The decision was taken last night by leaders of junior governing party SZDSZ to quit the coalition with the Socialist party MSZP as of April 30, reports FigyelőNet. The announcment comes after Prime Minister Ferenc Gyurcsány dismissed Health Minister Ágnes Horváth, who was nominated to the post by the Free Democrats. The two parties will hold a crisis meeting this afternoon.
After the Monday evening meeting, SZDSZ Chairman János Kóka announced that liberal members of the government will resign on April 30. At the Tuesday afternoon meeting, the two parties will discuss how the resignations can be carried out with minimal disruption. Kóka stressed that his party’s decision is not about personnel issues but about “the prime minister turning his back on the jointly agreed compromise reform program.”
He said his party regretted the coalition had been unable to complete its work towards solving the problems in health care and education the political elite has swept under carpet since the regime change. Nevertheless, he added that SZDSZ MPs would continue to campaign for necessary reforms in Parliament – regardless of the party’s political position. The liberal leader insisted that for further austerity measures to be avoided and economic growth to resume, the government would have to take the opinions of economists and health care and education experts seriously – all of whom agree that the reforms should be continued.
When asked what his party would do if Prime Minister Ferenc Gyurcsány were to resign, he said that such a decision would represent a change in government. As the liberals only stated that they do not wish to be a part of the current government, they would have to review their position in this event.
Kóka also said that a minority government was capable of completing its cycle. He added that he did not wish to help opposition leader Viktor Orbán into power, because his party believes the policies put forward by Fidesz would result in “certain collapse.” The net effect is that SZDSZ will resist calls for early elections, particularly as the party is unlikely to exceed the 5% threshold required for entry to parliament.
MSZP Spokesman István Nyakó maintained that the party continues to support the prime minister and his reforms.
re the sidebar on Koka knowing that Orban’s policies would cause HU to collapse – does anybody know what parts of the policies are bad? And why is it that the current whirlwind of changing policies that have little public support are not going to cause the “collapse?”
Fidesz proposed socialist subsidy policies, and the lack of support for the current policies (logical though insufficient) are both gonna cause a collapse. Only difference is the speed at which it happens. Decent Hungarians(?)need to step up to the plate,but everyone’s too busy blaming Fidesz,Socialists,Slovaks,Jews,Guard(Gypsies), Romanians, MNCs, global warming etc to really do anything positive.So far, no backseat commentator has come up with any decent suggestion to reduce the deficit.
There’s no easy, short-term solution. We have a major disaster here, created by 20 years of wide-spread corruption and incompetence. Valuable state assests were sold to foreign corporations for next to nothing plus bribe money. These corporations pay no taxes, invest nothing in Hungary, and leave none of the profit behind. Wages are low, taxes are high. You cannot run a government on personal income taxes alone. We have to take one step back and cut taxes before we can go forward.
The most valuable “assets” MOL,OTP and others are still in Hungarian hands,as are the bribes. The rest weren’t really that valuable or internationally competitive.The biggest investors in Hungary Audi,Suzuki,Flex etc) built their plants using own money,technology,hired thousands of well-paid workers,paid full taxes on labour,built infrastructure and created competitive local companies for global markets.
MOL snaps up valuable state assets in neighbouring countries with less economic contribution
Is Flextronics still that deeply entrenched here or have they moved much of their operations abroad? As I recall, Audi was going to move – when they were told that they’d at least have to pay the 4% tax – and then got a dispensation. And unless I’m mistaken, they’re senior guys aren’t taxable here.
While on the subject, is it true that Hankook built a factory but are mainly employing staff who pay tax in Slovakia? I know Philips pulled out; and IBM wound down. All examples of private money that came, and went.
The biggest assets left in the country are the people; and they need to be fostered (trained), given chances to build businesses, develop skills, etc. They will create the revenue. But not if they are overtaxed, cheated and divested.
As I said before, we don’t have to wait for Fidesz; the collapse is already occuring without their help.
Guys help me out here: MSzP / and SzDSz – the Sz’s = Socialist Fidesz = Young Democrat… But MSzP are privatising things, and Fidesz want to subsidise things?