FORMER ECONOMY minister Gordon Bajnai became Hungary’s prime minister yesterday, at the head of a cabinet tasked with slashing public spending and mitigating the social impact of a looming recession.
“As the leader of the crisis-management government I have no political ambition. I am not and will not be a political rival to anyone in a year. But after a year I want to be able to tell everyone that we have done our utmost to facilitate the quick recovery of the country,” Mr Bajnai told parliament before 204 of its 385 members approved his appointment as premier.
Mr Bajnai (41) replaces Ferenc Gyurcsany as prime minister following the latter’s surprise resignation last month. The former Socialist party leader said he had too little personal public support or backing from opposition parties to push through the tough reforms that Hungary needs.
Hungary was the first European Union member to seek help from the International Monetary Fund last year, when it secured a €20 billion loan to prop up an economy that is labouring under a huge deficit and is heavily dependent on foreign credit, which has become harder to access and more expensive with the local forint currency plunging in value.
Mr Bajnai plans to freeze public salaries for two years and scrap the so-called 13th-month payment for state employees and pensioners, while also scaling back energy subsidies for domestic consumers, cutting benefits and raising the retirement age.
According to Hungarian media, he might base his budget for next year on a prediction that the economy may shrink by as much as 6 per cent.
“The crisis management programme is based on the four targets of the immediate crisis management measures, of restoring economic balance, restarting economic growth and regaining confidence,” Mr Bajnai told parliament.
“I leave ideological debates for politicians, as the crisis has no ideology and the forint, similarly, has no party.”
The appointment of Mr Bajnai, a successful businessman and political independent, averts the immediate possibility of snap general elections ahead of a scheduled vote next year, although several thousand protesters marched outside parliament in Budapest yesterday to demand an early poll.
“I came because I think early elections need to be held in the current crisis,” said Istvan Horvath (62).
“I hope that sooner or later the desire of the majority of the people will be heard and respected.”