Hungarian Prime Minister Gyurcsany initiates unpopular economic reforms after admitting to public lies about the country's budget deficit in attempt to win re-election.
Protesters hit the streets in Budapest, Hungary on September 17, 2006 after the public release of an audio recording in which Prime Minister Ferenc Gyurcsany admitted that both he and the Socialist Party lied in order to win April’s general election. Demonstrations throughout the country lasted until the end of October.
Portions of the recording, originating from a closed door meeting of the Socialist Party’s parliamentary caucus, were broadcast by Hungarian state radio and later appeared on several web sites. In the meeting, Gyurcsany, in a profanity-laden speech, said, "Evidently, we lied throughout the last year-and-a-half, two years. It was totally clear that what we are saying is not true.... We lied in the morning, we lied in the evening,"
The party’s lies centered around the poor state of Hungary’s economy. Fearing a loss of political power in the April 2006 election, Gyurcsany and the Socialist Party ignored the country’s budget deficit and kept secret, their plans for economic reforms that would cost Hungarian citizens at least one month’s additional salary.
Since winning the election, Gyurcsany’s government has launched a harsh economic program that includes an increase in gas prices and taxes. The plan also introduced a property tax, fees for doctor visits and for university students. and other measures. The purpose of this policy is to decrease Hungary’s huge budget deficit from approximately 10.1% of GDP in 2006 to 3.2% in 2009. The European Union has hesitantly welcomed the program, but only because of the absence of other proposals.
The Prime Minister also admitted a lack of any fundamental accomplishments by his Socialist government in the preceding four years. In the same speech, Gyurcsany acknowledged, "You cannot quote any significant government measure we can be proud of, other than at the end we managed to bring the government back from the brink. Nothing. If we have to give account to the country about what we did for four years, then what do we say?"
Despite the calls for his resignation, Gyurcsany fights to remain in office. He is disliked in his own party because his policies are seen to be pro-market. He truly believes he is the only person with the ability to initiate a much-needed economic package, and that he has the support of the Socialists, and their junior coalition partners, the Free Democrats.
Gyurcsany seems to care deeply about Hungary’s future. He recognizes that his government must now work at break-neck speed to make up for the deficiencies of their previous term in power.
References
Condon, Christopher. “Hungarian PM admits lying.” Financial Times. September 18, 2006.
“Hungarian budget deficit to be corrected in 2009 under new Convergence Programme; but rigorous implementation will be key to meeting targets.” Europa - European Union. September 26, 2006.
“Q&A: Budapest clashes.” BBC News. October 24, 2006.
“We lied to win, says Hungary PM.” BBC News. September 18, 2006.