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 
 
 
¶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