Fini ally warns Berlusconi as confidence votes loom

(Reuters) – Italy’s Gianfranco Fini, the increasingly dissenting co-founder of Prime Minister Silvio Berlusconi’s party, has enough support to bring the government down, a Fini ally warned Saturday.

Fini has publicly challenged Berlusconi’s policies and leadership style in recent months, fuelling speculation he might lead a faction against the embattled premier.

Comments published Saturday by Fini associate Italo Bocchino will add pressure on Berlusconi, who faces two confidence votes in parliament — the first is expected on July 15 — on an unpopular 25-billion euros austerity budget.

Berlusconi has said that he would resign, as required by the constitution, if he lost the votes.

Asked by independent news outlet CNR Media how many followers could Fini count on, Bocchino said in a video interview: “At least one more than the number needed to keep the ruling coalition afloat.”

The Italian media were quick to pick up on signs of a widening rift between Fini and Berlusconi. Bocchino later said his words, which were posted on CNR Media website (www.cnrmedia.com), were misinterpreted.

He said in a statement Fini’s backers were “decisive” to keep the government going and would vote with the ruling coalition “until the last day of the legislature.”

Ever since Fini and Berlusconi publicly clashed at a party congress in April, there has been much speculation about whether dissenters within Berlusconi’s People of Freedom party had the numbers to deprive him of his parliamentary majority.

Il Giornale newspaper, which is owned by the Berlusconi family, calculated this week that without Fini and his allies, the government could count on 316 votes in the lower house of parliament — a majority of just one vote.

In the Senate, Il Giornale said that the center right without Fini and his allies had a five-vote majority at 162, but that did not include seven life senators, all of whom are former heads of state or otherwise distinguished public figures.

Fini, who is speaker of the lower house, and Berlusconi have exchanged regular barbs through the media, fuelling speculation that their enmity could destroy the coalition and force the appointment of a new government or snap elections.

The rivalry has leaked into the battle Berlusconi faces to push through parliament the austerity package designed to shore up Italy’s public finances.

The package, including spending freezes and pay cuts in the public sector, faces opposition from groups ranging from the unions to cash-strapped regional governments, with critics saying it bleeds workers and spares the rich.

Even diplomats have called a strike against the measures.

Berlusconi’s approval rating fell nine points to 41 percent over the past six weeks, according to a survey in Corriere della Sera daily this week, and his government appears more vulnerable than it has been since it took office in May 2008.

Two ministers have resigned in as many months over corruption accusations, while protests have been growing over a draft bill that would limit the use of wiretaps by police and punish newspapers that print transcript leaks.

(Editing by Matthew Jones)

No consensus in CPI(M) Polit Bureau on political review draft

New Delhi, Jun 6 (PTI) The CPI(M) Polit Bureau today appeared to have failed to reach a consensus on a draft of their review on political decisions taken after 2007 Party Congress and decided to meet again next month to finalise it. The two-day meeting of the top party leaders, which ended here today, discussed the outline of the draft resolution which will be presented at the extended meeting of the Central Committee in Vijayawada scheduled in August.

“No, no. We have not reached on a consensus.

That is why there is one more meeting. There are differences on the implementation of political line adopted in the last Party Congress,” a senior CPI(M) leader said when asked about the deliberations in the two-day meeting.

The Polit Bureau will meet again on July three and four to finalise the draft which will be presented before the Central Committee which will discuss it for three days from July 21. The extended Central Committee meeting is being held as CPI(M) decided to postpone the Party Congress, which was to be held this year, due to upcoming assembly polls in West Bengal.

Sources said there were intense discussions on the decisions taken by the party leadership with regard to aligning with non-BJP, non-Congress parties like Samajwadi Party, BSP and others during the past three years. There were also discussions on the strategy adopted during cut motions and its fall out, they said.

However, the leaders were unanimous in backing the decision to withdraw support to UPA government on Indo-US nuclear deal in 2008. “There were no opposition to the decision to withdraw support to UPA either in Polit Bureau or Central Committee.

But there were discussions on other issues on which decisions were taken after the Party Congress. That was reviewed.

We discussed these problems,” senior Polit Bureau member M K Pandhe told reporters here. Another Polit Bureau member Sitaram Yechury said there was one round of discussions on the document to be presented in Vijayawada.

“The Polit Bureau discussed the outline of a draft document for the extended meeting of the Central Committee to be held in August. The PB will meet next month to finalise the draft to be presented to the Central Committee,” he said.

On the Bengal civic polls, party leaders said a preliminary report was presented in the meeting. “The West Bengal state committee will conduct a review of the election on the basis of which necessary political and organisational steps can be taken to win back the confidence of those sections of the people which have moved away from the party,” Yechury said.

NEWSMAKER – China’s Wen faces diplomatic test in S.Korea

Chinese Premier Wen Jiabao is on a delicate diplomatic mission this weekend as he attends a trilateral meeting expected to be dominated by North Korea and tries to shore up his influence at home.

The trilateral talks will be a tricky task. International pressure is growing for China to acknowledge, and then act upon, evidence that a North Korean torpedo sank the South Korean navy corvette Cheonan in March.

In overseas summits, Wen has to operate within the constraints of China’s collective leadership, without the spontaneity that has allowed him to build a reputation as a caring man of the people.

Domestically, a deft deal would shore up support for Wen, who faces declining power over the next two years. His successor will be anointed at the next Communist Party congress in 2012.

“Wen would increase his own standing with the leadership if he negotiated a successful outcome,” said Russell Moses, a Beijing-based analyst of Chinese affairs.

“It would certainly add to his credibility as a problem-solver within the leadership.”

Wen bows out in early 2013, after a decade at the helm of China’s one-party government where the 67-year-old premier has espoused policies to spread wealth and reduce inequalities.

But it won’t be easy to set the agenda this weekend, given China’s collective decision-making.

“He will need consensus before departure, and cannot just change policies,” said Bo Zhiyue, a researcher at National University of Singapore’s East Asian Institute.

“He has very little room to manoeuvre … That’s a constraint of the collective leadership system.”

During climate change negotiations in Copenhagen last year, Wen raised hackles when he retreated to a hotel room and sent a junior official to negotiate with other world leaders.

Critics accused China of deliberately obstructing a deal, but many analysts felt Wen’s actions reflected his lack of autonomy or power to negotiate for his country. Wen told his annual news conference in March that China was on the invitation list but was never formally notified.

GRANDPA WEN

At home, Wen uses public appearances to his advantage despite a relatively weak power base. He is more approachable and more personable than his counterparts in the Party’s nine-man Politburo Standing Committee, China’s top political body.

“Because the end of his term is so visible, in many ways Wen is considered a lame-duck premier,” Bo said. “He’s fully aware of his limited time in office and wants to leave some legacy.”

He recently generated controversy within China for penning a nostalgic essay commemorating Hu Yaobang, the reformist Party chief whose death on April 15, 1989, sparked pro-democracy protests by students and workers centred on Tiananmen Square.

Some interpreted the essay as an attempt to regain favour with the Communist Youth League, the power base of incumbent Party chief and President Hu Jintao.

Wen was noticeably absent during the opening of the World Expo in Shanghai in May, visiting instead displaced Tibetan victims of a strong earthquake in Yushu, Qinghai province.

After the devastating Sichuan quake in 2008, Wen’s visits to the disaster zone kept the rescue in the public spotlight and spurred the army and bureaucracy to respond to pressing problems.

The burst of popularity for “Grandpa Wen” may also have aroused envy and adoring state media coverage of Wen was soon replaced by images of the more sedate President Hu.

Narrowing the urban-rural income gap is a policy goal for Wen. He abolished a grains tax dating back two millenia, promoted rural industry and sketched out a broad social welfare net.

Other initiatives to coax growth away from cheap exports, big state projects and polluting factories have met resistance.

A geologist by training, Wen spent 14 years in poor, arid Gansu province, rising through the Party as a loyal and ever-prepared aide.

His reputation for unassuming service helped him survive 1989, when his boss, then party chief Zhao Ziyang, was purged and put under house arrest for opposing the military crackdown on the pro-democracy protests. Zhao died in 2005.

“My heart will always belong to my noble hopes, and for this I would have no regrets even if I died nine times over,” Wen said in March, quoting Qu Yuan (340 BC-278 BC), the poet-statesman who threw himself into a river in present-day Hunan province to protest against misrule by the king of Chu.

Wen’s immediate predecessor as premier, Zhu Rongji, seemed to relish lambasting officials, baiting reporters and making bold policy gambles, only some of which were successful.

Wen by contrast casts himself as a humble servant of the people, smiling, conciliatory, often tearful in the face of their suffering and with a relentless capacity for new jobs.

“Zhu Rongji had his iron fist and Wen Jiabao has had his tears, but in the end both men have found neither way works magic,” Zheng Yongnian, head of the National University of Singapore’s East Asian Institute, told Reuters.

In private, officials sometimes scoff at Wen’s shows of sentimentality, seen as unbecoming from a state boss.

“You can be popular by being soft. But eventually all policies have to be enforced by bureaucrats and special interests, and then crying doesn’t work,” said Zheng.

(Editing by Benjamin Kang Lim and Paul Tait)

Italy’s Fini defiant after clash with Berlusconi

ROME, April 25 (Reuters) – Italian right-wing leader Gianfranco Fini showed no regrets on Sunday after clashing with ally and Prime Minister Silvio Berlusconi, and said he would only respect party decisions that have been properly discussed.

Bonds

Fini and Berlusconi, joint founders of the ruling People of Freedom party, publicly crossed swords at a party congress on Thursday, when Fini accused his boss of stifling internal debate and giving too much power to the pro-autonomy Northern League.

Speaking in a television interview on Sunday, Fini said he was proud of having “torn the veil of hypocrisy” that gave a false impression of blanket internal party agreement.

Fini said he had no intention of heeding Berlusconi’s call for him to resign as speaker of the Chamber of Deputies, and he and his followers would “only respect party decisions that are discussed and motivated”.

The half-hour interview was Fini’s first public appearance since the clash which has dominated Italian media for the last three days and fuelled speculation about how long the centre-right government can last.

Berlusconi’s leadership “cannot and must not cancel out … the possibility of different opinions, sometimes of dissent,” he said.

Fini, viewed as a possible successor to the 73-year-old Berlusconi as prime minister, mixed his defiance with pledges of loyalty to the government, while rejecting the idea of early elections and denying he had any plans to form a separate party.

“Even talking about early elections is irresponsible,” he said, saying the fall of the government would expose Italy to “an enormous risk of ending up like Greece,” in reference to the Mediterranean country’s debt crisis.

“I have no intention of forming another party. I plan to continue discussing inside my own party about some political problems,” Fini said. (Editing by Janet Lawrence)

MIC chief to apologise to Dr Mahathir over ‘slipper garland’ insult

Kuala Lumpur, Sep 18 (ANI): Malaysian Indian Congress president S. Samy Vellu has said that he will personally apologise to former prime minister Dr Mahathir Mohamad over the ‘slipper garland’ insult by a MIC member during the recent party congress.

He said he would seek an appointment with Dr Mahathir to tender his apology over the incident.

“I will meet him personally to explain the whole episode and extend my apology,” Samy Vellu said in a statement on Thursday.

The MIC chief said he and the MIC regretted the incident. “I have always had the highest respect for Tun Dr Mahathir. He is a great leader and a statesman.”

He said Dr Mahathir had brought tremendous development to the country and had united the people. “He will always be respected by us and all Malaysians,” The Star quoted Vellu, as saying.

Meanwhile, Dr Mahathir said he did not feel anything about the incident and added: “Nothing would have happened to me.”

Instead, he said he would have felt angry and saddened if Umno members had made such an insult.

“This is not the first time I have been insulted. People might have forgotten how Umno leaders had insulted me. Nazri (Minister in the Prime Minister’s Department Nazri Abdul Aziz) and the previous mentri besar of Kedah wanted me expelled from Umno.

However, then no one gave any reaction. No one dared to say anything,” he said. (ANI)

CPI (M) charts out strategy for the forthcoming assembly elections

New Delhi, Sep 5 (ANI): The Communist Party of India-Marxist (CPI-M) politburo on Saturday discussed possible strategies for the forthcoming assembly elections in three states at the two-day meet being held in the national capital.

Senior leader and politburo member of CPI-M Sitaram Yechury after the first day of the meet said: “The Politburo meeting began this morning. We are discussing the current political situation in the country. We are discussing the forthcoming elections for the state assemblies that are going to be held in Maharashtra, Haryana and Arunachal Pradesh.”

“We will also be discussing on how to conduct a rectification campaign which was a decision taken by our last party congress in which we said we will take up the matter after the general elections,” Yechuri added.

Earlier, the Election Commission had declared October 13 as the date to conduct polls for the legislative assemblies of Maharashtra, Haryana and Arunachal Pradesh.

It may be recalled that the party had managed just four seats in Kerala and nine in West Bengal, the two main hubs of the party, during the 2009 Lok Sabha Polls, following which the party has decided to prepare a ‘rectification document’ after its poor performance in the 2009 elections to the Lok Sabha.

The politburo also discussed the current political situation in the country. (ANI)

Leaders across political spectrum condole Andhra CM’s tragic death

New Delhi/Hyderabad, Sep.3 (ANI): The tragic death of Andhara Pradesh Chief Minister Y.S.Rajasekhara Reddy and others on Thursday left the leaders of all political parties of the country shocked and grief-stricken.

Political leaders beyond party lines on Thursday mourned the death of Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy, hailing him as a “man of determination, charisma and conviction”.

A pall of gloom has descended on Congress party offices headquarters where its flag is flying half-mast. At the head office of main opposition Bharatiya Janata Party (BJP) also the flag is flying half-mast here. It is a tremendous loss. He was a dynamic chief minister. A towering and successful leader of the state and the Congress party,” Congress party spokesperson Jayanthi Natarajan said.

“He was very practical. He always wanted to achieve specific goals. He was a man on the move. I am sure there is much more he could have achieved,” said Natarajan.

Senior BJP leader L.K. Advani, in his condolence message, said: “I am deeply saddened to know that the Chief Minister of Andhra Pradesh, Y.S. Rajasekhara Reddy, has died in a tragic helicopter accident. I condole his untimely and tragic death.”

“The people of Andhra Pradesh and the country at large have lost a very able and popular leader of (the) masses,” Advani added.

Communist Party of India-Marxist (CPI-M) general secretary Prakash Karat said: “The death of Rajasekhara Reddy in a tragic helicopter accident has shocked everyone. His untimely death is a big loss for Andhra Pradesh and the Congress.”

Also condoling Reddy’s death was BJP president Rajnath Singh who said: “The sudden death of YSR is an irreparable loss. He was the son of the soil and has always worked for the poor. He is known for good governance.”

“I am deeply saddened by his sudden death. I extend my heartfelt sympathy to his family,” he added.

Telugu Desam Party chief and YSR’s main political rival Chandrababu Naidu also told reporters in Hyderabad that beyond political differences, he had great friendship with the deceased chief minister.

“We were very good friends. He was a man of conviction and charisma. I am shocked,” he said.

Chiranjeevi, President of Praja Rajyam Party (PRP), said “Today everyone is in morning because we have lost a great leader, who was always helpful.”

Reddy’s Bell 430 chopper went missing Wednesday morning at about 9.35 and could only be located on Thursday morning following a night long search operation by different units of security personnel including Army’s Commandos, Air Force’s Sukhoi-30, and 5,000 CRPF personnel.

Prime Minister Office confirmed the death of Andhra Pradesh Chief Minister Y.S. Rajshekhera Reddy and four others after their chopper crash-landed about 40 nautical miles east of the Kurnool mountainous area.

Reddy’s chopper wreckage was discovered atop a hill about 40 nautical miles from Andhra Pradesh’s Kurnoool district.

Along with YSR, four others-Dr P Subramanium, the special secretary to the Chief Minister; ASC Wesley, Chief Security Officer and two pilots Group Captain SK Bhatia and Captain MS Reddy-died in the crash. (ANI)

BJP counters Jaswant charge on cash-for-vote scam, Kandahar

New Delhi, Aug 28(ANI): Bharatiya Janata Party (BJP) spokesperson Prakash Javadekar on Friday denied the charges that were levied by expelled party leader Jaswant Singh, who sharpened his attack on the party by asserting that senior party leader L K Advani was “at the centre” of the cash-for-votes scam drama enacted in the Lok Sabha last year.

Addressing a press conference in the national capital, Javadekar strongly denied all the charges and said that all the blame were baseless and attack on Advani is uncalled for.

“We totally deny the charges levied by one magazine (Outlook) and Jaswant Singh regarding the cash-for-votes scam. It was orchestrated by the ruling party (Congress) and the proof of this is with the channel which did the sting operation, it is not a sting operation done by political party, but done by one news channel in which our three MPs (Ashok Argal, Faggan Singh Kulaste and Mahavir Bhagora), who were offered money have cooperated with that channel and they have all the evidence,” Javadekar said.

“Let me first totally refuse that it was a BJP orchestrated plan. No way. It was the ruling party organized drive, which was tried to be caught live by one channel in which we cooperated for unearthing the truth,” he added.

Javadekar further said that the Kandahar hijack issue, which took place in December 1999, is long discussed and over, and now there was no point in unnecessarily raising the issue.

“The Kandahar episode is a 11 year old episode in which 160 lives were in danger, the Government of the day (1999), took everybody including Congress and other major parties into confidence and went ahead with what was best and advised by security experts,” Javadekar said.

“So, the decision was taken at a Government level. The chapter is over, so some people raising unnecessary controversy over the issue 11 years after is needless. It’s not right, and attack on Advani is uncalled for,” he added. (ANI)

Albanian opposition rejects election results, calls for new vote

Albanian opposition rejects election results, calls for new vote Tirana – The leader of Albania’s opposition Socialist Party on Wednesday rejected the results of the June 28 parliamentary elections as “fraud,” and announced plans to call new elections.

The Albanian Electoral Commission announced earlier that the Socialist Party led by Tirana mayor Edi Rama won 66 seats in the 140- seat parliament, behind the 70 seats won by the Democrats led by Prime Minister Sali Berisha.

The remaining 4 seats went to Socialist splinter party LSI, which has said it will form a government with Berisha.

“These results are unacceptable for the Socialists,” Rama said, adding that the party will give its final position on the elections at an extraordinary party congress on August 22.

Albania was under intense pressure to organize fraud-free elections, which it has been unable to do since the fall of communist regime in 1990.

Since the June elections, the Socialists have accused Berisha’s Democrats of interfering with the results, which the Berisha camp denies.

International monitors are due to issue a final report on the elections in a few weeks. (dpa)

Left will join a secular, non-BJP, non-Congress government at the Centre: Bhattacharya

Kolkata, May 11 (ANI): The Left will join a secular, non-BJP, non-Congress government at the centre if its based on the right economic and foreign policies, has the interests of the poor, the working class and wherein, the Left can play a meaningful role, according to West Bengal Chief Minister, Buddhadeb Bhattacharya.

He pointed out that the Party Congress had taken this decision following the ‘historic blunder’ when Jyoti Basu was not allowed to become the Prime Minister because the Left decided against joining the then government.

Addressing a press conference in Kolkata today, Bhattacharya also said there was no surety that the Congress-Trinamul alliance in West Bengal would last beyond the poll period.

On a question on whether the Left would support a Congress-led government which has Mamata Banerjee as an alliance partner, Bhattacharya said even Pranab Mukherjee was not sure that the TMC will remain with the Congress, hence, such a scenario would not arise.

On Congress leader Pranab Mukherjee’s recent statement that it would take another 250 years for the Left to form a government at the centre, Bhattacharya said first of all the Left was not trying to form its own government at the centre right now.

He also queried why the Congress numbers in Parliament have seen a steady decline in the subsequent Lok Sabhas. The CPI(M) leader, however, conceded that Pranab Mukherjee was a ‘bhadralok’ who had to carry around a booklet which pointed out the Left failures while he kept the actual facts in another booklet at home. Bhattacharya said Pranab Mukherjee was actually “not happy” bashing the Left.

On a more worrying note, the Bengal Chief Minister said the violent era of the 70′s has returned to Bengal. Pointing out that the state had witnessed turbulent times from 71-77, during the Congress rule, when the Naxalite movement reached its peak, he said that kind of chaos, violence and lawlessness has returned to the state since the emergence of the Trinamul Congress.

He said it was accepted that in politics only political dialogue would do the needful but while the ruling Left Front was trying to find political consensus on different issues through dialogue, the Trinamul Congress was bringing back the violence.

He also said national parties like the BJP were trying to divide Bengal.

The Chief Minister said it was dangerous that BJP has put up a candidate in Darjeeling, taking responsibility to carve an independent state out of Darjeeling, Coochbehar, Jalpaiguri. He said it was not just the local groups who are demanding division of Bengal, some political leaders of some political parties were actively supporting divisive demands like the one in the west where there is demand for joining the districts of west Midnapore, Purulia and Bankura to Jharkhand.

He said even if the Left had fallen short on its anti-division campaign, it was surprising that the opposition was absolutely silent on the issue. Mr Bhattacharya demanded to know the stand of the Congress and the Trinamul on Darjeeling. He reiterated that the Left will not allow Bengal to be divided again.

Even though the Chief Minister took great pains to stress that the mandate for the Lok Sabha would be a mandate on central politics and would in no way be a reflection on his industrial policy, he reiterated that an industrial project would definitely come up in Singur.

He also said he was willing to admit a mistake and had therefore apologized for the police firing in Nandigram. He however, made it clear that the current spate of violence in Nandigram had nothing to do with land acquisition, which had anyway been cancelled, but every thing to do with the vested interests of the opposition. By Ajitha Menon (ANI)

Arun Jaitley promises to set up commission to probe CBI’s role in Bofors case

New Delhi / Rai Bareli, Apr 29 (ANI): Bharatiya Janata Party (BJP) General Secretary Arun Jaitley has said that if voted back to power, a commission would be formed to investigate the role of the Central Bureau of Investigation (CBI) in the high-profile Bofors arms scandal.

Flaying at the CBI for withdrawing Interpol red corner notice against Quattrocchi, a key figure in the Bofors arms deal, Jaitley said that the CBI has worked under the influence of the Central Government ruled by the Congress Party, and hence the need for a commission to ascertain the truth.

However, defending the Congress Party, Congress spokesperson and Minister of State for External Affairs Anand Sharma considered the BJP allegation as a clear case of double standards and using it for electoral purposes.

Sharma recalled that in 1990 Jaitley, as the then Additional Solicitor General was associated with the investigations into the Bofors case.

Further, he added that in 2004, Jaitley was the Central Law Minister and even then could not do anything as such holding Congress responsible for the CBI’s action is illogical.

“Jaitley, I think has forgotten that during the V P Singh ruled Government, he was the Additional Solicitor General and had gone on a world tour in 1990 promising the country to bring evidence in the case. In 2004, the Delhi High Court took a decision stating no evidence and during that tenure Jaitley was the Law Minister and L K Advani the Home Minister. What did they do?” asked Shrama.

Meanwhile, at Rae Bareli, Uttar Pradesh Chief Minister Mayawati, commenting on the Bofors scam said that the CBI needs to again look into the matter so that the real culprits of the high profile scam are brought to book. (ANI)

Germany’s Social Democrats set to launch election platform

Berlin – Leaders of Germany’s Social Democratic Party (SPD) met in Berlin on Saturday to approve an election manifesto designed to win over voters with promises of more cash.

Key points of the platform are tax cuts and state handouts for low income groups and families with children to be financed in part by a tax on the rich and a levy on stock transactions.

The centre-left SPD is seeking to distance itself from Chancellor Angela Merkel’s conservative Christian Democrats (CDU) as Germany’s two coalition partners gear up for a parliamentary election on September 27.

Campaigning is expected to be dominated by the fallout from the economic crisis, which has hit key sectors of German industry and put tens of of thousands of workers on reduced hours with less pay.

The SPD measures “are the right answer” to the unprecedented downturn, said Ralf Stegner, a member of the party’s executive bureau, ahead of Saturday’s meeting.

The programme includes a 4-point reduction in the lowest bracket of income tax to 10 per cent as well as a 200-euro (264 dollars) tax break for families with children.

There is also a 300-euro bonus for people on low wages if they forgo filling in a tax return, a move the party says will also help cut red tape.

The measures will be counter-financed by a 2 point increase in the top tax band to 47 per cent for people on annual incomes of 125,000 euros upwards and a 0.5 per cent levy on stock exchange transactions.

The party estimates these steps would generate 5 billion euros in extra revenue, part of which would be used to improve educational facilities.

“We are providing relief to the centre by lowering the opening tax rate and by investing more in the education of their children,” said Foreign Minister Frank-Walter Steinmeier, the man chosen by the SPD to challenge Merkel for the chancellorship in September.

Steinmeier is due to unveil the election manifesto on Sunday before it is presented for approval to a party congress in Berlin on June 14. (dpa)

ROUNDUP: Hungarian premier resigns over economic crisis

Budapest – Hungarian Prime Minister Ferenc Gyurcsany announced his resignation on Saturday, saying a new government with a new leader was needed to tackle his country’s economic meltdown.

Hungary has been particularly hard hit by the global recession and Gyurcsany has seen his personal popularity hit a rock bottom of 18 per cent – the lowest for any Hungarian premier since the fall of communism.

At a congress of his Hungarian Socialist Party (MSZP) in Budapest, the deeply unpopular premier spoke of the need for a wider social consensus to tackle the crisis.

“I hope I am the only obstacle to this, and if I am, then I will now remove that obstacle,” Gyurcsany said.

He said he would inform parliament of his decision on Monday and called for an extraordinary party congress to be held in two weeks’ time, where the new party leader and prime minister should be selected.

A vote of no confidence in Gyurcsany will be then initiated in parliament on April 14 the MSZP decided.

“I do not want to go, I do not want to give up my mission… I want to lead the Socialist Party,” Gyurcsany added.

With an already weak economy after years of overspending, Hungary needed a 25-billion-dollar IMF-led rescue loan last October at it looked set to default on foreign debts.

Since then, the domestic economic downturn has worsened, with over 30,000 jobs lost since October and forecasts for negative economic growth this year being revised downwards almost monthly.

Gyurcsany did not name a potential successor but shortly after the announcement former finance minister Lajos Bokros told journalists that he was prepared to take on the job.

Bokros served in the 1994 to 1998 socialist government. His “Bokros Package” of severe austerity measures helped pull the country out of an earlier economic crisis, but also destroyed the popularity of the then socialist government.

Nevertheless he is considered credible among reformists and analysts who believe that Hungary must rein in its bloated public spending, currently over 50 per cent of gross domestic product, and cut taxes in order to stimulate the economy.

The leader of the conservative Hungarian Democratic Forum, Ibolya David, earlier this month proposed that a constructive vote of no confidence be held to replace Gyurcsany with Bokros.

An opinion poll published last Thursday in the weekly news magazine HVG showed that Gyurcsany’s approval rating had fallen to just 18 per cent, the lowest of any premier since Hungary became a democracy 20 years ago.

Furthermore, 91 per cent of respondents agreed that the country is “going in the wrong direction.”

The centre-right opposition party Fidesz has held a commanding lead in the polls since 2006 when the MSZP introduced a draconian austerity package shortly after securing a second term in office.

The HVG survey, conducted by pollster Median, showed that Fidesz is supported by 66 per cent of decided voters, compared to just 23 per cent for the MSZP.

Nevertheless, Fidesz has been criticised by Hungary’s government and other opposition parties for failing to produce a crisis management plan of its own.

The leak in September 2006 of private party speech in which Gyurcsany acknowledged lying about the economy to win re-election sparked rioting and anti-government protests that have continued sporadically ever since. (dpa)

Hungarian premier to step down and make way for “wider consensus”

Budapest – Hungarian Prime Minister Ferenc Gyurcsany said on Saturday he will step down from office, calling for a new government with a new leader to tackle Hungary’s economic crisis.

At a congress of his Hungarian Socialist Party in Budapest, the deeply unpopular premier spoke of the need for a wider social consensus to tackle the crisis.

“I hope I am the only obstacle to this – and if I am, then I will now remove that obstacle,” Gyurcsany said.

He said he would inform parliament of his decision on Monday, and called for an extraordinary party congress to be held in two weeks’ time to select the new party leader and prime minister.

“I do not want to go, I do not want to give up my mission,” Gyurcsany added. He did not name a potential successor. (dpa)