Karoly Grosz's government was keen to control the growth of political dialogue. On 13 June, roundtable discussions began between the governing Hungarian Socialist Workers Party, the opposition and labour unions. Talks continued for three months.

In a public television debate a few days after negotiations started, Imre Pozsgay who had gained more influence following a Politburo reshuffle, said the party now accepted the principle of a democratic electoral system with free elections and multiple parties. He also said the party would be prepared to go into a coalition if it didn't win a majority in the 1990 elections.

As the torturous negotiations continued in government, real change was seen on the street. The bodies of Imre Nagy, a reformer and hero of the crushed 1956 uprising, and several of his colleagues were exhumed and re-buried in a massive state funeral. Two hundred thousand people turned out to remember their martyrs and cheer speakers like Viktor Orban, who said to rousing applause:

"If we can trust our souls and strength, we can put an end to the communist dictatorship; if we are determined enough we can force the party to submit itself to free elections; and if we do not lose sight of the ideals of 1956, then we will be able to elect a government that will start immediate negotiations for the swift withdrawal of Russian troops."