as the new prime minister. He will replace Peter Medgyessy, who resigned Wednesday, August 25, pre-empting an attempt by his party to oust him.
The new prime minister, if confirmed by the parliament early next month, will bring a new generation into Hungary’s politics. Gyurcsany, who was not even in contention for the job a week ago, emerged as the clear winner at Wednesday’s extraordinary Socialist Party congress, where he beat his main rival, Peter Kiss, for the top job.
Hungarians hope the new appointment will end their country’s worst political crisis since it abandoned Communism in 1989 and embraced a multi party democracy and religious freedom. The row began last week when Medgyessy fired the economy minister of the Socialists’ liberal coalition partner, the Alliance of Free Democrats, as part of a major government reshuffle.
ANGER
The firing angered not only the Free Democrats, but Prime Minister Medgyessy’s own party as well, which dumped him within hours of the announcement.
In an interview with Hungarian state television, Medgyessy said he felt betrayed by his fellow Socialists. "When I was invited to the Socialist Party Congress to be their prime minister, we made a kind of agreement that people make when they get married," a visibly shaken Medgyessy said.
"The party made a promise to stay behind me in good and in bad times. Unfortunately…the Socialists only stayed with me in the good times and dumped me when the situation started to get difficult," he added.
UNPOPULAR
His successor, Gyurcsany, will inherit an unpopular government and a growing budget deficit, which analysts say may hamper Hungary’s efforts to adopt the European Union common currency, the Euro.
The 43-year-old prime minister, who became one of Hungary’s richest men, buying state assets during the early years of privatization, is widely seen as representing a philosophical break from the old-guard politicians of the Communist era, embracing both a liberal business outlook and support for social justice.
However his critics say he is also rich in rhetoric while lacking vision, and Hungary’s Western financial institutions are expected to closely watch if the "social solidarity" preached by the Socialists will translate into more social spending and further strain the central budget.
DIFFICULT
Chairman Ivan Peto of the Free Democrats, who want fewer rather than more taxes, made clear that while his party accepts Gyurcsany, Hungary will have to brace for more difficult coalition talks. "We will continue the consultations, " he said. "However we do not want a constitutional crisis and will respect the decision of the (Hungarian) president", who will have to confirm the nomination, Peto explained.
But gaining public support, said analyst Tamas Kiss, of the energy news service Platt’s, will be more difficult, especially at a time of rising prices and an uncertain economic outlook. "Household energy prices are increasing. The government is selling and privatizing MOL, the national oil and gas company as much as it can," he told BosNewsLife before the announcement of a new prime minister. "People are really concerned," Kiss added.
Hungary is not alone among the former Communist countries of central Europe in going through political upheavals. Since May, the prime ministers of Poland and the Czech Republic have also been forced out of office after losing popular support. Some commentators have said the developments were expected in these young democracies, which only recently joined the EU.
