News update from Nepal, June 9, 2005 Court’s orders. But political hardliners such as Ram Chandra Paudel, Bal Krishna Khand and others and human rights activist Krishna Pahadi are still in jail. The government is likely to increase the budget for the Royal Nepalese Army(RNA). The Ministry of Defense(MoD) is currently working on a three-year budget and de­manded Rs. 18 billion for the fiscal year 2005/06. The hike in the defense budget is sought to finance the RNA’s plan to recruit 13,000 more persons to add to its current strength of 85,000 and buy helicopters and military equipment. Political parties and civil society, however, fear that fighting insurgency militarily can weaken democracy. Oppositional Politics The Nepali Congress(NC) President G. P Koirala dubbed the“royal address as a cri­tique and advise to the political parties.” NC spokesman Arjun Narshing KC accused the King of“systematically dismantling all the pillars of democracy with a view to establish­ing an authoritarian rule.” The CPN-UML leader Jhala Nath Khanal asserted,“The alli­ance would not support the King’s move which aims at finding a military solution to the Maoist insurgency.” On May 8 leaders of the seven-party alliance(NC, CPN-UML, NC(Democratic), Peo­ple’s Front Nepal(PFN), Nepal Workers and Peasants’ Party(NeWPP), Nepal Sadbha­vana Party(NSP-Anand Devi) and United Left Front) announced a six-point“common minimum program to end the king’s direct rule and to restore democracy and people’s sovereignty.” Pointing out the absence of parliament as the major cause behind the cur­rent crisis, the common program promises to fight collectively to reinstate the dissolved House of Representatives through people’s movement. The common program involves: a) Reinstatement of the House of Representatives to activate the constitutional process, b) formation of an all-party government, c) management of the armed conflict and the attainment of durable peace, d) adoption of all democratic options including constituent assembly elections to settle the Maoist insurgency, e) commitment to a forward-looking reform agenda including the provision of a referendum on the constitution to decide on crucial national issues, and f) reform in the constitution to patch up all loopholes for au­tocracy. NC president Koirala said,“We believe the restructuring of the state and formulation of the constitution through a constituent assembly is the only viable option to mainstream the Maoists.” The Joint Movement Coordinating Committee(JMCC) of these parties or­ganized a series of protest programs beginning May 21, and made public a code of con­duct to maintain discipline and non-violence in the course of the movement. While CPN­UML General-Secretary Madhav Kumar Nepal preferred a national debate as to “whether or not democracy and monarchy can move hand in hand in Nepal,” Pari Thapa, Vice-Chairman of People’s Front Nepal(PFN) said,“The joint agitation of politi­cal parties should aim at restructuring the state and break the centralization of power on traditional forces.” On May 16 India, the EU and the UK welcomed the common program announced by the seven-party alliance to address Nepal’s political crisis. The government expressed