Hungarian PM unshaken as protests fail to take off
17 Sep 2007 20:58:32 GMT Source: Reuters
By Krisztina Than BUDAPEST, Sept 17 (Reuters) - Anti-government protests in Hungary failed to gather significant support on Monday, giving a boost to Socialist Prime Minister Ferenc Gyurcsany's aim of pursuing more economic reforms. Unlike last autumn, when hundreds were injured in Hungary's worst riots since the end of Communism, only some 5,000 people attended a rally marking the anniversary of a leaked speech in which Gyurcsany said he had lied to win reelection in 2006. "We want a change of regime!," Jozsef Tatar, one of the organisers told the rally outside parliament. Some protesters threw bottles at the cars of some government deputies leaving the building and riot police cordoned off the entrance. There were also smaller protests in several rural cities demanding the government's resignation, a year after Gyurcsany said he and his party lied "morning, noon and night" about the country's huge budget deficit to win elections. Gyurcsany's position is strong despite a plunge in his party's popularity ratings after the government imposed large tax hikes and spending cuts last year to cut the budget deficit. The fiscal measures, followed by painful reforms in the health, education and state administration sectors, have won praise from foreign investors holding billions of euros worth of Hungarian assets. This year the deficit will fall to 6.4 percent of gross domestic product, from over 9 percent last year, but economic growth slowed to an 11-year low of 1.2 percent in the second quarter, making Hungary the worst performer in the region. While Gyurcsany has regained credibility with investors by putting Hungary back on the path to euro adoption, the country is deeply polarised under his government. But he shows no signs he will be moved by protests and enjoys the strong backing of his party, which analysts say could give him a free hand to push through more reforms essential to align Hungary's economy with the rest of the EU. On Saturday Gyurcsany told a party meeting he would push for deeper reforms rather than reversing them. Andras Giro-Szasz, director of thinktank Szazadveg Foundation, said Gyurcsany's position was stable for two reasons -- he had no rivals in leading the Socialists, and his party's ire against right-of-centre opposition leader Viktor Orban was much more powerful than any urges to oust the prime minister. Orban and his party regard Gyurcsany and his government as illegitimate, and for a year have been walking out from parliament whenever the prime minister speaks.
