Leaders of Hungary’s governing Socialist Party (MSZP) have started to threaten their coalition partner, the Free Democrats (SZDSZ), with the prospect of early elections in order to quiet them down, writes Index.hu.
The two parties are currently embroiled in a debate over a recently-adopted health insurance law that opens the door to private capital in the country’s national health care system. While several leading Socialists are considering changes to the law that would make it less market-friendly, the Free Democrats are adamant that the law should remain as is.
But members of the MSZP think it is in the interests of the SZDSZ to back off, as a proposed new referendum on health insurance – which the governing coalition assumes it would lose – would result in early elections and the SZDSZ losing its seats in Parliament.
The Socialists think that the force behind the Liberals’ refusal to water down the insurance bill is chairman János Kóka, who is currently fighting to retain his post, following revelations that his election was tainted by voting irregularities.
According to Index, several Socialists are worried that their partners’ threats to leave the governing coalition will cause the negotiations between the parties to drag on until there is no time to amend the health care law and avoid another referendum. They are especially worried about the possibility that the date of the referendum may correspond with the next round of elections for the European Parliament.
Meanwhile, members of the MSZP are themselves debating whether private investment should be allowed into the country’s health insurance system, with half of them arguing for and half against it at a caucus meeting last Tuesday. The party is currently holding a meeting of leaders in the countryside where they are attempting to find a solution to the coalition crisis, and make a decision on the health care situation. If a decision was made to exclude private capital from the system, the new referendum supported by the opposition would become unnecessary, but it would also mean that SZDSZ would quit the coalition.
In related news, Socialist caucus leader Ildikó Lendvai told Népszava on Friday that withdrawing the health insurance law – as the opposition wishes – is out of the question, but changes to it are possible. She also said the party was not in crisis and was not thinking about replacing Prime Minister Ferenc Gyurcsány, but conceded there is a need for strengthening public trust, which makes certain changes necessary.
Such questions of trust will likely be raised at the national party meeting to be held on March 29. Meanwhile, a quick crisis meeting was recently held where the Socialist party leadership decided to support Gyurcsány and his program, at least until June 2009, as long as he involves them more in the decision-making process, reports ma.hu.
Rather than listening to others and building consensus, scare them into submission and continue with autocratic policy making… Perhaps this also works for the financial markets?