Prime Minister Viktor Orbán - Photo: PMO

Orbán: Economic neutrality to bring about economic success

Economic neutrality will bring about economic success for Hungary, the prime minister said at an annual meeting in Kotcse, in southern Hungary, on Saturday. "A new global economy has emerged in the recent past, and we must adjust to it," Viktor Orbán told reporters before addressing the meeting, adding that Hungary needed a new economic policy. He said that at the meeting he would elaborate on what the new economic policy should be.

At the heart and the core of that economic policy should be an economic neutrality, Orbán said, adding that he firmly believed that neutrality would be key to the country’s economic success.

Answering a question, the prime minister said that in terms of its economic growth this year, Hungary is among the top third in Europe. “I am however not satisfied with this. I will only be if Hungary becomes first in that regard. Our target is a 3-5 percent growth rate which is not impossible to achieve in the coming year,” said Orbán.

On other topics, he said the repurchase of Budapest’s Liszt Ferenc international airport was a transaction of buying back a state asset. “The purchase of telco company Vodafone was a historic step, serving the goal that Hungary should have in its infocommunication sector a strong international company in state ownership. These have all been important and necessary steps,” the prime minister said.

“The country’s present state shows well that we were right on time to realise that instead of entering into any bloc, nurturing good relations with every important player of the complex world economy could be the solution to the Hungarian economy,” he said.

Asked about the dispute between the central bank and the government, Orbán said that “there would always be disputes about the economy because there are ones who have a certain vision about a good economy and there are others with a different vision”. “But there should however be no dispute between the central bank and the government”.

Asked about the situation of Hungary’s health care, Orbán said the country had 8,000 more doctors than in 2010. He noted a wage increase in the sector and an increase in the number of wards with air-conditioning each year. “We make progress every year in health care, too, but of course we have not yet finished the job.”

Asked about the situation of ruling Fidesz and the Hungarian right wing, Orbán, who is the leader of Fidesz, said his party had garnered 45 percent of the votes in the recent EP elections which “is the best result”. “We are Europe’s strongest political organisation,” he said, noting that “the next strongest party to follow had garnered 30 percent”.

Asked about how ethical he found that the state had purchased from his son-in-low an office compound in a deal worth 500 billion forints (EUR 1.2bn), Orbán said “what is ethical is that we observe the rules, every rule”.

As regards the issue of EU funding, Orbán said that “we have 12 billion euros on our account”. “We keep saying that there are no EU monies, but how the hell wouldn’t there be?”. “There are 12 billion euros waiting to be drawn into the Hungarian economy,” said Orbán, adding that “I am waiting for the Hungarian businesses to implement the tenders we called, that payments are made from the central budget and that we receive this money in post-financing. So the situation today is not that there is no money, but that the money is there, it is just that we cannot draw it in quickly enough,” he said.

Regarding the seven-year EU budget, the prime minister said that in using the funds, the fastest or second-fastest was Hungary out of the 27 member states, adding that “I would be careful even with criticism”. He said that the 12 billion euros of funding would last for many years to come.

Speaking of his leaked peace plan, Orbán said that if the Union had accepted any element of the proposal, there would be much less trouble today. “By the way, the peace mission has not ended. I have worked on it all summer, we are doing international work, there will be striking initiatives that will be presented as soon as this month”.

Speaking about foreign policy, the prime minister said that the essence of it was in building friendships and alliances. “The fact that two countries do not have good relations with each other does not preclude Hungary from being on good terms with both. It is in Hungary’s interest that the world economy does not fall apart into blocs, he said.

“Hungary can be on good terms at the same time with the Americans, Chinese, Japanese, Arabs and the European Union, we are a sovereign country,” Orbán said.

Regarding that a company, which can be tied to the Hungarian Export Promotion Agency (HEPA) office in Moscow, would have delivered radio telephones to Russia in breach of sanctions, Orbán said that Hungarian national security services had not indicated any problems.

Answering questions on the state of Hungary’s railways and hospitals, the prime minister said that his cabinet’s most effective minister was in charge of transport, who had introduced the national travel pass, and the state secretary responsible for health care had served previously as a hospital director himself.

Asked if he would sit down for a debate in Strasbourg with MEP Peter Magyar, who heads the opposition Tisza party, Orbán said that he himself was not a member of the European Parliament but would fulfil the obligation arising from Hungary filling the role of the presidency of the European Council and would be available to all representatives of the EP.

Illustration - Photo: wikipedia

Hungarian fuel prices favourable, says ministry

Petrol prices at the pump in Hungary were under the average in neighbouring countries in the month of August, data compiled from the EU Weekly Oil Bulletin by the Central Statistics Office (KSH) and published on Friday show, the National Economy Ministry said in a statement.

The price of petrol in Hungary averaged 605/litre during the month, HUF 7 under the average in neighbouring countries. The price of diesel stood at HUF 611/litre, level with the average in neighbouring countries.

The price of petrol was lower in August compared to July by HUF 7/litre and diesel prices fell HUF 10/litre.

Hungary’s government earlier said it would intervene if motor fuel prices exceeded the average in neighbouring countries.

The National Economy Ministry reiterated it was now tracking monthly, rather than weekly, fuel price levels, in line with a recommendation by the Hungarian Petroleum Association (MASZ) and the Independent Petrol Stations Association.

Illustration - Photo: police.hu

Fire at Miskolctapolca cave spa extinguished

A fire burning down the entire roof structure of a medical bloc at the Miskoltapolca thermal spa complex has been extinguished, a deputy spokeswoman of the regional disaster management authority said on Saturday. Nobody has been injured.

The 800sqm building’s roof caught fire on Friday evening, Zsuzsanna Rinyu told MTI. Firefighters arrived after 7.30pm at the scene where the fire broke out in the 2nd floor of the aquatherapy department and spread further to the roof, she said. The rescue operation was carried out with ten vehicles and a team of 40 firefighters and was concluded after midnight, Rinyu added. “It managed to prevent the fire’s spreading to the nearby forest”.

Meanwhile, the new, incoming mayor of county seat Miskolc told a press conference on Saturday that the city would turn to the central government for help since the case “concerns lost tourism revenues and people’s jobs”. Jozsef Toth-Szantai said the next step to follow was to conduct an investigation to establish the cause of the fire and the damage caused.

Illustration - Photo: Wikipedia

Thai Festival celebrates unique culture

The annual Thai Festival organised by the Royal Thai Embassy in Budapest will be held this year in the Hungarian National Museum on Sunday, September15 from 11am to 7pm.

The embassy pledges a memorable experience, offering various activities in which local communities and visitors can immerse themselves with a deep dive into the uniquely rich and vibrant Thai culture.

Highlights of the full day of events will be:

  • Traditional Thai Dance Performances: Witness the elegance of traditional Thai dancers from Kalasin College of Dramatic Arts in the east of the country as they perform in an authentic manner.
  • Cooking Demonstrations: Engage with Thailand’s culinary master during the preparation of some of the country’s most beloved dishes.
  • Culinary Delights: Explore a variety of mouth-watering dishes prepared by selected Thai restaurants in Budapest, from savoury curries to sweet desserts.
  • Authentic Thai Massage: Experience instant relaxation on-site, offering a chance to unwind and experience traditional Thai wellness practices.
  • Prizes and Giveaways: Attendees can participate in a lucky draw for a chance to win plane tickets to Thailand from Turkish Airlines.

Additional activities include quiz shows and egg-fishing for prizes, and admission is free.

Illustration - Photo: Wikipedia

University warns against using online diabetes products for slimming

Antidiabetic drugs purchased online and taken with the aim of losing weight could pose serious health risks, researchers at Pecs University (PTE) said on Friday.
7. September 2024 7:25

In its statement, the university said there was an increased demand for Ozempic injections in Hungary, while the drug “often cannot reach diabetic patients who would need it the most.” Obtaining the drug from the black market poses “huge health risks”, they added.

In their research, the experts made trial purchases on popular websites and found that nearly every other semiglutide product on offer was available from illegal pharmacies and could impact the users’ health through contamination or an overdose.

Quoting from a study published in the US periodical JAMA Network Open, the purity of online products was far below expected levels, while they could contain up to 40 percent more active ingredient than recommended, posing risks of an overdose.

Illustration - Photo: Wikipedia

Opus Jazz Club gets prestigious European award

The Opus Jazz Club operating the building of the Budapest Music Centre (BMC) has been granted the prestigious professional Award for Adventurous Programming from the Europe Jazz Network (EJN), the BMC said on Friday.

The EJN award granted for the 13th time this year recognises European festival and concert venues offering forward-thinking and diverse jazz programmes to audiences, the statement said.

The jury said “the Budapest Music Center (BMC) is adventurous in its commitment both to domestic and international artists, in a programme which is stylistically diverse, and fearless in its allegiance to music as an art form.”

“BMC is a musician’s dream: a renovated 120 years old building converted into a true house of music … we believe their commitment also embodies the freedom of expression as a democratic right, which is inspirational in promoting music beyond borders and beyond the limitations of day-to-day politics,” it added.

Prime Minister Viktor Orbán - Photo: PMO

Orbán: EU project of peace

The European Union is a peace project, and there is a war in Europe, Prime Minister Viktor Orbán said at the 50th Cernobbio Forum in northern Italy on Friday, adding that war and migration are factors to be considered. Waiting for the emergence of a peace plan acceptable for both parties in the war in Ukraine will not bring peace, Orbán said.

Few wars had been fought without communication between the warring parties, a key factor to ending the war, he said. Communication must be maintained with both countries, he said.

Orbán said brokering peace started with communication and led to a peace plan through a ceasefire.

He also talked about his travels to Kyiv, Moscow, Beijing and the US over the summer. He said he had started on a “peace mission” to “understand what are the chances of peace”. “And my conclusion was … that there is no intention on either side to have peace. Both leaders said … that time is on their side.”

The next step should be “creating an international context that expresses … that the world wanted a ceasefire as soon as possible,” Orbán said. Without that, it would be extremely difficult to convince the warring parties of moving towards peace, he said.

Speaking about Hungary’s presidency of the Council of the EU, Orbán said their priority was restoring the European Union’s competitiveness, adding that “forcing” a political union among member states would only make that goal more difficult.

He called for a review of the European Green Deal, which he said was going against the interests of European companies. The EU has recently imposed tariffs on Chinese electric vehicles, which German car makers had said went against their interests, he said.

Orbán said red tape should also be cut and the number of bureaucrats and bureaucratic procedures reduced. Investments must be brought back to Europe, rather than having European companies invest in North America or China where the business environment was better, he said.

Orbán called for further strengthening ties in the united European market but “forgetting” a political union. The latter would be a mortal wound to EU competitiveness, he said.

While a political union was a potential “disintegrating factor”, further integrating defence capabilities would be crucial, he said.

Orbán said political challenges were not about general European values enshrined in the treaties. The issues of war, migration, gender and a work-based society, however, were re-shaping the European political arena, he said. He cautioned against a political union among states with starkly different views on those matters because that could “disintegrate the European Union”.

Migration was another “disintegrating factor” in the EU, Orbán said, with member states battling various difficulties that couldn’t be handled with a unified approach. Migration should be decided on a national level, by the citizens and leaders of member states, he said.

If the EU forced member states to join forces in issues they disagreed on, that could disintegrate the EU, Orbán said.

Orbán asked why this was necessary and said it was a serious problem that many migrants had been allowed to enter Italy and several other countries, as these countries were now facing difficulties about how they can live together with them.

Orbán said Hungary’s problem was not how to live together with migrants but how not to let them into the country. These were different issues and the two different difficulties could not be handled with the same political tools, he added.

Countries unwilling to follow the EU policy on migration should be allowed to opt out, rather than forcing them to cooperate, risking that the conflicts then would “disintegrate” the bloc, he said.

Photo: wikipedia

EU affairs minister: Hungary EU presidency represents change

Hungary's presidency of the Council of the European Union aims to represent and promote change in the EU, thereby also working in the interest of Hungary's success, Janos Boka, the EU affairs minister, said at the plenary session of the 62nd Itinerant Conference of Economists in Nyiregyhaza, in north-eastern Hungary, on Friday.

“The European Union is changing, and it should,” the minister said, arguing that as an EU member Hungary had a vested interest in the bloc’s success.

Boka said there was broad support for EU membership in Hungary just as there had been 20 years ago when the country joined the bloc, adding that there was no alternative to EU membership.

He said Hungary was bound to Europe both culturally and historically. “Our place is in Europe and in the EU,” he said, adding that Europeanness formed an integral part of modern Hungarian identity.

Hungary’s security, he said, could only be guaranteed if the country was part of a strong defence community, one of whose pillars was NATO and the other the EU.

He said that with Hungary’s open and export-oriented economy, it was “inconceivable” to achieve growth and development goals without an unlimited access to the common market.

Boka said there were no disagreements on Hungary’s EU membership within the government. EU membership, he added, did not mean “the end of history”, because as the world continues to change, so must relations.

Turning to the priorities of the Hungarian presidency, he mentioned the EU’s competitiveness. He said that whereas in 1992 the EU had accounted for more than 21 percent of the global economy, by 2022 this had shrunk to 14.8 percent. He said that to restore competitiveness it was critical to address demographic challenges, including guaranteeing a skilled workforce in the most important sectors, and ensuring the European economy’s access to raw materials and affordable energy. Europe’s capital market, he said, lagged behind that of the United States in terms of development, and this led to a competitive disadvantage.

Boka called the EU’s post-pandemic Resilience and Recovery Facility (RRF) the “biggest failure of recent years”, arguing that its implementation had been too drawn out and slow, and its administrative burdens were too high. The implementation of the green transition, he added, could also be considered a failure because it was still impossible to tell what kinds of financial resources the “road to climate neutrality” required and what its economic effects would be.

The Hungarian presidency considers it a priority to adopt a new competitiveness pact focused on industrial transition, the management of labour and demographic problems, investment in innovation and skills as well as the renewal of funding, Boka said. He said the EU’s competitiveness would be a main topic at the Nov 8 informal summit of EU leaders in Budapest.

Meanwhile, Boka underlined the importance of developing the EU’s cohesion policy in a way that guarantees that it is capable of helping less developed regions catch up with the rest of the bloc.

He noted that the EU is set to begin planning its next multi-year budget during the Hungarian presidency. He said plans were to shift financing from traditional policies to new policies that boost competitiveness. He said this would also mean that the EU would finance policies that favour member states with a higher level of development, which would leave fewer resources available in terms of real value, and access to them would be even more closely linked to the fulfilment of the political criteria set by the European Commission.

The minister said it was also important for the Hungarian presidency to achieve “tangible results” on EU enlargement.

Foreign minister Peter Szijjarto – Photo: Facebook

Szijjarto calls for sincere communication, end to ‘deception’, on EU enlargement

Northern and western European, and Baltic states, should "finally put an end to deception" and talk sincerely about the issue of European Union enlargement, Foreign Minister Peter Szijjarto said on Friday.
6. September 2024 20:09

The ministry cited Szijjarto telling a joint press conference with North Macedonian counterpart Timcho Mucunski that both countries attached great significance to bilateral cooperation, especially in the current period characterised by severe challenges facing the continent, when “it appears the EU has not found the correct responses to difficulties”.

“Had we found them, Europe would not be ailing,” he said. “We believe the current situation is proof that it is high time for the European Union to return to politics based on common sense and to accept that Europe cannot be stable if there is no stability in its direct neighbourhood, therefore dialogue must be enhanced with the EU’s neighbours,” he added.

“And they must finally understand in Brussels and in the western and eastern Europe, and Baltic capitals that the European Union indeed needs the Western Balkans, and it is not an exaggeration to say that the EU now needs the Western Balkans more than the other way round,” he said.

The EU needs new energy which can come from the Western Balkans, because the ambitions and rapid development of states in the region could generate the impetus that the bloc currently lacks, he added.

Szijjarto said there was “huge hypocrisy” in the EU when it came to enlargement, with everybody making supportive public statements but behind closed doors, the majority of people forming a disapproving position.

Had it not been the case, North Macedonia would not be in the underserved situation of being a candidate country for nineteen years, and accession talks still not starting, he said.

Szijjarto said the government would make every effort for an intergovernmental conference to be organised with North Macedonia before the end of the Hungarian EU presidency which would enable opening the first chapters of accession talks.

“Additionally, we are calling on the European Commission to start payments due for the development of North Macedonia under the arrangements of the Reform and Growth Facility for the Western Balkans,” he said.

He added that the government in Skopje had fulfilled all the necessary conditions and the transfer of EU resources “are not always without political prejudice, and not always done in line with objective conditions”.

He expressed thanks to Western Balkan leaders for a joint letter they sent to support Oliver Varhelyi, asking for the European Commissioner for Neighbourhood and Enlargement to be allowed to continue his work.

He said bilateral trade between North Macedonia and Hungary grew five-fold in recent years, adding that “Hungary’s government will continue to support domestic companies to carry out investments in North Macedonia in strategic areas”.

Szijjarto said the sides had confirmed their commitment to stop illegal migration which posed a fundamental threat to the security of the Western Balkans.

Szijjarto slams Baltic states’ ‘ridiculous and deceitful’ actions over Hungary’s National Card scheme

Foreign Minister Peter Szijjarto on Friday slammed what he called “ridiculous and deceitful” actions by the Baltic countries when it came to the expansion of Hungary’s National Card programme, adding that “this propaganda tsunami has also found fertile ground in Brussels”.

The number of Russian citizens in Hungary is just 0.7 percent of the more than one million Russians in the European Union, Szijjarto said in response to a question at a joint press conference with his North Macedonian counterpart, according to a ministry statement.

“And in Germany — if I recall correctly — there’s 300,000,” he said. “In the Baltic countries, which were the loudest throughout the summer, there’s a total of 140,000, 20 times as many as in Hungary. And then the Baltic states launch a huge propaganda tsunami on us with the help of the European liberal media on how dangerous this is.”

Szijjarto said he had debated the matter at the last meeting of the Foreign Affairs Council where his Lithuanian counterpart had talked about a “dramatic increase in the number of Belarusian citizens travelling with a Hungarian visa”. He said the truth, however, was that the Hungarian embassy in Minsk has issued fewer visas so far this year than at this point last year.

Meanwhile, Szijjarto said, Germany, Italy and Russia had “radically” increased the number of visas issued to Belarusians.

“So what they’re doing is ridiculous. Ridiculous and deceitful,” Szijjarto said. “It’s typical of the current Baltic governments, so we ask that they stop with these lies. It’s clear, however, that this has found fertile ground in Brussels, because the European Commission is now asking for all kinds of details and asking all sorts of questions, but the point is that when they’re confronted with reality, they’re not that happy anymore.”

Commenting on the Ukrainian president’s request to be allowed to use Western weapons to strike deep within Russian territory, Szijjarto said such measures were all dangerous and posed a risk of escalation. He said the focus should finally be on diplomacy over weapons.

He said Hungary is the only EU and NATO member that has not and will not supply weapons to Ukraine.

Szijjarto said Hungary’s peace mission was “a constant one”, and expressed hope that political debates in Europe would soon reach a point where those who talk about peace “aren’t immediately branded Russian spies”.

Illustration - Photo: Flickr/TaxRebate.org.uk

Hungary issues JPY 39.6 billion of samurai bonds

Hungary issued JPY 39.6bn of samurai bonds denominated in Japanese yen on September 5, Friday, by issuing two series with different maturities, the Government Debt Management Agency (AKK) said.

AKK sold JPY 1.3bn of a ten-year green bond at a spread of 1.48pc over the JPY TONA mid-swap rate.

It also sold JPY 38.3bn of a conventional three-year bond at a spread of 1.1pc over mid-swaps.

The lead organisers for the issues were Mitsubishi UFJ Morgan Stanley Securities, Mizuho Securities, Nomura Securities and SMBC Nikko Securities.

The proceeds from the green series will be used to finance and refinance certain green expenditures of the central budget, and the proceeds from the other series will be used for general financing purposes of the central budget.

The capital and interest payments from the Japanese Yen bonds will be swapped into euros by AKK in accordance with debt management rules.

Moody’s assigned the three-year and ten-year yen-denominated bonds issued by Hungary a “Baa2” rating, with stable outlook, the same as the rating it assigned to Hungary’s long-term sovereign debt, Moody’s said in London on Friday. The ratings are supported by a diversified economy with robust growth outlook, and the authorities’ commitment to gradual fiscal consolidation which should help to reduce the comparatively high government debt burden over the coming five years, Moody’s said.