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Buchwald Amy

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date=6/7/94
type=correspondent report
number=2-159849
title=Hungary-politics (l)
byline=Ron Pemstein
dateline=Vienna
content=
voiced at: 

Intro:  Representatives from Hungary's Socialist Party and the 
Alliance of Free Democrats have opened talks in Budapest on the 
possibilities of forming a coalition government following the 
socialists' victory in last month's election.  Ron Pemstein 
reports the second place party is being careful about the 
coalition's prospects despite a similar economic program.

Text:  The Liberal Alliance of Free Democrats has just 18 percent
of the seats in the new hungarian parliament.  The former 
communists, the socialists, by contrast, hold 54 percent of the 
seats and can form a government without the free democrats' help.

The socialists say difficult decisions must be made to stop 
inflation, to control government spending and unemployment. They 
want those programs to win broad support in parliament.

The concern for the free democrats is that they will be held 
responsible for unpopular measures as part of the government but 
they will have little role in shaping them because the socialists
hold the absolute majority. 

As party chairman Ivan Peto told Hungarian Radio, we have to set 
up working procedures for government and it has to be set up 
between two parties whose standpoints on certain issues are close
but on other issues are extremely different.

Taking part in tuesday's talks for the socialists was Laszlo 
Bekesi, the man expected to be finance minister in the next 
government.  Mr. Bekesi's program is close to that of the liberal
free democrats.  It calls for cuts in government spending to 
bring inflation under control.  However, the free democrats worry
the Hungarian Labor Unions may have too much influence on the 
socialist dominated government, encouraging more social welfare 
spending to raise living standards.

Mr. Peto says it is evident we cannot take real responsibility 
for government if we have  no  real say in decision-making.  The 
free democrats' leader says the task of the coalition talks is to
ensure that proposals of both parties are represented.  

Hungarian president Arpad Goencz has named Socialist Party leader
Gyula Horn to form the new government and has called the first 
session of parliament for june 28th.  The prime 
minister-designate says he hopes the structure of the new 
hungarian government will be in place by the end of june or early
july. (Signed)

neb/rp/mmk

07-jun-94 9:28 am edt (1328 utc)
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source: Voice of America