HUNGARY: Hungary's opposition Socialists began talks yesterday on forming a coalition ready to govern after taking a surprise lead in first round legislative elections in the leading EU candidate country.
The Socialists, who were ousted by the conservative Prime Minister, Mr Viktor Orban, in 1998, will have to wait for a second round of voting on April 21st for a definitive result, but analysts say they are clear favourites to gain power. Mr Orban's conservative Fidesz party said all was not lost for the second round, even though it is running slightly behind the Socialists and has no potential coalition partners.
"Fidesz is confident that we can turn the vote around in the second round," said the right-wing party's president, Mr Zoltan Pokorni, adding that the rural vote would be crucial. But most analysts disagree. "The victory of a Socialist-liberal coalition has become highly likely," said Mr Attila Agh.
Mr Peter Medgyessy, the mild-mannered Socialist candidate for prime minister, confirmed that his party had begun talks with the left-leaning liberal Alliance of Free Democrats (SZDSZ).
"We have started coalition talks," he said. "The stake is to win the elections so our talks are focussing on that," added Medgyessy, whose low-key style is in stark contrast to Mr Orban's charismatic oratory.
The Budapest stock exchange surged surged 300 points on the election result, with analysts saying dealers were anticipating several key measures pledged by the Socialists, including less state intervention in the market.
"We are very happy with the confidence that has been expressed by investors," said Mr Medgyessy, adding: "We can guarantee predictability for the economy." Hungary has the most booming economy in central Europe and hopes to join the EU by 2004. But the Socialists claim the boom has benefited only part of society, leaving a huge gap between the haves and have-nots.
On Sunday the Socialists won 42 per cent of the vote against 41 per cent for Fidesz, while the SZDSZ received 5.55 per cent. Under Hungary's election system, the most complicated in Europe, some 185 of the 386 parliamentary seats were decided on Sunday, while the rest will be decided in the second round. The far-right Party of Justice and Life won 4.36 per cent of the popular vote, less than the crucial 5 per cent floor required to win parliamentary seats. - (AFP)