RADIO FREE EUROPE/RADIO LIBERTY, PRAGUE, CZECH REPUBLIC
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RFE/RL NEWSLINE Vol 2, No. 88, 11 May 1998

...AND PRAISES POLISH REFORMS. The EBRD also praised Poland
for its well-advanced reforms and gave the Polish economy
second place in Central Europe, after Hungary. The bank
praised in particular Poland's transformation of its legal
system but pointed to the slow pace of restructuring the
financial sector. JM

HUNGARIAN RULING PARTY LEADS AFTER FIRST ROUND OF ELECTIONS.
The Socialist Party won 32.2 percent of the vote in the
first round of the parliamentary elections on 10 May
(compared with 33 percent in 1994). But Its coalition
partner, the Free Democratic Party, suffered substantial
losses, gaining only 7.8 percent (19.7 percent four years
ago). With 28.2 percent of the vote (7 percent in 1994),
FIDESZ emerged as the main contender among opposition
parties. Owing to election agreements with other opposition
parties on supporting best-placed candidates, FIDESZ may
emerge as the winner after the second round of the
elections, to be held in two weeks. The Smallholders Party
increased its support from 8.8 percent to 13.7 percent. For
the first time, the far-right Justice and Life Party passed
the electoral threshold, winning 5.5 percent of the vote.
Turnout was 56 percent, compared with 69 percent in 1994. MS

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RADIO FREE EUROPE/RADIO LIBERTY, PRAGUE, CZECH REPUBLIC
___________________________________________________________
RFE/RL NEWSLINE Vol. 2, No. 89, 12 May 1998

YELTSIN ON NATO. In his speech to the Foreign Ministry,
Yeltsin expressed the hope that Russian cooperation with
NATO will transform that organization into an alliance that
"strengthens" rather than "threatens" European security,
RFE/RL's Moscow bureau reported on 12 May. Reaction to the
U.S. Senate's vote on NATO membership for Poland, Hungary,
and the Czech Republic has been muted in Russia; Foreign
Ministry officials did not comment for several days (see
"RFE/RL Newsline," 6 May 1998). The Russian Defense Ministry
on 7 May issued a statement saying the U.S. made a "fatal
mistake" in approving NATO expansion plans, which, it said,
will impede START-2 ratification by Russia, Interfax
reported. Meanwhile, AFP on 11 May quoted the Danish Defense
Ministry as saying a Russian platoon will take part in NATO
military exercises in Denmark from 18-29 May. It will be the
first participation by Russian troops in military exercises
under the alliance's Partnership for Peace program. LB

HUNGARY'S SOCIALISTS HOPE TO STAY IN POWER... Gyula Horn,
chairman of the ruling Socialist Party, said on 11 May that
his party has good chances in the second round of elections
since its candidates are leading in 113 out of the 175
single-mandate constituencies where a second ballot is to be
held. He asked the Socialists' coalition partner, the Free
Democrats (SZDSZ), to withdraw their candidates in all
constituencies, except for the two in which the SZDSZ is
leading. Asked about the possibility of a "grand coalition,"
Horn said "in politics nothing can be ruled out," but
emphasized that the Socialists will not make any advances to
their main center-right challenger, the Federation of Young
Democrats-Hungarian Civic Party (FIDESZ-MPP). MSZ

 ...WHILE OPPOSITION DETERMINED TO OUST GOVERNMENT. FIDESZ-
MPP deputy chairman Janos Ader said on 11 May that his
party's candidates will step down in the second round in
favor of the Independent Smallholders (FKGP) candidates who
fared better in the single-mandate constituencies. He added,
however, that "there is nothing else to discuss with the
FKGP." Smallholders' chairman Jozsef Torgyan said the
FIDESZ-MPP can form a government only with the FKGP, adding
that his party is ready to withdraw its candidates in favor
of the FIDESZ-MPP only if it has a role in a new government.
Both FIDESZ-MPP and the FKGP have ruled out involving the
far-right Hungarian Justice and Life Party (MIEP) in
opposition consultations. The MIEP seems set to enter the
parliament for the first time. MSZ

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               Copyright (c) 1998 RFE/RL, Inc.
                     All rights reserved.
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