Hungary - Early Post-Communist Developments
Hungary played a key role in the fall of Communism in 1989 by opening its borders allowing East Germans to enter Austria. Since then it's transition to parliamentary democracy has run smoothly. The first democratic elections after the collapse of communism were held in March/April 1990. Subsequent elections were held in 1994, 1998 and 2002, with center-right and center-left coalitions being elected in succession, each serving a full 4-year term.
The first free parliamentary election, held in May 1990, was a plebiscite of sorts on the communist past with the Democratic Forum (MDF) winning 43% of the vote and the Free Democrats (SZDSZ) capturing 24%. Under Prime Minister Jozsef Antall, the MDF formed a center-right coalition government with the Independent Smallholders' Party (FKGP) and the Christian Democratic People's Party (KDNP) to command a 60% majority in the Parliament. Parliamentary opposition parties included SZDSZ, the Socialists (MSZP), and the Alliance of Young Democrats (Fidesz). Peter Boross succeeded as Prime Minister after Antall died and the Antall/Boross coalition governments achieved a reasonably well-functioning parliamentary democracy and laid the foundation for a free market economy.
In May 1994, the Socialists came back to win a plurality of votes and 54% of the seats after an election campaign focused largely on economic issues and the substantial decline in living standards since 1990. A heavy turnout of voters swept away the right-of-center coalition but soundly rejected extremists on both right and left. The MSZP continued economic reforms and privatization, adopting a painful but necessary policy of fiscal austerity (the "Bokros plan") in 1995.
After the change of regime Hungary quickly embarked on a program to institute a free market economy. Privatisation got underway more quickly than in many transition countries. There was, however, a macro-economic downside. In March 1995 the then-Socialist government was forced to implement an austerity package (the Bokros package) to address structural problems. This was in reaction to a huge rise in the trade/government deficit and a surge in inflation. During the late 1990s, the Hungarian economy reaped the benefits of those measures.
Dissatisfaction with the pace of economic recovery, rising crime, and cases of government corruption convinced voters to propel center-right parties into power following national elections in May 1998. The Federation of Young Democrats (renamed Fidesz-Hungarian Civic Party (MPP) in 1995) captured a plurality of parliamentary seats and forged a coalition with the Smallholders and the Democratic Forum. The new government, headed by 35-year-old Prime Minister Viktor Orban, a right-wing nationalist, promised to stimulate faster growth, curb inflation, and lower taxes. Although the Orban administration also pledged continuity in foreign policy, and continued to pursue Euro-Atlantic integration as its first priority, it was a more vocal advocate of minority rights for ethnic Hungarians abroad than the previous government.
In April 2002, the country voted to return the MSZP-Free Democrat coalition to power. The Medgyessy government placed special emphasis on solidifying Hungary's Euro-Atlantic course, which culminated in Hungary's accession to the European Union on May 1, 2004. Prime Minister Medgyessy resigned in August 2004 after losing coalition support following an attempted cabinet reshuffle. Ferenc Gyurcsany succeeded Medgyessy as Prime Minister in September 29, 2004.
The President, László Sólyom, was elected by parliament in June 2005 and inaugurated on 5 August 2005. President Sólyom is a constitutional lawyer and three times President of the Hungarian Constitutional Court. Under the constitution, the President has relatively little executive power, but does provide a check on the constitutionality of government legislation.
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