Hungary Prime Minister Gyurcsany Resigns

Hungary’s Prime Minister, Ferenc Gyurcsany, announced this morning (Saturday) his intention to resign as Prime Minister. Gyurcsany informed a congress of the Socialist Party of his decision following a sharp fall in the popularity of his government.

Gyurcsany will now inform the Hungarian Parliament of his decision (probably on Monday), and attempt to initiate a “constructive” no confidence vote, by which means it is hoped that a new candidate for PM will emerge. Early elections are currently thought to be unlikely, although it is not clear at this point how the minority coalition partners will react.

Well, we now have a clear pattern being established following the recent IMF interventions in Iceland, Latvia, Hungary etc – the government collapses under the weight of the measures. Basically, and as I said during the week, what we have unfolding before us in Hungary is a tragedy, since the rigid enforcement of the deficit ceiling without external fiscal injections from the EU, simply means that the economic contraction feeds upon itself.

I hear that I am the obstacle to the co-operation required for changes, for a stable governing majority and the responsible behaviour of the opposition,” he was quoted as saying on Saturday by Reuters news agency. “I hope it is this way, that it is only me that is the obstacle, because if so, then I am eliminating this obstacle now. “I propose that we form a new government under a new prime minister.”

Irrespective of whether or not Gyurcsany was part of the problem rather than part of the solution, and despite the fact that Hungary may benefit from having a new leader, the issue is a much bigger one than the office of Prime Minister.

Amongst other matters, this is the principle “bottleneck”:

The source said talks with parliamentary parties would start next week to pick a new premier as soon as possible to pass much-needed budget measures with a stable majority.

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About Edward Hugh

Edward 'the bonobo is a Catalan economist of British extraction. After being born, brought-up and educated in the United Kingdom, Edward subsequently settled in Barcelona where he has now lived for over 15 years. As a consequence Edward considers himself to be "Catalan by adoption". He has also to some extent been "adopted by Catalonia", since throughout the current economic crisis he has been a constant voice on TV, radio and in the press arguing in favor of the need for some kind of internal devaluation if Spain wants to stay inside the Euro. By inclination he is a macro economist, but his obsession with trying to understand the economic impact of demographic changes has often taken him far from home, off and away from the more tranquil and placid pastures of the dismal science, into the bracken and thicket of demography, anthropology, biology, sociology and systems theory. All of which has lead him to ask himself whether Thomas Wolfe was not in fact right when he asserted that the fact of the matter is "you can never go home again".

10 thoughts on “Hungary Prime Minister Gyurcsany Resigns

  1. I find it strange that he’d resign the day after the EU Summit. Sits in Hungary’s seat at the table and then quits the next day. Doesn’t sound like a way to maximize influence — unless he heard something that really depressed him!

  2. Gyurcsany is requesting a vote of no confidence in Parliament for a second time. I’m not sure he really wants to go just yet.

  3. “Gyurcsany is requesting a vote of no confidence in Parliament for a second time. I’m not sure he really wants to go just yet.”

    Yes, well this is always a possibility isn’t it, that this is a way of bringing the party into line, and getting them to agree to more budget cuts.

    The problem is, that such cuts are only going to accelerate the contraction at this point, and I think the whole IMF strategy needs reviewing.

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  5. One of his main goals was likely to be a step ahead of Fidesz and its supporters who kept hammering the message that Gyurcsany is the root of everything that’s wrong with the country and he must be removed from office. Now Fidesz have announced that they won’t enter negotiations about a new PM but want early elections – something that suggests that they care more about getting back into power than about co-operation for the good of the country.

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