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Macro: police clashes with protesters in Budapest

19.09.2006 10:34
Autor: KBC/Patria

Television channels showed Monday night/Tuesday dawn that few thousand (according to some sources more than ten thousand) protesters tried to occupy state television on Monday night claiming publicity and the step back of PM Mr Gyurcsany. Police tried to use water -canons and tear-gas to dissolve the crowd - without success. Protester occupied the already evacuated building in the dawn, and started looting it. Police finally got back the control over the building in the early morning. After the riots Minister of Justice and Law Enforcement, Mr Petretei offered his resignation to the Prime Minister, but Mr Gyurcsany did not accepted that. Earlier yesterday parliamentary fraction of ruling Socialist party maintained the support of the Prime Minister, who admitted on Sunday that government lied in the past to win April's general elections. President of Hungary, Mr. Solyom said PM drove the country to a moral crisis and asked Mr Gyurcsany to apologize the nation. In the Hungarian political system president cannot call back the PM, which is elected by the parliament and reports to this body.

Our view: We saw an almost revolutionary situation with the police practically unable to dissolve the crowd for many hours. Continuous battles, cars in flames, injured people and an incapable police could describe the situation. We had the feeling that unrest could remain unresolved until the resignation of the PM. Since this could lead to a growing political uncertainty and stuck in fiscal reforms, we expect a significant negative market reaction on the developments today.


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