Starting in Poland, the revolutionary wave of ´89 brought about a “wind of change” for many former communist states. In Hungary, the date of the reburial of Imre Nagy, in June 1989, where attendants openly called out for the Soviets to leave the country, is considered the end of communism. However, the withdrawal of Soviet troops only began in July 1990, and it was performed with 35 000 railway cars. The last unit left Hungary at Záhony. The most symbolic events of this period were the opening of the 40-kilometre-long border gate between Hungary and Austria[1] and then; just in two months; the fall of the Berlin Wall between East and West Germany, which then caused the unification of the two nations. These proceedings triggered a chain reaction and caused the dismantling of the ´Iron Curtain´. The fall of communism in Central and Eastern Europe prompted the breakup of the USSR (December 1991), which in turn, resulted in the change of the power balance and thus led to the end of the Cold War.
The transition from communism to democracy (regime change – rendszerváltás) in the political landscape of the country was peaceful and it was prompted by changing relations with Warsaw Pact countries as well as by domestic political pressure and economic stagnation. In 1989; after Miklós Németh became Prime Minister; a new ´democracy package´ was adopted by the Parliament, including a new electoral law, a revision of the constitution, and trade-union pluralism. In May 1990, in the first democratic election since WWII, the Hungarian Democratic Forum (MDF) was elected with József Antall as prime minister and formed a center-right coalition government. Nevertheless, rapid privatization in 1991 resulted in severe economic recession and the austerity measures applied by the government were highly unpopular. Thus, in the 1994 election, the Socialist Party won and Gyula Horn became the new prime minister. This signaled a wish for more security and financial stability. However, to avoid bankruptcy, the Horn government began the privatization of state enterprises by selling them to multinational companies. Hence, the critics of the Socialist Party claimed that the party’s reforms are more right-wing than previous right-wing governments´. Additionally, during the governance of the Socialist Party crime rates rose and there have been allegations of government corruption. Consequently, there had been a major shift in Hungary´s political landscape in 1998, when the opposition party, the Fidesz with Viktor Orbán as a frontal figure, won the elections.
After the 1994 elections, the Fidesz changed its political course from liberal to a more conservative direction which resulted in a split in membership, and after the elections of 1998, they formed a coalition government with the Democratic Forum and the Smallholders. For stimulating the economy, this new government promised lower taxes, abolished tuition fees, and for the encouragement of local production, it also aimed to create good market conditions for small businesses. Furthermore, this new government sought the support of minority rights for ethnic Hungarians abroad, and in 1999 Hungary joined NATO. Nevertheless, the Fidesz came under attack for their representation of history in which they indicated that the Socialist Party is the successor of Communists in both moral and legal terms, whereas the Socialists claim that changes started from within their party. Thus, another major shift in the political landscape of Hungary occurred in 2002 when the left-wing coalition (MSZP/SZDSZ) won the elections, and Péter Medgyessy became the new prime minister.
While the infrastructure and technology improved during the governance of MSZP/SZDSZ, the economy of Hungary began a free fall. In 2004 Hungary joined the European Union (EU). In the following, in 2006, the government was reelected but now with Ferenc Gyurcsány as prime minister. While this new government promised sustainable economic growth, it reduced instead the standard of living by increasing taxes and also restructured the state administration. Besides, in the same year (i.e. 2006), Prime Minister Ferenc Gyurcsány also revealed in a closed-door speech that his party lied to win the elections. This was received by nationwide protests and was followed by a decline in the popularity of left-wing parties. In addition, the changed relation to private businesses and the changing health and welfare sector steered complaints from affected professionals according to which the changes were lacking discussion and compromise. The restructuring of the healthcare system was stopped by a referendum initiated by Fidesz in 2008. Nevertheless, as a consequence of the 2008 financial crisis, further budgetary constraints emerged. In 2007, Hungary also joined the Schengen agreement.
In 2010, the conservative Fidesz with Viktor Orbán once more regained power by winning supermajority in the parliamentary elections and thus gaining two-thirds of the parliamentary seats. A new constitution was introduced and approved by the legislature. In addition, the government introduced the so called flat tax system in which income taxes are 16% for everyone. The Fidesz generated economic growth by decreased unemployment, centralized the education system and presented increased salaries for health professionals and teachers. Nevertheless, critics of the Orbán government claim that these changes brought still more inequality since the rich got richer while the number of people living below poverty increased. Moreover, the Orbán government came under increased international scrutiny over alleged rule-of-law violations in the late 2010s. Although the European Parliament voted in 2018 to take actions against Hungary, the allegations are still not proven, and the Fidesz could enjoy a new supermajority in both the 2014 and 2018 elections.
During the ´migrant crisis´ in 2015, the government built a border barrier at the border to Croatia and Serbia to control illegal entrance and forced entrance was met by police. Hence, the barrier had been reinforced in 2016 whereas the EU approved mandatory migrant quotas. Nevertheless, the results of a referendum showed that 98% of voters rejected these quotas, and the Fidesz, together with its sister party; KDNP; won again supermajority in the 2018 elections.[2]
[1] “The idea of opening the border came from Otto von Habsburg… Extensive advertising for the planned picnic was made…among the GDR holidaymakers in Hungary. The Austrian branch of the Paneuropean Union, which was then headed by Karl von Habsburg, distributed thousands of brochures inviting them to a picnic near the border at Sopron.”
[2] While in the 1920s the history of Hungary was rewritten to emphasize nationalism and deemphasize Austrian influence, following the war and until 1989 only Marxist interpretations were allowed.
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Written by Gertrúd Windberg 2023, Sundbyberg
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