The main objective of representatives gathered at the minority governing Socialist party’s weekend conference is to get the necessary party authorisation for further economic crisis management measures, Nepszabadsag daily said on Friday.
The party’s various platforms have failed to arrive at a joint position on what they are likely to find as acceptable in terms of crisis management, said the paper.
The government has little choice but to introduce further spending cuts, not least because economic growth is expected to slow down further than the government’s initial projections, with a knock-on effect on revenues.
Gyurcsany will propose concrete steps for crisis management and measures that go beyond the current package but differ from the proposals of the Reform Alliance, a panel of economic and business leaders, the paper said.
Gyurcsany also plans to make a gesture towards employers’ organisations and the Reform Alliance by opening up the issue of structural reforms in health care, education and state administration.
The cabinet is willing to accept the direction of reform proposed by the Reform Alliance and further cut state spending. However, contrary to the proposed 550 billion forints, the cut can only be as much as that authorised by the congress and the party group, said the paper. This debate is expected to be a source of tension, said Nepszabadsag.
Only five of the party’s seven platforms signed a joint position paper in advance of the conference on crisis management measures, but this statement calls on the leadership to show flexibility and a willingness to compromise.
Ildiko Lendvai, the party’s parliamentary group leader, told public television M1 that the conference would decide what kind of authority to give the government in taking further measures to handle the crisis. She said the government would have to take more radical measures to cut spending and make structural reforms.
Peter Kiss, the head of the prime minister’s office, speaking on the same programme, underlined the importance of the extent to which the party would give the government a mandate for reform. While he conceded that the conference would be marked by strenuous debates, he said he expected the conference overall to be “balanced.”
PM’s position as party leader seen as safe
Gyurcsany is the only candidate for the post of party chair and his re-election on Saturday is almost certain. However, the vote is expected to attract some protest votes. Even though there is no other candidate, Gyurcsany is not likely to receive full backing. Analysts say that if Gyurcsany receives more than 70 percent support, then this will solidify his position.
They say that once Gyurcsany recaptures the party leadership, one possibility is that he could make an orderly arrangement for his succession as prime minister. But whoever this turns out to be they must have the support of the small liberal party, the Free Democrats, which holds the votes needed to confirm his passage through parliament.
Ledvai told the television programme that the decision about who to choose as the party’s prime ministerial candidate would have to wait until later. Asked about MTI’s interview with Socialist deputy chairman Imre Szekeres in which he said the issue of who should lead the party into the next election should be decided on the basis of who is likely to command the widest support, she said the decision concerning the 2010 election should not be addressed now.
Although there is huge pressure on Gyurcsany to give up his post as head of government it is unlikely that he will formally resign, since this would also end the government’s mandate.
