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January 2009 - Crisis in Hungary: Round Two

Political Agenda in January 2009 (Weeks 1-5)

In January 2009, the agenda was determined by two crises. In the beginning of the month, Russia stopped its gas shipments to Europe due to a row with Ukraine; however, Hungary had enough reserves to come through the crisis relatively unscathed. From mid-January, the international financial crisis became dominant news again, after PM Ferenc Gyurcsány conceded that the economy might do worse than even the most pessimistic predictions had suggested.

In the first month of 2009, public attention was again centred on the international economic crisis. After IMF Managing Director Dominique Strauss-Kahn’s visit to Hungary, it turned out that the prospects of the Hungarian economy were worse than expected, consequently the budget needed to be modified. In October, the crisis was seen as an opportunity for the government in spite of its obvious political dangers, but now, the situation seems to be more in line with the Fidesz’s interpretation of reality. The MSZP did not make any serious mistakes, but there is an increasing need for specific measures to back up the party’s messages. These – according to the Prime Minister – are to be announced in early February; their reception may have a significant impact on the outcome of the 2010 elections. The Fidesz has gained considerable experience in attacking the government’s crisis management and Ferenc Gyurcsány’s person simultaneously. The opposition party has started its preparations for the European elections; its strategy in spring is likely to serve one purpose: getting out the vote. The so-called gas crisis also had a large share of the January agenda: as a result of a conflict between Russia and Ukraine, the former stopped its gas shipments to Europe. Due to its huge supplies, Hungary barely felt the effects of the crisis; paradoxically, this entails that the government is unlikely to be rewarded for its confident handling of the situation. Another event worth mentioning is that Miskolc Police Superintendent Albert Pásztor was relieved of his position after he made controversial comments about gypsies (31. 01.), but the great pressure from local politics and society soon saw him reinstated (01. 02.). Ferenc Gyurcsány revisited the idea of a smaller parliament, proposing to reduce the number of representatives from 386 to 199, and change the current mixed electoral system to a  proportional one (01. 02.). Also, a smog alert was ordered in Budapest for this first time in the capital’s history (11. 01.).

In January, the ratio of government topics continued its decrease and was, for the first time in eight months, surpassed by the ratio of the opposition’s topics (Graph 1). It is telling to compare the current numbers to those of October, the month when the first wave of the financial crisis arrived in Hungary. The government usually has better results in the beginning of the year, and the same can be said for Hungarian politics as a whole: the ratio of topics favourable for one side or the other did not even reach 50 percent. Individual parties were somewhat more active than in December, especially the MSZP (Graph 2).

The economic crisis returned to the forefront of attention in mid-January. After his meeting with IMF leader Dominique Strauss-Kahn, Ferenc Gyurcsány conceded that the economy’s prospects were even worse than expected (13. 01.). As a greater recession was predicted, the budget needed to be modified in order to prevent a huge increase of the deficit. This new state of affairs left the government with a serious challenge on both the economic and the political level. So far, no concrete measures have been taken, so talk was more about intentions and plans. Like in October, the MSZP endeavoured to avert responsibility for the difficulties, and for the potential restrictions that may follow. In connection with that, the socialists had two disagreements with the Fidesz. Firstly, they treated the worsening prospects as an external circumstance that could not be foreseen. On the other hand, the Fidesz emphasized that no new information turned up concerning the crisis, thus bad planning was a result of the government’s incompetence alone. Secondly, the opposition claimed that the budget failed, and demanded that a new proposal be submitted by the cabinet. The MSZP rejected this possibility, which would have led to a risky procedure in the parliament and a grave loss of prestige. Other than that, the government came up with the same messages as before. Prime Minister Ferenc Gyurcsány called for an extraordinary session of the parliament (15. 01.), to which the MSZP later invited the public dignitaries and the leaders of the most important social and economic organizations as well (19. 01.). The meeting, similar to the national summit in October, followed the usual scenario (29. 01.). This month, however, the Prime Minister spoke about more than just reforms: he urged the participants to rethink the economic model as a whole, and to create – among others – a new national strategy.

The Fidesz had three distinct messages in January. The opposition party continued to claim that Ferenc Gyurcsány had lost too much credibility to lead the country, thus real crisis management could only come after early elections. They were able to exploit the fact that in a fast-changing economic environment, the policies of the government inevitably need some correction from time to time, which may easily be interpreted as hesitation. The Fidesz went as far as to propose the dissolution of the parliament, effective 8th March (27. 01.). The MSZP and the SZDSZ voted against the immediate discussion of this proposal, but nevertheless it managed to divert some attention from the parliament’s extraordinary session on the 29th. Another stream of messages focused on the cabinet’s alleged squandering of money, which, in the midst of a crisis, was deemed a proof of its insensitivity by the opposition party. They brought up issues – such as the Ministry of Finance’s purchase of luxury cars for HUF 22 million (14. 01.) – which had little impact on the “bigger picture”, but could easily be understood by the average voter. Much more importantly, the Fidesz has started its preparations for the European elections. Chairman Viktor Orbán claimed that 2009 could bring about the opportunity for change, but only if the Right, and then the whole nation joined forces. He emphasized that the European elections would be the first step in this new direction. It therefore seems that the opposition intends to increase the stakes of an otherwise moderately significant event in the same way as it did – with great success – before the referendum in March 2008. It came as no surprise when the winner of the by-election in Budapest’s ninth district – a Fidesz politician – declared that his victory marked the beginning of the year of change (26. 01.).

The gas crisis, the result of a row between Russia and Ukraine, was the leading issue in the first two weeks of January, but it also remained on the agenda later on. Gas shipments were reduced on the 2nd, stopped altogether on the 6th, and resumed only on the 20th. The man in charge of the crisis was Csaba Molnár, appointed Minister of Energy a month ago. He had two tasks: to inform and to reassure people. The government claimed that, thanks to the storage tanks built in 2006, Hungary was better prepared for gas shortages than its neighbours, and if restrictions needed to be placed on consumption, the population would be the last to be affected. In the end, only a few factories had to switch to alternative fuels, and as the weather improved, there was even some gas left to export. Throughout the three weeks of the crisis, the cabinet stayed in control of the events, but precisely because people did not really feel the shortage of gas, no political reward is likely for that, in spite of the issue’s strong presence on the agenda. As the crisis was caused by external factors, and the cabinet made no mistakes, the opposition tried to appear constructive instead of criticizing the MSZP. Fidesz politician Ferenc Ódor, chairman of the National Alliance of County Governments (Megyei Önkormányzatok Országos Szövetsége) proposed a three-day holiday in municipal schools to save gas (08. 01.), while SZDSZ Chairman Gábor Fodor called for an “environmental revolution” (08. 01.). After the crisis, Ferenc Gyurcsány too began to look for an alternative to Russian gas: on his trip to the Middle East, he enquired about liquid gas (21-22. 01.), and he gave his full backing to the Nabucco project. An international conference on the gas pipeline was held in Budapest (27. 01.).

The January list of politicians who have appeared on the media’s agenda reveals a fundamental difference between the division of labour within the MSZP and the Fidesz (Graph 3). In the largest opposition party, Viktor Orbán speaks rarely and only on important occasions, while several other politicians are in charge of the daily routine. In the socialist party, on the other hand, Ferenc Gyurcsány deals with almost all relevant issues personally. This strengthens his position, but leaves the MSZP with fewer options. The performance of Csaba Molnár this month is the exception that proves the rule: the minister came to the limelight in connection with the mostly apolitical gas crisis. Overall, the Prime Minister had a rather good month, is spite of the winter break (Graph 4). For Viktor Orbán, there have not been any trends or outstanding values for a long time: the leader of the opposition usually has few appearances, and is only active in campaigns.