Hungary moves to sue ex-PMs over rising debt

HUNGARY’S GOVERNMENT is trying to introduce legislation that would allow the state to charge three former prime ministers with…

HUNGARY’S GOVERNMENT is trying to introduce legislation that would allow the state to charge three former prime ministers with “criminal” mismanagement of economic policy after the national debt spiralled upwards in the last decade.

In a step that could provoke alarm among officials in other heavily indebted countries, the centre-right Fidesz government is focusing on three former socialist premiers from 2002-2010, and potentially their finance ministers. State debt rose in the period from 53 per cent of gross domestic product to 80 per cent.

Opposition parties have denounced the move as the latest attempt by the government of prime minister Viktor Orban to undermine its socialist rivals, after winning a two-thirds parliamentary majority last year. But if successful, it could set an international precedent by holding officials criminally responsible for the results of their policies.

The attempt has parallels with Ukraine, where Yulia Tymoshenko, the former prime minister, is standing trial over a 2009 gas deal she signed with Russia that prosecutors say caused damage to the state worth $190 million.

READ MORE

Hungary’s move follows a parliamentary investigation into the economic policies of Peter Medgyessy, Ferenc Gyurcsany and Gordon Bajnai.

The investigation proved the socialist-led coalitions had “committed a political crime against Hungary” and should be held responsible, said Peter Szijjarto, deputy chairman of the committee responsible.

Mr Gyurcsany, Hungary’s premier in 2004-09 and widely seen as the prime target of the government’s attempts to bring charges, denies wrongdoing.

“This criminalisation action, making it retrospective, raises many questions. I cannot see how it is lawful. This is part of the complicated political game led by Fidesz [to discredit me],” said Mr Gyurcsany. – (Copyright The Financial Times Limited 2011)