The decision came after Hungarian Prime Minister Ferenc Gyurcsany said this weekend he had dismissed the reformist Health minister, underscoring differences within the cabinet over the most dramatic austerity measures introduced here since the democratic changes began, nearly two decades ago.
The minister wants to end the outdated state-run only health care system, by introducing a multi-insurance system. That policy is part of reforms meant to reduce Hungary’s budget deficit, which is the highest within the European Union.
But the Socialists seem increasingly reluctant to carry out aspects of that plan following a recent referendum in which voters overwhelmingly rejected payments for doctors and hospital visits as well as tuition fees. In addition, opinion polls suggest that every second voter wants prime minister Gyurcsany to resign, and that his Socialist Party would dramatically lose elections if they were held now.
Free Democrats leader Janos Koka accused the Socialists of walking away from painful but necessary reforms, and said his party’s executive committee had therefore unanimously decided to end the cooperation. The Free Democrats, "will recall all their ministers and state secretaries by April 30 because Socialist Prime Minister Gyurcsany terminated the coalition reform agreement," he told reporters. He said his party "no longer wants to undertake a coalition role in the present government."
STILL HOPE?
Perhaps against all odds, Socialist Spokesman Istvan Nyako has not given up hope. He said in a first reaction that the prime minister would still try to strike a deal with the Free Democrats on Tuesday, April 1.
"The Socialists support Prime Minister Gyurcsany" he said, playing down reports of mounting opposition against him within the party. "The party seeks calm and moderate reforms. Negotiations will continue between the Socialists and their liberal coalition partner."
It was not clear if and when early elections would be called. Gyurcsany has not ruled out continuing as a one party government. Ironically his Socialists are the successors of the Communist party, which was the only ruling force for decades, when dissidents, including Christians, were persecuted. The right-wing opposition has already rejected such a possibility.
Analysts say that with 190 seats in parliament, the Socialists could limp on until general elections are held in 2010. But they warn it is highly unlikely that further necessary reforms will be introduced.
Hungary, where Christian news agency BosNewsLife has its headquarters, was long seen as a leader of democratic and economic reforms in the region, but in recent years faced competition from neighboring states introducing tax incentives to attract foreign investments. Hungary, a predominantly Catholic country of 10 million people, joined the European Union in 2004.
