Bernadett Szabo / Reuters

Balint Nogradi holds his son Shalom Doveber before the Sabbath in their home in Budapest November 30, 2012.

BUDAPEST - A week after a leader of Hungary's far-right Jobbik party called for lists of prominent Jews to be drawn up to protect national security, Janos Fonagy stepped forward.

"My mother and father were Jewish, and so am I, whether you like it or not," the state secretary of the Development Ministry told parliament, explaining he did not have dual citizenship with Israel and was not religious.

"I cannot choose, I was born into this. But you can choose, and you have chosen this path," he said, addressing Jobbik deputies. "Bear history's judgment."

It is only relatively recently that Hungary's Jews have celebrated their identity as openly as they did when Europe's largest synagogue was built in Budapest in the 1850s.

Now they are determined not to allow a political climate in which they have to defend that identity or even suppress it.

More than 500,000 Hungarian Jews were killed in the Holocaust after Hungary sided with the Nazis in World War Two and those left in Budapest were forced into two ghettos.

When the Soviet Red Army moved in and liberated the ghettos in 1945 about 100,000 Jews remained, living reminders of a collaboration with fascism many Hungarians wanted to forget.

"Even 15 years ago, using 'Jewish' as a brand required quite some bravery," said Vera Vadas, the director of the Jewish Summer Festival, launched in 1998. "Now the word just describes our culture and it draws artists and audiences alike."

From an initial crowd of about 3,000, the number of visitors at the festival was around 120,000 this year, filling the cobblestone alleys and courtyards of the city wall to wall.

The biggest of the two wartime ghettos is now a thriving Jewish quarter, a year-round highlight on Budapest's tourist map with the huge Dohany street synagogue -- the model for New York's Central Synagogue -- at its heart.

Around it are more synagogues, museums, businesses, schools and restaurants, and sometimes a mix of those things, such as a Talmud class that is taught regularly at one of the famous Budapest "ruin pubs" - run-down buildings converted into bars.

Rabbi Zoltan Radnoti, the young leader of a small, modern synagogue in southwestern Budapest, said his generation was the first to be confident of its heritage after their traumatized grandparents taught their children to play it down.

"My parents' generation, the one born immediately after the war, was protected so much they never got to experience their Jewishness," said Radnoti. "They assimilated almost completely."

"Now, my children take their Jewishness naturally, they have no doubts about their roots. They are kids who live in Hungary, speak Hungarian and follow the Jewish faith. The vast majority of young Jewish parents can and do choose this tradition."

Bernadett Szabo / Reuters

Eliezer Nogradi holds challah before the Sabbath in their home in Budapest November 30, 2012.

Besides religious freedom, the end of Communism in 1989 also brought a freedom of speech and politics that quickly gave birth to openly anti-Semitic political forces.

The Jobbik party, the third biggest in parliament, has used anti-semitic slurs to boost its standing before elections in 2014, drawing international scorn.

The strongest yet greeted last month's call by Marton Gyongyosi, who runs Jobbik's foreign policy cabinet, for Jewish members of government and parliament to be listed in the wake of Israel's recent military campaign to stop rocket fire from Gaza.

"I think such a conflict makes it timely to tally up people of Jewish ancestry who live here, especially in the Hungarian parliament and the Hungarian government, who, indeed, pose a national security risk to Hungary," he told parliament.

Hungary's centre-right government condemned the remarks, for which Gyongyosi later apologized, and the U.S. Embassy in Budapest called them "outrageous".

Although anti-Semitism has not yet led to serious physical confrontations, hate crimes have included desecration of Jewish cemeteries and a verbal attack in Budapest on 90-year-old former Chief Rabbi Joseph Schweitzer.

Andras Heisler, a leader of Mazsihisz, the Association of Jewish Communes in Hungary, said Jobbik was a danger to Hungary.

"I think this is real racism and inciting hatred. A bad economic situation, recession, usually flames tempers and this is the case now as well."

Laden with debt and hit hard by the wider debt crisis in Europe, the country is struggling to end recession and sort out its finances, and a series of austerity measures have increased tensions on the street.

Hungary's political elite showed a rare gesture of unity at a big rally on December 2, where ruling and opposition party leaders expressed their disdain for Jobbik's politics.

So far, polls suggest Jobbik has retained its voter base. Among young voters its support is nearly 20 percent, making it the strongest party in the age group below 30, according to a Republikon Institute poll earlier this year.

But unlike its hugely successful anti-Roma rhetoric, anti-Semitism may end up working against Jobbik on the long run, Republikon Institute Director Csaba Toth told Reuters, because it will put off potential coalition partners.

"Anti-Semitism gets far fewer votes," he said. 

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Janos Marjai / EPA

Thousands of protesters turned out on Sunday to denounce demands made by far-right legislator Marton Gyongyosi to make a list of Jews who posed a national security risk.

BUDAPEST -- Around 10,000 Hungarians protested on Sunday against the far-right opposition Jobbik party, after one of its lawmakers triggered outrage and memories of Nazism by calling for lists of Jews to be drawn up.

The rally outside Budapest's parliament brought together leaders from governing and opposition parties in an unprecedented show of unity in the country's deeply divided political scene.

"We cannot allow things which belong to the darkest pages of history books to repeat themselves," Antal Rogan, head of the ruling Fidesz party's parliamentary group, told demonstrators who waved national flags and demanded the resignation of Jobbik MP Marton Gyongyosi.

On Monday Gyongyosi, one of Jobbik's 44 lawmakers in the 386-seat parliament, said after a debate on fighting in the Gaza Strip it would be "timely" to tally up people of Jewish ancestry in Hungary who posed a national security risk.

He later apologized and said his remarks had been misunderstood, adding that he was referring only to Hungarians with Israeli passports in the government and parliament. But he said he would not resign.

'National security risk': Far-right leader pushes Hungary to draw up list of Jews

In 2010, Jobbik became the third-biggest party in parliament on a campaign vilifying the Roma minority and attracting voters frustrated by a deepening economic crisis.  Jobbik was registered as a party in 2003 and won increasing influence from 2006 onwards.

Janos Marjai / AP

A protester dons a yellow star on his coat as thousands of people turned out to condemn comments made by far-right lawmaker Marton Gyongyosi.

Former prime minister Gordon Bajnai of the centrist Egyutt (Together) 2014 movement said Gyongyosi's remarks revealed the true nature of Jobbik and parties should join forces against the far right.

"If we want a new era of normality in politics in Hungary then this is the number one moral order: one must team up with everyone against the Nazis, but must not team up with the Nazis not even for power," Bajnai told the rally.

'Fascism is a virus'
The party has retained support in the recession-hit central European country and some analysts said it could hold the balance of power between centre-right Fidesz and the left-wing opposition in the next elections in 2014.

"Fascism is a virus and Jobbik is the one spreading this virus," said Attila Mesterhazy, leader of the biggest opposition party, the Socialists. He called on Prime Minister Viktor Orban to speak up in parliament on Monday to condemn Jobbik.

Jobbik dismissed the protest as "political alarmism" in a statement on Sunday, adding that its opponents' comments reflected desperation over the rise of the party's support.

The government condemned Gyongyosi's remarks in a statement on Tuesday, pledging to do "everything" to suppress extremist, racist and anti-Semitic voices.

Want a European Union passport? Just invest $322,000 in Hungary

The protesters, who gathered in wintry temperatures, demanded immediate action against the far right and welcomed the rare manifestation of unity from politicians at the rally.

Businessman Gyorgy Sarkozy, 43, said: "It's very important to be here in person, all of us, to protest against what's happening in Hungary now. This is the shame of the world, this fascist movement.

"Perhaps now we will see such joining of forces which will not only restrain their (Jobbik's) rhetoric but also this whole Nazi party. This is a Nazi party."

About 500,000 to 600,000 Hungarian Jews were killed in the Holocaust, according to a memorial centre in Budapest. Some survivors reached Israel. Some 100,000 Jews now live in Hungary.

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BUDAPEST, Hungary -- A Hungarian far-right politician urged the government to draw up a list of Jews who pose a "national security risk", stirring outrage among Jewish leaders who saw echoes of fascist policies that led to the Holocaust.

Marton Gyongyosi, a leader of Hungary's third-strongest political party Jobbik, said the list was necessary because of heightened tensions following the brief conflict in Gaza and should include members of parliament.

Attila Kovacs / EPA

Deputy leader of Hungary's far-right Jobbik party Marton Gyongyosi delivers a speech in Budapest on Tuesday.

Opponents have condemned frequent anti-Semitic slurs and tough rhetoric against the Roma minority by Gyongyosi's party as populist point scoring ahead of elections in 2014.

Jobbik has never called publicly for lists of Jews.

"I am a Holocaust survivor," said Gusztav Zoltai, executive director of the Hungarian Jewish Congregations' Association. "For people like me this generates raw fear, even though it is clear that this only serves political ends. This is the shame of Europe, the shame of the world."

Between 500,000 and 600,000 Hungarian Jews died in the Holocaust, according to the Holocaust Memorial Center in Budapest. According to some accounts, one in three Jews killed in Auschwitz were Hungarian nationals.

Gyongyosi's call came after Foreign Ministry State Secretary Zsolt Nemeth said Budapest favored a peaceful solution to the Israeli-Palestinian conflict as benefiting both Israelis with Hungarian ancestry, Hungarian Jews and Palestinians in Hungary.

Gyongyosi, who leads Jobbik's foreign policy cabinet, told Parliament: "I know how many people with Hungarian ancestry live in Israel, and how many Israeli Jews live in Hungary," according to a video posted on Jobbik's website late on Monday.

"I think such a conflict makes it timely to tally up people of Jewish ancestry who live here, especially in the Hungarian Parliament and the Hungarian government, who, indeed, pose a national security risk to Hungary."

Gyongyosi apologizes
Gyongyosi, 35, is the son of a diplomat who grew up mostly in the Middle East and Asia -- Egypt, Iraq, Afghanistan and India -- and whose office is decorated by Iranian and Turkish souvenirs. He graduated with a degree in business and political science from Trinity College in Dublin in 2000.

He worked for four years at the Dublin office of KPMG, then returned to Budapest in 2005. He has been active in Jobbik since 2006 and became their representative in parliament in 2010.

Want a European Union passport? Just invest $322,000 in Hungary

The government condemned the remarks.

"The government strictly rejects extremist, racist, anti-Semitic voices of any kind and does everything to suppress such voices," the government spokesman's office said.

Laszlo Kover, the Speaker of parliament, who is from the ruling Fidesz party, also issued a statement on Tuesday in which he called for a tightening of house rules that would allow a sanctioning of such behavior.

Gyongyosi tried to play down his comments on Tuesday, saying he was referring to citizens with dual Israeli-Hungarian citizenship.

"I apologize to my Jewish compatriots for my declarations that could be misunderstood," he said on Jobbik's website.

He later told a news conference that he would not resign and considered the matter "closed," national news agency MTI reported.

King maker?
Jobbik's anti-Semitic discourse often evokes a centuries-old blood libel - the accusation that Jews used Christians' blood in religious rituals.

"Jobbik has moved from representing medieval superstition (of the blood libel) to openly Nazi ideologies," wrote Slomo Koves, chief rabbi of the Unified Hungarian Jewish Congregation.

Jobbik registered as a political party in 2003, and gained increasing influence as it radicalized gradually, vilifying Jews and the country's 700,000 Roma.

The group gained notoriety after founding the Hungarian Guard, an unarmed vigilante group reminiscent of World War Two-era far-right groups. It entered Parliament at the 2010 elections and holds 44 of 386 seats.

The center-right government of Prime Minister Viktor Orban has struggled to pull Hungary out of recession as many European countries suffer from an economic crisis.

Orban's Fidesz has lost more than a million voters since 2010, even though it is still the strongest political force.

More than half of Hungary's electorate is undecided and having retained its voter base, some analysts say Jobbik could hold the balance of power in the 2014 elections between Fidesz and the fragmented left-wing opposition.

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Attila Kisbenedek / AFP - Getty Images, file

Fireworks burst over the Danube River in Budapest on August 20, 2012 during a celebration marking Hungary's national day.

BUDAPEST - Lawmakers in indebted European Union member Hungary are waving the prospect of a passport at well-heeled foreign investors.

Proposed legislation listed on parliament's website would grant permanent residency and ultimately Hungarian citizenship to outsiders who buy at least 250,000 euros ($322,600) worth of special government bonds.

Hungarian passport holders are entitled to live and work throughout the European Union.

The move, backed by the ruling government party, is designed to attract new investors, especially from China.

Hungary has billions of euros worth of foreign currency debt maturing in the next few years and has explored a variety of ways to refinance.

Chinese investors targeted
Its plans include selling euro-denominated bonds to domestic buyers and trying to attract major new investors from Asia. Selling debt in western bond markets would happen only after tricky talks with international lenders wrap up, the government has said.

Budapest has asked for a financing backstop from the EU and the International Monetary Fund, but talks are dragging on and analysts see only a 50 percent chance of a deal.

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The proposed legislation calls for the debt management office to issue special "residency bonds" to foreigners. Holders of at least a quarter of a million euros' worth of the bonds would get preferential immigration treatment.

"The goal of the modification is to create the institution of 'investor residency' in Hungary," the lawmakers who put forth the legislation wrote in their proposal.

"The proposal ties gaining citizenship to buying bonds because it intends to aid state financing this way," they wrote. "Other investments from those applying for such residency could boost the real estate, retail and investment markets."

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One of the authors of the proposal said Chinese investors were specifically targeted.

"The Chinese have articulated repeatedly that we should help their Hungarian investments," ruling party lawmaker Mihaly Babak told the daily Nepszabadsag. "If someone is a Hungarian citizen they have more (investment) opportunities."

"The condition of a preferential process is the purchase of 250,000 euros worth of bonds with a five year maturity ... We can attract capital from the so-called Third World this way and also finance reducing state debt." 

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