Left and right in contest to lead Hungary's ruling Socialist Party

HUNGARY: A millionaire tycoon and a stalwart left-winger are crossing swords in a battle for the Hungarian leadership which …

HUNGARY: A millionaire tycoon and a stalwart left-winger are crossing swords in a battle for the Hungarian leadership which has opened up deep divisions in the ruling Socialist Party, writes Daniel McLaughlin in Budapest

Charismatic businessman Mr Ferenc Gyurcsany is a surprise challenger to former labour minister Mr Peter Kiss after a tight vote among members of the beleaguered Socialist Party, which ousted its prime minister last week amid plunging popularity and bitter in-fighting.

Leading Socialists toppled Mr Peter Medgyessy after he tried to fire a cabinet minister from a junior member of the ruling coalition, a move which threatened to break an alliance under increasing pressure from the resurgent conservative Fidesz party.

"The government's policies should be braver," Mr Gyurcsany (43), said, two days before a party congress votes whether to nominate him or Mr Kiss as its candidate for new prime minister. "I do not agree with those who think only minor alterations are needed. I am planning to make substantial changes," the businessman and former sports minister said.

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Mr Gyurcsany told Magyar Hirlap newspaper that the government needed to offer a clear and achievable vision to win back the trust of a public which is tiring of squabbles within the coalition and appears to be drifting back towards the centre-right policies of Fidesz leader and former Prime Minister, Mr Viktor Orban.

"The party should have a government, not the other way round, and finally a clear, honest programme is needed: we do what we say but only say what we are really able to do," Mr Gyurcsany said.

Top party officials had hoped to usher Mr Kiss (45) into the premiership as the sole Socialist candidate and were stunned by Mr Gyurcsany's showing in Saturday's initial vote.

The real-estate magnate, whose fortune is estimated at €14 million, was drafted into politics by Mr Medgyessy as a strategic adviser in 2002, who hoped his eloquence and energy would shake up a Hungarian left which was struggling to escape its communist legacy and stifling party bureaucracy.

His smooth manner and personal wealth have seen him dismissed as a "champagne socialist" by the party's old guard, but many now believe that he could have the dynamism and charisma needed to challenge Mr Orban.

Mr Kiss has been prominent in the Socialist Party since its creation in 1989 and is seen as a champion of the left wing, favouring higher taxation, greater social spending and maintaining close ties to the trade unions.

He has a reputation as a smooth operator behind the scenes, with enough political savvy to unite an often-divided coalition, but lacks the obvious public appeal of his rival. Mr Kiss railed against the perceived populism of Mr Gyurcsany in his own comments to Magyar Hirlap.

"We are not looking for a socialist Orban," he said. "I have a clear leftist position that represents the programme of the Socialist Party and the coalition, a programme that is about people and not politicians."

Whoever gains the party nomination tomorrow is expected to win parliamentary approval easily to become prime minister in early September. However he will take over a party and government wracked by disagreement over the correct course for a country of 10 million people which joined the European Union in May.

While the Socialists propose raising taxes on high incomes, increasing salaries of state employees and helping low-income families, its coalition partners want to cut taxes and privatise state assets and some social services, including parts of the health system.