Opposition protests after Hungary's PM wins vote

Ferenc Gyurcsany

BUDAPEST - Some 80,000 opposition supporters demonstrated outside Hungary's parliament today to demand Prime Minister Ferenc Gyurcsany quit, just hours after he won a vote of confidence from lawmakers.

Gyurcsany, who secured the votes of 207 MPs with 165 against, had told parliament he would not bow to opposition "blackmail" and vowed to stick to his tough economic programme.

Protesters from the opposition Fidesz party, many waving Hungarian flags, rallied in front of the neo-gothic parliament to the sound folk music and the national anthem, to demand he resign for lying about the economy to win April's election.

By 9pm (8am Sat NZT) the crowd had shrunk to a few thousand people, dominated by nationalists. The mood was peaceful.

Analysts said that despite rallies planned until the October 23 anniversary of Hungary's failed uprising against Soviet rule, the opposition would not be able to oust the government.

Gyurcsany told parliament he would carry out plans to slash Hungary's budget deficit, the biggest in the European Union, by 2009, reducing the risk of a market crisis and bringing the country closer to euro membership.

"I call on parliament not to give in to threats and street blackmail organised by the opposition," he said in a speech before the confidence vote, the first since democracy was restored in Hungary in 1990 after decades of communist rule.

Gyurcsany once again apologised for the tone of his leaked comments, on a profanity-ridden tape, to a meeting with Socialist legislators in May, and for not being brave enough to tell the truth in the election campaign.

"We must stick to this programme ... reforms are needed and development is needed for this country," he told parliament.

Gyurcsany and his Socialist-led government campaigned on tax cuts but, after retaining power, introduced big tax rises to reduce a budget deficit which has ballooned to 10.1 per cent of gross domestic product (GDP) under Socialist rule since 2002.

The budget deficit target for 2006 was 4.7 per cent of GDP. Despite the overshoots under the Socialists, investors believe Gyurcsany offers the only chance of tackling overspending.

The forint rallied to 271.70 against the euro from 273.70 prior to the vote.

"Gyurcsany's position has strengthened as (opposition leader Viktor) Orban has gone to the limits of constitutional means," said Zoltan Lakner of Vision Consulting who said only elections in 2010 would deliver a verdict on the government.

Fidesz said the prime minister had not allowed people to vote in April based on the facts and this was shown by the tape, leaked on Sept. 17, in which he said "we lied in the morning, we lied in the evening" about the economy.

That tape and tax rises and subsidy cuts have caused almost three weeks of protests outside parliament.

"You lied in the election campaign, you based your election campaign on lies," Fidesz parliament group leader Tibor Navracsics said.

At the rally, Orban urged people to sign a charter to restore moral order in Hungary and to come to parliament every day to protest. Protesters said they would not give up.

"I think Gyurcsany is wrong in expecting the people to give up, we have to stick together," said Miklos Nemeth, aged 71.

- REUTERS