VZCZCXRO2591
OO RUEHDBU RUEHFL RUEHKW RUEHLA RUEHROV RUEHSR
DE RUEHUP #2111/01 2910905
ZNY CCCCC ZZH
O 180905Z OCT 06
FM AMEMBASSY BUDAPEST
TO RUEHC/SECSTATE WASHDC IMMEDIATE 0215
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE PRIORITY

C O N F I D E N T I A L SECTION 01 OF 02 BUDAPEST 002111 
 
SIPDIS 
 
SIPDIS 
 
DEPARTMENT PLEASE PASS TO NSC - DAMON WILSON 
 
E.O. 12958: DECL: 10/11/2011 
TAGS: PGOV KDEM HU
SUBJECT: ORBAN TELLS AMBASSADORS INSTABILITY IS "A RISK I'M 
PREPARED TO TAKE" 
 
REF: BUDAPEST 2065 AND PREVIOUS 
 
Classified By: POL/C ERIC V. GAUDIOSI; REASONS 1.4 (B) AND (D) 
 
¶1.  (C) FIDESZ leader Viktor Orban told G-7 Ambassadors 
October 12 that he believes Prime Minister Gyurcsany "can't 
survive" in the face of reduced real income stemming from 
higher inflation, increased popular discontent re austerity 
measures, and continued opposition from the right.  Charging 
the Gyurcsany government with "criminal negligence" on the 
economy, he charged that Hungary's economic situation was 
worse than the government is portraying.  He asserted that 
Budapest's municipal debt had not been reflected in national 
calculations and that expenses for colleges and prisons would 
be "worse than expected."  He believes the forint remains 
overvalued, and predicts inflation climbing to 10%. 
 
¶2.  (C) The end result, he predicts, is that MSZP will blink 
first in the present showdown by withdrawing their support 
from Gyurcsany.  Although FIDESZ will likely conclude its 
large-scale demonstrations following its alternate events on 
October 23, he believes public discontent will grow over the 
winter as austerity measures hit home.  FIDESZ is already 
working with groups affected by the "Gyurcsany package" to 
discuss a "National Strike Committee" to coordinate strikes 
in the coming weeks.  Ultimately, Orban believes that support 
for the PM will decline to 20% next year, and that he will be 
out of office "next spring."  Indeed, he suggested that 
"cracks are already appearing" in the governing coalition. 
 
¶3.  (C) Orban gave new details regarding his proposal for a 
"government of experts," suggesting that it would function 
not as the cabinet but as a separate body reporting to the 
President.  He proposed that the experts be grouped in panels 
with specific responsibility for reforms in pensions, 
education, health, state administration, and the 
constitution.  He foresaw "6 to 12 months to agree on the 
issues" and "6 to 12 months to agree on the financing," and 
predicted that constitutional reform would be the most 
sensitive - but the most important - area.  When asked why he 
did not put forward a substantive reform agenda in 
Parliament, Orban responded that there could be no "business 
as usual."  Such a step would only "give the government our 
good ideas."  Such tactics might work elsewhere, he 
concluded, but in Hungary "politics is all about winning 
elections." 
 
¶4.  (C) Taking a step back to comment on political 
development in Hungary since 1990, Orban and an accompanying 
official from the European Peoples' Party (EPP) commented 
that Hungary had never completely discredited the old system 
by disowning its Communist Party.  They believe that voting 
has become increasingly about "the person, not the policy," 
and that voters who had supported Gyurcsany, he continued, 
now feel "cheated."  The MSZP's image had also changed in 
that time period, he continued.  Although the party had 
always "understood power" and the importance of its 
grass-roots network, its "slick" new leadership has become 
associated with "money ... and lies."  When asked if he 
himself might not be blamed by the public for promoting 
instability, he responded "that is risk I'm prepared to take." 
 
¶5.  (SBU) Orban has, however, backed away from his previous 
insistence that FIDESZ will not participate in any of the 
official 50th anniversary events, and has now reportedly 
agreed that the party will attend portions of the program at 
which President Solyom will speak.  At the same time, his 
public statements indicate that he is setting his sights 
higher than just Prime Minister Gyurcsany's removal.  In an 
article published October 14, Orban states that FIDESZ's goal 
is to reduce the MSZP's popularity to its "lowest levels 
ever." 
 
¶6.  (C) Comment: Orban continues to play his zero-sum game 
with malicious glee.  As he continues efforts to build on 
FIDESZ's strength at the grass-roots level to pressure the 
Gyurcsany government (reftel), he is also keeping an eye on 
the party's internal dynamic.  By putting popular Debrecen 
Mayor Lajos Kosa out in front in representing the interests 
of FIDESZ-led regions to the GoH with regard to the National 
Development Plan (reftel), he has given a potential rival a 
difficult task.  Success could further improve advance Kosa's 
national reputation, but his failure might serve Orban's 
political interests just as well.  As one Corvinus University 
political scientist explained, Orban is a "political animal" 
willing and able to capitalize on popular discontent.  Right 
now, the professor explained, austerity measures are 
highlighting an economic situation that has not matched 
either the public's expectations or the politicians' campaign 
promises.  Our European colleagues, already dealing with 
 
BUDAPEST 00002111  002 OF 002 
 
 
"enlargement fatigue" in their own capitals, note in the 
situation here signs of "accession fatigue" among Hungarians, 
who expected assistance - not austerity - from the EU.  These 
frustrations have given Orban an audience beyond his 
traditional base, and he is working to keep their attention 
and to attract their support.  End Comment. 
 
 
FOLEY