“The European Commission (EC) cannot impose either the compulsory resettlement quota or the fine on those who reject it”, János Lázár said during his usual Thursday press conference.

According to the Minister of the Prime Minister’s Office, the EC’s proposal is a form of coercion, is completely contradictory to the European Union’s Basic Treaty, goes against the will of the people of Europe and does not express the political will of many of its Member States. “How can a proposal with which a determinative number of those involved do not agree conform to European ideals?”, he asked, adding that the approach according to which those who do not agree are not showing solidarity was unacceptable. Hungary remains prepared to provide assistance to those who need protection and regards it as important to participate in European aid efforts, he highlighted.

Mr. Lázár also pointed out that the fact that there are now fewer immigrants arriving in Austria and Germany is thanks to the fact that Hungary upheld the Schengen treaty and protected the European Union’s external borders. The Minister suggested that Member States take note of Hungary’s ten-point plan for reinforcing the Schengen System. At the press conference, the Head of the Prime Minister’s Office referred to the referendum on the compulsory resettlement quota, which is expected to be held in September or early October, as one of the most important questions of the past 25 years. According to Mr. Lázár, the referendum is about the country’s sovereignty; about the fact that Brussels cannot decide instead of us who should live in the country.

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In reply to a question concerning whether the amendment to the Constitution proposed by the Jobbik party could be a solution, Mr. Lázár said: “The focus is on the referendum, we live in a representative democracy, which means that with regard to the most important issues, and accordingly also with regard to issues of sovereignty, the decision lies with the voters. Including it in the Fundamental Law is not in itself sufficient to combat the compulsory resettlement quota, because if there is a conflict between the Constitution and the Basic Treaty of the European Union, then the latter is right”, he explained.

In reply to another question, the Minister explained: “With relation to the referendum we need to provide information, not launch a political campaign, because sovereignty isn’t a party matter but a fundamental issue affecting Hungary”. The cabinet has not discussed the details yet, he added.

Some tobacco products could be banned before the end of the year

Announcing a decision by the Government, Mr. Lázár told the press that certain tobacco products could be banned in the near future, perhaps before the end of the year, and uniform packaging will also be introduced. The Minster cited protecting public health and reducing the number of smokers as the main reasons for the move, which has been made possible by the fact that Hungary and the United Kingdom have won a law suit against Philip Morris at the European Court of Justice.

Uniform packaging is aimed at curbing advertising, he said, while the proposed ban will affect products that contain fruit, spices or medicinal plant additives and/or flavourings. Banned products will include menthol cigarettes and capsule tobacco products.

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The Minister was also asked about the reorganisation of Ministry background institutions. In his reply, Mr. Lázár explained that the move is expected to result in a 32 billion forint (EUR 101.5M) reduction in expenditure in next year’s budget. He also said that staff numbers at government departments would be reduced by four thousand, three thousand of whom would be transferred to district offices, where a total of around 20 thousand people will be employed, including former background institution employees. Mr. Lázár also told the press that no final decision has been made as yet with regard to golden handshakes; the cabinet was considering whether to support employees who will be leaving or private sector employers in the interests of ensuring those affected find new employment.

In reply to a question, Mr. Lázár also said that significant pay increases could be expected within the healthcare sector and negotiations are approaching an agreement, with a sum already put aside for this purpose in the budget.

The Minister told the press that a major national programme would be launched built on the solidarity and remembrance of the country’s citizens to mark the sixtieth anniversary of the 1956 Revolution. The event is still being planned, he indicated, pointing out that Government Commissioner Mária Schmidt was coordinating the year of remembrance for the 1956 Revolution and War of Independence. Last year saw the large-scale renovation of Lot 301 (the resting place of many Hungarian killed during and following the Revolution), and this year a visitor’s centre would be established there at a cost of one billion forints, Mr. Lázár added.

He also told the press that the Prime Minister was expected to visit Salgótarján and also Szeged next week within the framework of the Modern Cities Programme.

The goal is to improve the quality of public transport

Mr. Lázár announced that the goal of the National Transport Strategy, which is expected to be adopted soon, is to improve the quality of public transport. The economic activities of the past six years make it possible to put Hungarian bus manufacturing back on the international bus manufacturing map, the Minister said, explaining that there now exists a level of Hungarian bus manufacturing capacity that could assure the enforcement of the interests of Hungarian industry if the right changes and procurements are realised within the public transport sector.

Via the Strategy, which was developed by the Ministry for National Economy, Hungary is seeking to rebuild the national automotive industry, and primarily the bus manufacturing industry, within the upcoming period. Bus manufacturing could be one of the flagships of national industry, Mr. Lázár said detailing the government’s goals and indicating that the Cabinet would discuss the Strategy in two weeks’ time. The Transport Strategy also counts on the realisation of sensible cooperation with public transport service providers such as local governments, the City of Budapest and state-owned companies, which will result in the strengthening of national industry.

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In reply to a question from the press, Mr. Lázár also spoke about Budapest’s plans to procure new buses and stated that the Government was not dictating, but would like cooperation so that the organisers of public transport take into account national industry when they purchase new buses. “We are not forcing anything onto anyone; we request and we offer cooperation”, he said. “It is possible to develop a construction that helps the renovation of Metro Line 3 while also favouring national industry”, he said, adding that “no responsible Hungarian mayor would reject a request from the Government to at least give national industry a chance. National bus manufacturing should be given a chance by Budapest”, he said.

The Minister was also asked about the Alstom Commission set up by the General Assembly of Budapest, to which he replied: “we are expecting the work of the Commission to shed light on international crime and the Government is offering its assistance to both the Municipality of Budapest and the investigatory authorities”. The Government will also be examining how the Hungarian railway system has developed in recent years to see how it will be spending the one thousand billion forints (EUR 3.17bn) available for Hungary’s railways, the Minister announced.

In reply to questions from the press, Mr. Lázár said the Government was counting on 8-10 bus manufacturers who would have no trouble manufacturing one thousand buses-a-year with government support. 6500 buses are involved in public transport in Hungary, in Budapest and at regional Volán service providers, and these need replacing within the next few years, he pointed out.

The goal of education restructuring is the improvement of quality

Minister Lázár specified the improvement of quality as the goal of restructuring within the education system. With relation to the reorganisation of the vocational training system, he said the Government’s goal was for students leaving vocational secondary schools with leaving certificates to have the choice between starting work or continuing their studies. The Government would like the Hungarian school system to be one of Europe’s best, Mr. Lázár said. Children need competitive knowledge and this requires the restructuring of the currently inadequate school system, he added. Mr. Lázár confirmed that the National Curriculum would be reviewed by autumn 2018.

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The Government is expected to support the reorganisation of state institution maintenance in such a way that the relevant Ministry would supervise a so-called Klebelsberg education centre, under which 57 district education centres would be established, he said, adding that the district centres would practice maintenance rights and operate the schools; district education centres will be independent budgetary institutions with their own budgets. The sphere of competence of school head teachers is also expected to change. According to one proposal, hiring and discharging employees would fall under the sphere of competence of the head of the district education centre, while employer’s rights wold be practices by the school’s head teacher, who would also have a certain level of responsibility for school finances, Mr. Lázár said.

The Minister also indicated that vocational schools would become vocational secondary schools and vocational secondary schools would become vocational high schools. He again cited improving quality as the reason for the restructuring, as well as the fact that before starting work students currently have to study an extra year in adult education (OKJ) after finishing vocational secondary school. According to the Minister, the goal is for students to receive a proper high school leaving certificate after completing four years at a vocational high school in addition to learning a profession. The restructuring was preceded by three years of preparation, he noted, adding that following the restructuring 20 percent of children would study in vocational secondary schools, 35-40 percent in vocational high schools and 30-35 percent in traditional high schools.

Separate “Mezőhegyes Act” in preparation

The Minister announced that the Government was planning to introduce a separate act to regulate the tasks of the national stud farm in Mezőhegyes. Goals set include the passing on of agricultural traditions, the further strengthening of international quality plant production and animal husbandry, the development of the area of research (which includes seed breeding) and the continuation of traditional Hungarian horse farming and the stud farm itself. The law will denote a 10 hectare area for this purpose, he added.

The Minister also stated that the Government had ordered the Hungarian Development Bank to develop a home  modernisation programme with a budget of 110 billion forints (EUR 349M) to provide interest-free repayable loans to natural persons, building societies and condominiums for energy modernisation. In addition, the Government is prepared to provide a loan programme to help home owners who would like to modernise their properties, he added.

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The Government is planning to introduce a separate act to regulate the tasks of the stud farm in Mezőhegyes.

Mr. Lázár told reporters that the Cabinet had discussed the proposed free trade agreement between the EU and the United States. According to the Government, negotiations must be held concerning the agreement, but thoroughness is more important than urgency and the document is inadmissible without the approval of national parliaments, he added.

He also mentioned that the Cabinet had listened to a report from György Waberer, who was appointed Prime Ministerial Commissioner in July 2015 to facilitate the development of the Hungarian logistics sector by providing professional advice. The Cabinet has decided on a new one-year programme aimed, amongst others, at further improving the quality of driver training and providing assistance in view of liberalisation.

The Minister was also asked about the loan provided to the owner of the TV2 independent television station by Eximbank. Mr. Lázár said he was sure the bank had developed business policies that guaranteed legality and the recoverability of the loans provided. “If you’re called Andy Vajna, does that mean you can’t get a loan?”, he asked.

With regard to the restructuring of the cafeteria system for employee benefits, Mr. Lázár said the Government would respect the decision of the European Court of Justice and modify the system, but the precise changes were as yet unknown. He indicated that in his opinion the SZÉP Card and Erzsébet Card programmes should be preserved.

In reply to a question, Mr. Lázár said that enterprises that were caught being involved in a cartel would continue to be excluded from participating in public procurement tenders, but that it would now be possible to grant exemption from the regulation. He justified the change in legislation by the fact that the old regulation would mean there wasn’t a financial institution in Hungary that could help with the distribution of EU funding. Also in reply to a question, the Minister told reporters that the Cabinet could decide on the fate of Budapest’s Southern (Déli) railway station before the end of May and that the Station would only be closed if traffic could be transferred to other locations, for instance via the further development of Kelenföld Station.

During the press conference, on behalf of the Government János Lázár congratulated the Hungarian team for winning the continental final of the prestigious Bocuse d’Or gastronomic competition. According to the Minister, the Hungarian team had achieved an unparalleled feat and “lifted Hungary back to its rightful place in European gastroculture”.

He also indicated that there would again be a government conference in August.

(Cabinet Office of the Prime Minister/MTI)