Péter Medgyessy
Encyclopedia
Péter Medgyessy is a Hungarian
politician and was the fifth Prime Minister of the Republic of Hungary from May 27, 2002 until September 29, 2004. On August 25, 2004 he resigned over disputes with coalition partner Alliance of Free Democrats
, but remained caretaker Prime Minister for a 30-day period as required by the Constitution, and a few additional days until his successor Ferenc Gyurcsány
was confirmed by Parliament
.
at the Corvinus University of Budapest
(then called Karl Marx University of Economic Sciences). He graduated in 1966, then returned to receive his doctorate. He is fluent in French
and Romanian
, and knowledgeable in the English
and Russian
languages.
Between 1988 and 1990, Medgyessy was the Deputy Prime Minister for economic affairs, and between 1990 and 1996, he was CEO and Chairman of various Hungarian bank
s. After Gyula Horn
took over the Hungarian government, Medgyessy returned to his previous position as Minister of Finance, in 1996. After his term ended, he became Chairman of the Board of Directors of the Inter-Europa Bank, and Vice President of Atlasz Insurance Company; he held these positions from 1998 to 2001.
He received the Commander's Cross with a Star of the Order of Merit
in 1998, and the highest French
decoration, the Chevalier of the Legion of Honour
in 2000.
(MSZP) nominated him as their candidate for prime minister. The party won the 2002 elections, and on May 27, 2002, the Hungarian Parliament elected Medgyessy as the Prime Minister of Hungary.
Magyar Nemzet
, a newspaper affiliated with the opposition party Fidesz
, revealed in 2002 that Medgyessy had acted as a counterespionage officer under the code name D-209 in the III./II. section of the then Ministry for Internal Affairs prior to 1989. Medgyessy admitted to this, stating that his duties lay in the defense of Hungary from the KGB
and securing Hungary's International Monetary Fund
membership, which the Soviet Union
opposed. However, given the political climate of the time, this is highly controversial.
Under his prime ministership the 2003 Hungarian European Union referendum
took place on 12 April 2003 to decide whether Hungary should join the European Union
. All of the major political parties in Hungary, the trade unions, business oragnisations, churches and media supported membership of the EU. Medgyessy announced the result at a celebration on the banks of the Danube
telling them 'Allow me to officially announce that the Hungarian republic will be a member of the European Union.'
On August 19, 2004, due to impaired confidence in him by the coalition partner Alliance of Free Democrats
(SZDSZ), he declared his resignation. His party, the MSZP accepted it on the same day, so in effect the government bowed out, which is without precedent in the history of Hungary's young democracy. The resignation took effect on August 25, and in accordance with the Hungarian Constitution he became "acting Prime Minister" for the next 30 days. In the meantime his successor, Ferenc Gyurcsány
, acted on his behalf. Medgyessy stepped down as Prime Minister in August 2004 and was succeeded by Gyurcsány.
because of his weak rhetoric
al abilities and his style during his governance. From his mistakes and his bad draughtings a book was published with a title of Medgyessyizmusok (Medgyessyism, in analogy to Bushism
).
Referring to Hungarian exporters' interests, he opted to decrease the central value of the floating exchange rate
range of the forint. Investors regarded this as an incomprehensible step and a flawed piece of economic policy and started selling forints and Hungarian government bond
s, which led to considerable interest rate hikes by the National Bank of Hungary.
Fulfilling the promise of "Change of welfare regime", the slogan of his campaign in the 2002 elections, the Medgyessy government increased wages of civil servants by 50%, and increased allowances for university students and pensioners, the latter group also receiving a one-time pension supplement. Economists criticised this move, calling it an irresponsible drain on the budget, amounting to nearly 190 billion Forints, in their opinion purely to increase the administration's popularity.
During his government, political attacks were launched against some independent senior civil servants who had been appointed by the previous Viktor Orbán
cabinet. Court rulings subsequently established that the head of the Hungarian Energy Office and the chairman of the Hungarian Statistical Office were removed from their positions unconstitutionally and illegally. The chief of the Hungarian Financial Supervisory Authority was removed without legal challenge, however without any material basis related to his performance in office.
decoration, the Chevalier of the Legion of Honour
in 2000. In 2002 he received the Grand Cross of the Belgian Order of the Crown
and the Gold and Silver Star of the Japanese Order of the Rising Sun
, and in 2003, the Grand Cross of the Order of the Merit of Chile
and the Royal Norwegian Order of St. Olav. In 2004 he became a Grand Officer of the French Lggion of Honour and received the German Federal Cross of Merit.
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...
politician and was the fifth Prime Minister of the Republic of Hungary from May 27, 2002 until September 29, 2004. On August 25, 2004 he resigned over disputes with coalition partner Alliance of Free Democrats
Alliance of Free Democrats
The Alliance of Free Democrats – Hungarian Liberal Party is a liberal party in Hungary, led since July 2010 by Viktor Szabadai . The SZDSZ is a member of the ELDR and of Liberal International...
, but remained caretaker Prime Minister for a 30-day period as required by the Constitution, and a few additional days until his successor Ferenc Gyurcsány
Ferenc Gyurcsány
Ferenc Gyurcsány is a Hungarian politician. He was the sixth Prime Minister of Hungary from 2004 to 2009.He was nominated to take that position on 25 August 2004 by the Hungarian Socialist Party , after Péter Medgyessy resigned due to a conflict with the Socialist Party's coalition partner...
was confirmed by Parliament
National Assembly of Hungary
The National Assembly or Diet is the parliament of Hungary. The unicameral body consists of 386 members elected to 4-year terms. Election of members is based on a complex system involving both area and list election; parties must win at least 5% of the popular vote in order to enter list members...
.
Studies
Born in Budapest, Medgyessy studied theoretical economicsEconomics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
at the Corvinus University of Budapest
Corvinus University of Budapest
The Corvinus University of Budapest is one of the most prestigious Hungarian universities located in Budapest, Hungary. The university offers degrees in multiple disciplines, but it is characterised by its programmes in economics and management. -History:...
(then called Karl Marx University of Economic Sciences). He graduated in 1966, then returned to receive his doctorate. He is fluent in French
French language
French is a Romance language spoken as a first language in France, the Romandy region in Switzerland, Wallonia and Brussels in Belgium, Monaco, the regions of Quebec and Acadia in Canada, and by various communities elsewhere. Second-language speakers of French are distributed throughout many parts...
and Romanian
Romanian language
Romanian Romanian Romanian (or Daco-Romanian; obsolete spellings Rumanian, Roumanian; self-designation: română, limba română ("the Romanian language") or românește (lit. "in Romanian") is a Romance language spoken by around 24 to 28 million people, primarily in Romania and Moldova...
, and knowledgeable in the English
English language
English is a West Germanic language that arose in the Anglo-Saxon kingdoms of England and spread into what was to become south-east Scotland under the influence of the Anglian medieval kingdom of Northumbria...
and Russian
Russian language
Russian is a Slavic language used primarily in Russia, Belarus, Uzbekistan, Kazakhstan, Tajikistan and Kyrgyzstan. It is an unofficial but widely spoken language in Ukraine, Moldova, Latvia, Turkmenistan and Estonia and, to a lesser extent, the other countries that were once constituent republics...
languages.
Early career
Between 1966 and 1982, he held various senior positions in departments of the Ministry of Finance. In 1982, he became Deputy Minister of Finance, and in 1987, he became Minister of Finance.Between 1988 and 1990, Medgyessy was the Deputy Prime Minister for economic affairs, and between 1990 and 1996, he was CEO and Chairman of various Hungarian bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s. After Gyula Horn
Gyula Horn
Gyula Horn is a Hungarian politician and the third Prime Minister of the Republic of Hungary, from 1994–1998....
took over the Hungarian government, Medgyessy returned to his previous position as Minister of Finance, in 1996. After his term ended, he became Chairman of the Board of Directors of the Inter-Europa Bank, and Vice President of Atlasz Insurance Company; he held these positions from 1998 to 2001.
He received the Commander's Cross with a Star of the Order of Merit
Order of Merit
The Order of Merit is a British dynastic order recognising distinguished service in the armed forces, science, art, literature, or for the promotion of culture...
in 1998, and the highest French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
decoration, the Chevalier of the Legion of Honour
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...
in 2000.
Prime Minister of Hungary
The Hungarian Socialist PartyHungarian Socialist Party
The Hungarian Socialist Party describes itself as a social democratic party in Hungary. It is the partial successor of the communist Hungarian Socialist Workers' Party , which ruled Hungary between 1956 and 1989. The decision to declare the party a successor of the MSZMP was controversial, and...
(MSZP) nominated him as their candidate for prime minister. The party won the 2002 elections, and on May 27, 2002, the Hungarian Parliament elected Medgyessy as the Prime Minister of Hungary.
Magyar Nemzet
Magyar Nemzet
Magyar Nemzet is a major Hungarian newspaper. Its name literally means "Hungarian nation".-History:The original, moderate conservative daily was founded by Sándor Petheő in 1937. It fused with the other conservative daily Napi Magyarország in April 2000.The current newspaper is considered to be...
, a newspaper affiliated with the opposition party Fidesz
Fidesz – Hungarian Civic Union
The Fidesz – Hungarian Civic Union is a major conservative party in Hungary. At the 2010 election in Hungary, Fidesz-KDNP won a two-thirds majority of seats by gaining 52% of the votes, with Fidesz winning 227 seats and KDNP winning 36...
, revealed in 2002 that Medgyessy had acted as a counterespionage officer under the code name D-209 in the III./II. section of the then Ministry for Internal Affairs prior to 1989. Medgyessy admitted to this, stating that his duties lay in the defense of Hungary from the KGB
KGB
The KGB was the commonly used acronym for the . It was the national security agency of the Soviet Union from 1954 until 1991, and was the premier internal security, intelligence, and secret police organization during that time.The State Security Agency of the Republic of Belarus currently uses the...
and securing Hungary's International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
membership, which the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....
opposed. However, given the political climate of the time, this is highly controversial.
Under his prime ministership the 2003 Hungarian European Union referendum
Hungarian European Union membership referendum, 2003
The 2003 Hungarian European Union referendum took place on 12 April 2003 to decide whether Hungary should join the European Union . Over 80% of those who voted supported membership and Hungary joined the EU on 1 May 2004.-Background:...
took place on 12 April 2003 to decide whether Hungary should join the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
. All of the major political parties in Hungary, the trade unions, business oragnisations, churches and media supported membership of the EU. Medgyessy announced the result at a celebration on the banks of the Danube
Danube
The Danube is a river in the Central Europe and the Europe's second longest river after the Volga. It is classified as an international waterway....
telling them 'Allow me to officially announce that the Hungarian republic will be a member of the European Union.'
On August 19, 2004, due to impaired confidence in him by the coalition partner Alliance of Free Democrats
Alliance of Free Democrats
The Alliance of Free Democrats – Hungarian Liberal Party is a liberal party in Hungary, led since July 2010 by Viktor Szabadai . The SZDSZ is a member of the ELDR and of Liberal International...
(SZDSZ), he declared his resignation. His party, the MSZP accepted it on the same day, so in effect the government bowed out, which is without precedent in the history of Hungary's young democracy. The resignation took effect on August 25, and in accordance with the Hungarian Constitution he became "acting Prime Minister" for the next 30 days. In the meantime his successor, Ferenc Gyurcsány
Ferenc Gyurcsány
Ferenc Gyurcsány is a Hungarian politician. He was the sixth Prime Minister of Hungary from 2004 to 2009.He was nominated to take that position on 25 August 2004 by the Hungarian Socialist Party , after Péter Medgyessy resigned due to a conflict with the Socialist Party's coalition partner...
, acted on his behalf. Medgyessy stepped down as Prime Minister in August 2004 and was succeeded by Gyurcsány.
Controversies
He was one of the primary humour sources of the pressNews media
The news media are those elements of the mass media that focus on delivering news to the general public or a target public.These include print media , broadcast news , and more recently the Internet .-Etymology:A medium is a carrier of something...
because of his weak rhetoric
Rhetoric
Rhetoric is the art of discourse, an art that aims to improve the facility of speakers or writers who attempt to inform, persuade, or motivate particular audiences in specific situations. As a subject of formal study and a productive civic practice, rhetoric has played a central role in the Western...
al abilities and his style during his governance. From his mistakes and his bad draughtings a book was published with a title of Medgyessyizmusok (Medgyessyism, in analogy to Bushism
Bushism
Bushisms are unconventional words, phrases, pronunciations, malapropisms, and semantic or linguistic errors that have occurred in the public speaking of former President of the United States George W. Bush and, much less notably, of his father, George H. W. Bush. The term has become part of popular...
).
Referring to Hungarian exporters' interests, he opted to decrease the central value of the floating exchange rate
Floating exchange rate
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency....
range of the forint. Investors regarded this as an incomprehensible step and a flawed piece of economic policy and started selling forints and Hungarian government bond
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
s, which led to considerable interest rate hikes by the National Bank of Hungary.
Fulfilling the promise of "Change of welfare regime", the slogan of his campaign in the 2002 elections, the Medgyessy government increased wages of civil servants by 50%, and increased allowances for university students and pensioners, the latter group also receiving a one-time pension supplement. Economists criticised this move, calling it an irresponsible drain on the budget, amounting to nearly 190 billion Forints, in their opinion purely to increase the administration's popularity.
During his government, political attacks were launched against some independent senior civil servants who had been appointed by the previous Viktor Orbán
Viktor Orbán
Viktor Orbán is a Hungarian populist and conservative politician and current Prime Minister of Hungary...
cabinet. Court rulings subsequently established that the head of the Hungarian Energy Office and the chairman of the Hungarian Statistical Office were removed from their positions unconstitutionally and illegally. The chief of the Hungarian Financial Supervisory Authority was removed without legal challenge, however without any material basis related to his performance in office.
Life since government
After his resignation, he continued to serve as a Member of Parliament in the role of travelling Ambassador, "to make sure Hungary can become a successful member of the most important international alliances including the European Union", as he stated. He was called back from this position by Ferenc Gyurcsány in mid-2008, after he openly criticized the government in some of his interviews.Personal life
He is married to Katalin Csaplár. He has a daughter born in 1969 and a son born in 1970 from a previous marriage. His adopted child is Anita Tornóczky, a well-known anchorwoman in Hungary.Awards and merits
He received the Commander's Cross with a Star of the Hungarian Order of Merit in 1998, and the highest FrenchFrance
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
decoration, the Chevalier of the Legion of Honour
Légion d'honneur
The Legion of Honour, or in full the National Order of the Legion of Honour is a French order established by Napoleon Bonaparte, First Consul of the Consulat which succeeded to the First Republic, on 19 May 1802...
in 2000. In 2002 he received the Grand Cross of the Belgian Order of the Crown
Order of the Crown (Belgium)
The Order of the Crown is an Order of Belgium which was created on 15 October 1897 by King Leopold II in his capacity as ruler of the Congo Free State. The order was first intended to recognize heroic deeds and distinguished service achieved from service in the Congo Free State - many of which acts...
and the Gold and Silver Star of the Japanese Order of the Rising Sun
Order of the Rising Sun
The is a Japanese order, established in 1875 by Emperor Meiji of Japan. The Order was the first national decoration awarded by the Japanese Government, created on April 10, 1875 by decree of the Council of State. The badge features rays of sunlight from the rising sun...
, and in 2003, the Grand Cross of the Order of the Merit of Chile
Order of the Merit of Chile
The Order of the Merit of Chile is a Chilean military decoration and was created in 1929. Succeeding the Medal of the Merit, it was created during the term of the President Germán Riesco through the Minister of War decree No. 1350 on September 4, 1906...
and the Royal Norwegian Order of St. Olav. In 2004 he became a Grand Officer of the French Lggion of Honour and received the German Federal Cross of Merit.