OMRI DAILY DIGEST
No. 220, 10 November 1995

SLOVAK OPPOSITION CRITICIZES LANGUAGE BILL. The Hungarian Civic Party on
9 November expressed concern about preparations for a demonstration
outside the Slovak parliament on 15 November, when the controversial
language bill is scheduled for discussion, Pravda reported. The
demonstration is allegedly being organized by the government coalition
in order to influence voting on the bill. Also on 9 November, the
Democratic Union stressed its opposition to the bill. DU Deputy Chairman
Ludovit Cernak, who previously served as chairman of the Slovak National
Party, told reporters that DU deputies are not against a state language
law; however, he criticized the current version, saying that under its
provisions, the popular Slovak opera singer Peter Dvorsky would be
prosecuted if he were to sing an aria in Italian. -- Sharon Fisher

HUNGARIAN PREMIER NOMINATES NEW LABOR MINISTER. Gyula Horn has nominated
Peter Kiss, administrative state secretary at the Prime Minister's
Office and a fellow member of Socialist Party, as labor minister,
Hungarian newspapers reported on 9 November. If his appointment is
approved by the parliament, Kiss will replace Magda Kovacs Kosa, who
resigned last month because of differences of opinion over the
government's social welfare policy (see next item). Kiss is closely
linked to the Socialist Party's left wing, which has become increasingly
critical of government economic policy for neglecting leftist values and
the party's election platform. -- Zsofia Szilagyi

HUNGARIAN CABINET ACCEPTS FIRST VERSION OF MODERNIZATION PROGRAM. The
cabinet on 9 November accepted the first version of a modernization
program that includes preparations for meeting criteria for EU and NATO
accession and a three-year economic plan, Hungarian media reported the
next day. The cabinet also approved a legal harmonization program
stipulating regulations for accounting, insurance, competition, consumer
protection, and the banking system. Further, it decided that employers
will have to pay full sick benefit for the first 15 days of an
employee's illness. The original proposal was for employers to pay full
benefits for 25 days. Former Labor Minister Kosa--fearing that if this
proposal were implemented, employers would want to dismiss workers who
were frequently sick--had advocated 15 days only. She resigned over this
issue, and many other ministers threatened to follow suit if the
government were not able to agree on a social welfare policy. -- Zsofia
Szilagyi

NEW TRADE UNIONS HEAD IN HUNGARY. Laszlo Sandor on 9 November was
elected president of the National Federation of Trade Unions (MSZOSZ),
Hungarian media reported. Formerly vice president of the union, Sandor
said the MSZOSZ will be somewhat different but noted that since all
decisions are made collectively, there are unlikely to be any radical
changes. Sandor replaces Sandor Nagy, who resigned last month because of
differences with the government over leftist values and internal
conflicts within MSZOSZ (see OMRI Daily Digest, 19 October, 1995).
-- Zsofia Szilagyi

ROMANIA DENIES BANNING HUNGARIAN TV CHANNEL. Romania's National Audio-
Visual Council has denied banning broadcasts of the Hungarian satellite
program Duna TV on cable network (see OMRI Daily Digest, 8 November),
Romanian media reported on 9-10 November. The controversial decision
aroused strong criticism among Romania's Hungarian minority. -- Matyas
Szabo

[As of 12:00 CET]

Compiled by Jan Cleave


OMRI ECONOMIC DIGEST
VOL. 1, NO. 2, 9 NOVEMBER 1995

150 BILLION FORINTS IN "HOT" FUNDS. More than 150 billion forints in
speculative funds have flown into the Hungarian economy during the past
year, Nepszabadsag quoted financial executives as saying on 3 November.
They compare the situation to the recent Mexican crisis, saying that
deposits can be quickly withdrawn at the first sign of trouble.
Nepszabadsag stressed that a new form of speculation has appeared on
Hungarian financial markets, spawned by the high interest rates on
forint deposits and the sliding devaluation of the forint. Those who
change loans drawn in foreign currency into forints and invest them in
state securities reap a 6-7% yield. That return is unusually high since
the pre-announced crawling peg devaluation of the forint has eliminated
exchange rate risk. -- Zsofia Szilagyi

GO-AHEAD FOR HUNGARIAN ENERGY PRIVATIZATION. Most Hungarian
parliamentary parties support privatizing the energy sector, Hungarian
media reported on 1 November. Five parties favor going ahead with such
privatization, while the Smallholders' Party, which had initiated the
parliamentary debate on the topic, opposes doing so. Privatization has
generally been picking up speed again after an 18-month standstill, and
the Finance Ministry expects the process to be completed by the end of
1997. However, the government is unlikely to reach its target of 150
billion forints ($1.15 billion) for privatization revenues in 1995. --
Zsofia Szilagyi

Compiled by Michael Wyzan

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