP #0896/01 3511417
ZNR UUUUU ZZH
R 171417Z DEC 09
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC 4762
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 BUDAPEST 000896 
 
SENSITIVE 
SIPDIS 
 
DEPARTMENT FOR EUR/CE JAMIE MOORE AND S/P T. ANDREWS. 
 
E.O. 12958: N/A 
TAGS: PREL EAID ECON SOCI HU
SUBJECT: HUNGARY - INPUT FOR THE QDR'S GLOBAL CONTEXT 
SECTION 
 
REF: STATE 120172 
 
BUDAPEST 00000896  001.2 OF 002 
 
 
¶1.  (U) We welcome the opportunity to contribute to the 
Global Context section of the Quadrennial Diplomacy and 
Development Review.  Our input is coded to the questions 
posed by reftel. 
 
¶A.  (U) To what degree will/can technology empower 
individuals, or civil society in Hungary to exercise a more 
active role in public life?  Are Hungarian officials and 
citizens attuned to (or indifferent) to this issue?  Is 
Hungary supportive of or hostile to expansion of access to 
social networks or other similar tools?  What non-state 
actors will be playing critical roles over the next two 
decades? 
 
(U) Internet and personal computer use are constantly 
increasing in Hungary, and a virtual cell phone operator has 
just made cell phone services available to remote rural 
areas.  Some political parties already use web-based tools, 
e.g., blogs, chat-rooms, and email chains, to mobilize voters 
and influence public opinion.  We expect that all parties 
will have a stronger on-line presence in the future.  The 
Hungarian government is building its e-services capability. 
Data protection concerns have not limited access to services 
or censored content.  What role non-state actors might play 
is still hard to determine.  Commercial content providers are 
expected to focus more on the Internet in the next several 
decades. 
 
¶B.  (U) What attitude do critical publics in Hungary display 
toward the so-called rising powers - India, China, and 
Brazil, for example - and how do they perceive other 
important international players, including key international 
organizations? 
 
(SBU) The Hungarian public has not much focused on the rise 
of India or Brazil.  Some Hungarian business interests, 
however, would like to see their country as a "bridge" for 
China's entry into Central Europe.  Hungary's trade with 
China is growing and expected to increase further once 
significant Chinese rail and cargo airport investments are 
completed. 
 
(SBU) Hungary's relations with Russia are more problematical. 
 Hungary is -- and is expected to remain -- highly dependent 
on Russian natural gas, which constitutes 80 percent of its 
needs.  Russian-Hungarian political and trade relations ebb 
and flow based on the leadership of both countries. 
Hungarians recognize that, because of its proximity, whatever 
happens in Russia will impact their country. 
 
(SBU) Confidence in NATO remains high.  However, the initial 
euphoria following Hungary's accession to the European Union 
appears to have faded and anti-globalization sentiment is 
increasing. 
 
¶C.  (U) What does Hungary identify as the most important 
issues (both internal and external) critical to its own 
development and to international development writ large? 
 
(SBU) Two of the most important strategic issues for Hungary 
are stability in the Western Balkans and energy security. 
Domestically, Hungary is working to address its large level 
of national debt, restore its gross domestic product growth 
rates to pre-2008 economic crisis levels, increase its 
economic competitiveness, and join the Euro zone.  Public 
corruption is also a significant issue.  Finally, there is 
growing awareness that Hungary's large Roma community must be 
better integrated to achieve improved economic development 
and social cohesion. 
 
¶D.  (U) Wht is the Hungarian position on climate change 
issues, or on any resource conflict questions?  What steps is 
the Hungarian government taking to deal with potential future 
demographic challenges? 
 
(U) Hungary ratified the United Nations Framework Convention 
on Climate Change in 1994.  Hungary committed under the Kyoto 
Protocol to reduce carbon dioxide emissions by six percent in 
the period of 2008-2012 compared to a base period of 
1985-1987.  Partly due to the closure of many inefficient 
plants following the collapse of communism in 1990, Hungary 
had a large surplus of Kyoto emission quotas, the sale of 
which generated over $150 million for the Hungarian 
government.  The government used this revenue in 2009 to 
establish under the auspices of the Ministry of Environment 
the "Green Investment," which will support projects that cut 
greenhouse gas emissions from residential and government 
 
BUDAPEST 00000896  002.2 OF 002 
 
 
buildings by improving energy efficiency and using renewable 
energy sources. 
 
(U) Non-governmental organizations have helped improve 
environmental awareness over the last 20 years.  One 
effective government program has been a joint effort between 
the Ministry of Environment and the Hungarian Academy of 
Sciences entitled "Global Climate Changes: Hungarian Impacts 
and Responses," which focused on how climate change effects 
the environment, agricultural production, human health, 
households, and the economy.  However, more could be done to 
promote awareness of the potential impact of climate change 
on Hungary. 
 
(U) There is sharp concern in Hungary about the country's 
declining birth rate, and the opposition Fidesz party is 
likely to propose tax/benefit changes to encourage larger 
families. 
 
¶E. (U) To what extent does "backsliding" pose a threat to 
local democratic movement (or to what degree does Hungary 
perceive this as a threat elsewhere)? 
 
(SBU) Hungary broke with the Soviet Union in 1989 when 
Parliament approved a multi-party system, and it became the 
first country to withdraw from the Warsaw Pact.  All Russian 
troops left Hungary by June 1991, and the country began to 
look westward for new relationships and allies.  Hungary 
joined NATO in 1999 and the European Union in 2004.  It has a 
stable multi-party democracy with a unicameral parliament 
elected every four years.  The Parliament elects the 
president, who serves a five-year term.  The Constitutional 
Court can annul laws passed by Parliament that are determined 
not to be in accordance with the constitution.  After five 
free elections since the end of communism, Hungary is 
preparing for its sixth national election in 2010.  There are 
no signs of any "backsliding" that would pose a threat to 
Hungarian democracy; however, the rise of the far-right 
Jobbik party and its associated para-military group, the 
Magyar Garda, is a troubling sign of how economic dislocation 
can foment extremism. 
LEVINE