Left Government’s Failed Economic Policy

At 2:00 p.m. on September 28, I took off from Line 2 at Kossuth ter station and found the Godic style Congress building in Hungary.

Even though it was daytime, millions of Hungarians from students to seniors sat down on the lawns in front of Congress. Armed policemen patrolled, surrounded by barricades. The demonstrations starting from September 17 was the recent largest anti-government protests since the collapse of the communist government in 1989.

Many pickets and flags hung on the barricades called for the resignation of the incumbent Prime Minister Gyurcsany, who was leading the main center-left party and responsible for its failed economic policies.

Hungary has been embroiled in a crisis since May when his comments to a Socialist Party meeting leaked on a radio show on September 17, in which he said, "We have done nothing in the past four years. We lied in the morning, we lied in the evening."

His comments have fuelled people’s anger that is increasingly frustrated at the government’s failed economic policies.

Unemployment rates jumped to 7.5 percent from five percent in 2004 when the prime minister swept to power with his welfare policies. Hungary’s fiscal deficit is now expected to rise to 10.1 percent of the total GDP this year. It is three times higher than EU deficit ceiling, serving as an obstacle of the euro introduction in 2011.

Against this backdrop, he had to shift to tightening fiscal policy including wage cuts, an increase of 30 percent in public utilities, value added taxes, and abolition of free high education and medical services. All policies were part of attempts to reduce fiscal deficits up to three percent of GDP by 2009.

Yanosi (34), a waitress, complained, “Citizens in Budapest cannot even afford to buy decent meals at restaurants. The minister who has named himself as the public’s spokesman has been lying that the economy is growing.”

Musaro (21) who was lunching on a kebab sandwich at a square was glad to see me when I revealed my identification as a reporter. “Most of the local media cannot broadcast true voices of the public due to oppression of the government. Only foreign media can spread the word of Hungarians.” He held up the picket, saying, “Thank you, CNN.”

People started to gather at the Kossuth ter station around 5:00 p.m. The number of people gathering there was starting to balloon. At around 7:00 p.m. the square was crowed with thousands of people.

Citizens started to light the lights and chant the resignation of the prime minister in a tune with loudspeakers. But there were no headbands or uniforms that were usually found in protests. All Hungarians participated in the protest from the young hippy with larger earrings to the elderly with gray hair. Many young people in their 20s and 30s showed up, reflecting the high unemployment rates, and in turn it sometimes turned into aggressive violence. But the scale of the demonstration reduced in half and violence was hardly found compared to the September 20 protest. “With the October 1 election approaching, the police was beefed up and long-lasting demonstration was not accustomed to them.” One citizen explained the different scenes.

“It is first time to see such a crowd at this square. I brought the children to learn the real society and world,” said one woman holding the hands of her two children.

Some citizens were voicing their concerns that such violent protest would damage tourism, the main livelihoods of people in Budapest. Song In-sun (48) who has been running a hotel for seven years in Belgrade, Budapest, said, “Since the liberation from the Soviet Union, citizens have protested peacefully. Just holding hands together and surrounding Congress. But this time is different as violence grows everyday. We can even witness burning cars. So I recommend Korean tourists not to come near Congress.”

The very day’s public sentiment translated into the ruling party’s loss in the election. Even in local elections held on October 1, the center-right Fidesz, Alliance of Young Democrats, won a landslide victory, sweeping in 18 states out of 19 and 15 cities out of 23.

bell@donga.com