The Government has taken care of Hungary’s power needs and low electricity prices for a period of sixty years by virtue of the Paks atomic power station project, János Lázár, the Minister heading the Prime Minister’s Office said at the press conference Governmentinfo 81 which he held jointly with Government Spokesperson Zoltán Kovács. The Minister described the approval by the European Commission of the funding of Paks II as the greatest economic diplomacy achievement of the past 30 years.
The Minister heading the Prime Minister’s Office indicated that, in consequence, all legal obstacles on the part of the EU have been removed as far as the project is concerned, and the physical preparations and the first phases of the construction works may begin in 2017 and 2018.
In the Minister’s evaluation, they managed to put together a team which represented Hungary’s interests outstandingly well on one of the most important competition law issues of 2017. At the same time, the courage manifested by Prime Minister Viktor Orbán and the fact that the Government does not confine itself to mere words, but implements the country’s plans and sees its decisions through have also greatly contributed to this success.
Upon reiterating the story of the project, Mr Lázár mentioned among the most important goals that the Paks atomic power station should remain in state ownership and the company should generate electricity as cheaply as possible. As one of the explanations, he cited the reduction of the country’s dependence on imported energy, adding: in the absence of domestically generated electricity, more foreign gas would have to be purchased. He described the enlargement of the atomic power station as one of the most important guarantees of the reduction of household utility charges, and pointed out that while a Hungarian now pays HUF 36-38 for electricity per kilowatt, the Germans pay HUF 90.
He told the press that, based on the findings of the investigation which began on 23 November 2013, the Russian technology fully conforms to the relevant EU and international safety requirements, and the staff of nuclear specialists, too, are outstanding. The project complies with the EU procurement regulations, Hungary had the right to conclude the contract, the procurement of fuel complies with the legal rules and technical specifications, public access to the terms of the contracts and the classification of documents were likewise found to be satisfactory, and the state aid is compatible with the relevant system of norms, the Minister listed.
He also stressed that the Commission’s position, too, renders an account of the recovery of the project, and it is worth the Government’s while to build the new blocks. As one of the reasons, he mentioned the rise in the demand for electricity, while he also highlighted that the project greatly contributes to the attainment of the relevant climate targets.
He remarked at the same time: the Rothschild Group’s earlier preparatory financial document, too, established that Hungary has concluded a deal which will recover the costs: the costs of fuel, operations, maintenance, waste management and the ultimate decommissioning of the blocks, and will additionally generate a 3 to 4 per cent profit.
Mr Lázár indicated that the European Commission also provided for the profits, and this will have an impact on the operation of the Hungarian energy sector as well. They agreed on three points, he continued: the profits generated by the Paks II project company can only be used for investments or can only be disbursed to the State; Paks II, its legal successor and subsidiaries must be legally and organisationally separated from the Magyar Villamos Művek Group and all its activities; minimum 30 per cent of the power generated by the company must be sold on the Hungarian electricity exchange, and the rest must be sold at objective, transparent and discrimination-free auctions.
The Minister stressed repeatedly that one of the most important guarantees of the recovery of the project is that Hungary concluded a fixed-price contract, and a turnkey atomic power station will be completed under its terms.
He further told the press that the European Commission also took account of the improvement in the country’s financial indicators. Hungary is now in the position to consider what would be the best arrangement for drawing on the Russian credit facility, while the Government will additionally also consider the costs and financial implications of the scenario of not drawing on the credit facility and what other options there may be for financing the project.
The Minister said: Austria indicated that they wish to take part in the licensing procedure, and others, too, may call the necessity of the project into question. Any such measure will, however, have no delaying effect. Hungary keeps the EU informed about the project on an ongoing basis, and is not expecting any initiatives or attacks that would affect the fate of the project on its merits, he added.
At the same time, Mr Lázár described Paks as a weighty economic issue, rather than a political one, and found it regrettable that a few small parties picked it as their flagship issue upon the commencement of their election campaigns. The Government is always ready to engage in reasonable economic debates, and bears in mind as its top priority how much 4 million Hungarian households and industry players have to pay for electricity, he pointed out. In his evaluation, the people re-elected the Government in 2014 in awareness of the concepts regarding the project, and it transpired at the forums of the 40 localities in the vicinity that the vast majority of local communities support the enlargement.
Law on legal border closure must be defended
Prime Minister Viktor Orbán set the goal that the law passed by Parliament with regard to the tightening of the legal border closure must be defended under any circumstances, Mr Lázár said. The Minister highlighted: the Government believes that Parliament passed a legislative package that is fully compatible with European law. He added that, in the Cabinet’s view, security is more important than guaranteeing the free movement of illegal immigrants.
He also said that the law meets the expectations of Germany and Austria as the two countries regularly levelled criticisms on account of the fact that migrants in the hundreds and thousands continue to arrive in their territories from the Balkans route. As a result, this legislative package also helps Germany and Austria, he stated.
At the same time, he confirmed that the second border fence, the construction of which is already in progress, must be completed by 1 May.
In answer to a question concerning the approval by the EU of the regime of so-called systematic border checks, the Minister said: Hungary voted for this on the condition that the application of the regime can be suspended in the event of the development of backlogs of traffic at the border.
Donald Tusk may be President of European Council
Mr Lázár also spoke about the upcoming election of the President of the European Council, in the context of which he said: as the Hungarian governing parties are members of the European People’s Party, they support this party family’s nomination.
Prime Minister Viktor Orbán recently attempted to strike a compromise between Poland and the members of the European Council, but these attempts failed to yield a result. In consequence, the Hungarian governing parties adhere to the obligation that stems from their membership of the People’s Party, even if they understand the Poles’ problem with the nomination of the EC presidential candidate, Mr Lázár said, with reference to the fact that the Polish Government recently announced unexpectedly: instead of Donald Tusk, the current President of the European Council, they nominate Member of the European Parliament Jacek Saryusz-Wolski as the head of the body. The largest European party family, the European People’s Party supports Donald Tusk’s candidacy.
Government to hand over tapes to historical archives
The Minister heading the Prime Minister’s Office further announced that, based on the proposal of the Committee of National Remembrance, the Government will hand over the data stored on secret service magnetic tapes to the Historical Archives of State Security Services.
The classified data generated by the Ministry of Interior before the change of regime and the data storage media managed by the Constitution Protection Office must be handed over to the archives by the end of the first half of the year, at the latest, the Minister informed the press. He also said that the revision of the classification of the data contents will begin thereafter.
Government to consult consumers and traders
Mr Lázár said that Hungary wishes to take action against double standards in quality, and would seek to discuss how to achieve mandatory customer information about the differences that exist with respect to the quality of a given product. With reference to the reduction of environmental burdens, they would also raise the issue of what compensation traders covering thousands of square metres with asphalt for the purposes of parking spaces could provide for the creation of green areas with a view to alleviating the damage caused.
He further reported that they are seeking to change the rules regarding the placement of products, and similar to other EU Member States, they would prescribe the availability of a certain number of sales personnel for each specified unit of vending space.
The Minister also mentioned among the issues to be raised the free time and weekend employment of workers. As he said, they have not considered tax policy criteria, and the purpose of their concepts is to protect the interests of consumers and workers, rather than to levy punitive taxes.
In answer to a question, Mr Lázár pointed out: the option of terminating the free bus services of supermarkets has not even emerged, and they are not expecting the changes to cause prices to rise. In answer to another question, he said that the rules equally apply to all traders.
29 measles cases known so far
Mr Lázár informed the press about the measles situation. With reference to Wednesday afternoon data, he said: 29 patients suspected of being infected with measles have been reported nation-wide to date, involving both health care workers and other individuals. The patients are being treated, and the necessary vaccine and medicine are available.
The disease first struck at the Makó Hospital, it is to be presumed on account of the treatment of a patient from Romania, he confirmed.
Regarding the number of infected patients, new data is expected to be released on Thursday afternoon, the Minister added. He also said that all the infected patients had been previously vaccinated against the disease.
Grants for top researchers
He further reported that the Strategic Cabinet has approved a programme for excellent researchers who are among the best world-wide in their respective fields of expertise. The programme will cost HUF 9 billion up to 2022, and HUF 3 billion annually thereafter.
He additionally told the press that, based on the recommendation of Government Commissioner for cycling and active relaxation Máriusz Révész, they have approved the programme of child and youth walking camps, for the purposes of which they will provide an allocation of HUF 172 million.
Regarding the issue of nine-grade elementary school, Mr Lázár said in answer to a question: if the public education roundtable supports the idea and a consensus is reached within the profession, it may be launched in the spring of 2019, at the earliest, with annual introduction in every first grade thereafter. He added at the same time that the Government has not decided on its introduction.
According to press reports, Mr Lázár commented on the protests of judges against Tünde Handó, the President of the National Office for the Judiciary – as his personal view – as follows: Tünde Handó must be fully supported in her action to be taken against corrupt judges as it poses a threat to the people’s faith in the justice system if the suspicion of corruption emerges in connection with a judge.
At the beginning of the press conference, Mr Lázár expressed his condolences on behalf of the Government to the relatives of the Nobel Prize winner chemist György Oláh, who died aged 90. In his words, the community of Hungarians lost in his person a great patriot, and one of the most excellent members of Hungarian science.
Forest areas may increase
The Minister also informed the press at his press conference that the Government has approved the Ministry of Agriculture’s proposal on the new forest legislation, the main purpose of which is to protect forests and to increase „wooded” areas from the current 20 per cent to 27 per cent.
He further reported that the Cabinet has approved HUF 7.8 billion for the National Chamber of Agriculture as additional grants designed to supplement funds made available by the European Union which will facilitate communication between the members and the Chamber headquarters and the organisation of training.
On the issue of agriculture, Mr Lázár said that they wish to reinforce the production of agricultural machinery, and the purpose of the strategy approved to this end is to help Hungary return to the vanguard of the manufacture and distribution of agricultural machinery. He further urged the increased mechanisation of the agricultural sector.
In answer to a question concerning the cost of the new Puskás Stadium, Mr Lázár said: „what nonsense whoever said” about the costs „is all very well and interesting”, but when they published the public procurement tender of the stadium, it featured HUF 180 billion, and the contract will feature a sum of HUF 190 billion, as the cheapest bid.
In answer to another question, he rendered an account of the Government’s long-term plan, based on which county-ranked cities operating local public transport companies must be offered the opportunity of requesting the State to take these companies over.
Regarding the case of the M4 motorway, Mr Lázár said: the bid of Közgép was disqualified from the tender because it was unrealistic. The person in charge of the assessment of the public procurement found no fewer than seven items, based on which the submitted bid was found to be unfeasible. Engineers „took the view that the price quoted by Közgép was unrealistically low”, he said.
The Minister also indicated in answer to a question that he will invite the Ambassador of the Netherlands and the management of Heineken to review the situation related to the trade mark dispute in Romania, and he will visit the brewery in Transylvania in two weeks’ time.
(Cabinet Office of the Prime Minister)
