Viktor Orbán's meeting with foreign journalists

Dátum: 2002-10-14 13:53:00, eredeti URL: http://archiv.fidesz.hu/index.php?Cikk=4975
KCMDB-be feltöltve: 2024-05-04 17:49:03.931823, Feltöltő: fidesz_hu_scraper_v2

Former Prime Minister Viktor Orbán invited Budapest-based journalists of European Union countries on Wednesday, 2 October for a background discussion where he answered questions related to Hungary's EU-accession, the economic policy of the current Hungarian government, the issue of land-ownership and the Benefit Law.

On the conditions set by Fidesz to the amendment of the Constitution concerning EU-accession, Viktor Orbán emphasized that he had never suggested that Hungary should not enter the European Union. The EU, as well as NATO, means a safe harbour for the country after centuries of driftage. Instead, Hungary must choose between a successful and an unsuccessful EU-integration, as living standards and competitiveness will not automatically increase following our accession. All the more so, as the European Union will only provide about a quarter of the direct agricultural payments to the farmers of the new member states than to current members, and we have no solid information on the share of the new members in the structural and cohesion funds, either. The Hungarian government therefore has to take measures in order to increase the competitiveness of small and medium-sized enterprises and farmers. If it happens otherwise, EU-accession will cause widespread disillusionment which will have dreadful psychological consequences. A disillusionment has already happened right after the fall of communism, when the unavoidable negative economic consequences disappointed many Hungarians about the changing of the regime as a whole.

As far as the schedule of the constitutional amendment is concerned, Viktor Orbán expressed his confidence about an eventual compromise between government and opposition. There are numerous indications that this will happen. First, there is agreement on some of the methods needed to enforce Hungary's competitiveness, as on the need to lower interest rates and to continue capital injection. Second, the opposition does not want to curb the government's room for manoeuvre: if the cabinet finds ways to suport small and medium-sized enterprises other than those taken by the Széchenyi Plan, that might easily find a consent with the opposition. Third, the government parties cannot reject issues that enjoy the support the vast majority of the Hungarian public. This is well shown by the fact that the aspects put forward by Fidesz, after the first fury of refusal, found their way into the document signed by the parliamentary parties and the government on 21 September. Viktor Orbán pointed out: "What we can see now is that the government is coming up with one idea after the other which are getting closer to the fulfillment of our conditions", citing a recent government motion on agricultural loans and the restart of the support of small enterprises as examples.

Moving on to matters of issues of more immediate economic concern, the former prime minister called attention to the fact that the previous government's economic policy, based on the triad of education, labour and family, might be up to potential criticism by different political philisophies, but it was definitely a coherent concept different elements of which supplemented each other, producing a clear vision of the future. For instance, the Orbán-government always raised wages by enforcing structural reforms in the sphere concerned (police, army, civil service). The minimal wage, having been on the same level with unemployment benefit, had to be raised radically in order to restore the virtue of labour.

The criticism of Fidesz vis-a-vis the economic policy of the current government is that there is no clear concept behind the day-to-day decisions. Viktor Orbán pointed out: "My understanding of the economy is that it is paralysed and one element of the reason is that there is no clear vision about what will happen in the next year in the Hungarian economy and how the state would like to behave in the economy." Government expeditures are rising, but the cabinet has also promised the European Union officially that this year's budget deficit, expected at around 7,2-7,5 % of the GDP, would be lowered to 4,5 percent next year, which is impossible and "like a bomb" to an economy. As a result, many analysts, even economists close to the current government coalition, are predicting the possiblity of a financial chaos by next February. Redistribution packages are being carried out without structural reforms, investments functioning as the internal engines of the economy are not being financed, a recent example of which is the cutback in projected highway constructions. Day-to-day decisions make the future unpredictable for entrepreneurs.

Answering to questions related to the agriculture, Viktor Orbán explained that, as member states are not allowed to discriminate against citizens of other member states after accession, EU-nationals will of course be able to buy land in Hungary, under the agreement with the European Union, with certain conditions. The center-right government applied the so-called Danish model of regulating the acquisition of land property, which was based on a system of priorities with regard to option rights. Under this regulation, had someone wanted to sell his land, potential buyers could make the offer in the following order:

1) family farmer, if his farm was immediately neigbouring the piece of land to be sold,

2) a family member from the (vendor's) household,

3) a resident neighbour (in case he was not a family farmer),

4) a resident village-dweller,

5) the Hungarian State (via the National Farmland Fund),

6) landleasers.

The conformity of this regulation could not be questioned, as the law differentiated between resident and non-resident, rather than Hungarian and foreign, potential applicants. The Medgyessy-government, however, amended the Law on Arable Land in July in a way that under the current legislation, land-leasers (business associations) have the first option to buy a piece of land offered for purchase, greatly facilitating for foreigners the access to land property in Hungary. Viktor Orbán confirmed that next year, along the referendums on the EU and the media, there will also be a referendum on the re-amendment of the Law on Farmland in order to restore the pre-July situation in land acquisition rights. The questions to be placed on the land referendum sheets have already been approved by the National Election Board.

As far as the Law on Benefits to Hungarians living in neighbouring countries is concerned, the former prime minister pointed out that technical modifications under the recommendations of the Venice Commission are legitimate, but such modifications cannot touch upon the substance of the Law. The problem is that Fidesz and the Hungarian organisations abroad are not at all convinced that the new government will indeed limit the modifications to the Venice Committee recommendations. The position of Fidesz in this respect is clear: only the MÁÉRT (Permanent Hungarian Council, composed of the representatives of the Hungarian government, parliamentary parties and the Hungarian organisations abroad) has the legitimacy to approve the amendment of the Law. If the Hungarians abroad accept the amendment, so will Fidesz. There is a fear amongst the Hungarians in the neighbouring countries that the Hungarian government does not want to finance the Law and would let some of its provisions die. During the takeover meeting late May, Viktor Orbán made it clear to the new prime minister that the center-right opposition considers the Benefit Law a breaking point issue. Mr. Medgyessy promised to continue the implementation of the law at all costs.

Budapest, 9 October 2002