The European Commission has closed the infringement procedure brought against Hungary in connection with the refurbishment of the Paks atomic power station in the context of public procurements, János Lázár, the Minister heading the Prime Minister’s Office said at the press conference Governmentinfo 70 which he held jointly with Government Spokesperson Zoltán Kovács.
Brussels instituted the proceedings two years ago, and the latest decision means that the Commission no longer disputes Hungary’s right to come to an agreement with Russia regarding the power station construction project and a related credit facility, he said.
Pursuant to the decision of the European Commission, Hungary did not infringe the Public Procurement Directive through the conclusion of the agreement, he said, continuing: the Hungarian Government had the right to enter into an agreement which partially disregards the Public Procurement Directive with regard to the fixed technical specifications. Those who claimed otherwise – such as Benedek Jávor, Member of the European Parliament for Párbeszéd – „have suffered a spectacular defeat”, Mr Lázár said, who took the view that Benedek Jávor, who has filed dozens of reports against Hungary in the case since 2014, should consider whether he should continue his political career.
Based on this, the Minister believes there is a realistic chance that the construction works related to capacity maintenance may begin in 2017-18. He added that Hungary agreed to apply the EU’s public procurement norms in 55 per cent of the value of the project. He further said: the investigation regarding prohibited state aid is also about to be brought to a conclusion. The Government will receive the relevant documents next week, as expected.
Mr Lázár also spoke about the economic issues discussed at the Wednesday cabinet meeting, including the raising of the minimum wage, in the context of which Prime Minister Viktor Orbán asked the Minister for National Economy „to go all the way to the wall”. The Government is unable to compromise on the figures of the planned minimum wage increase, he said, remarking that they are currently looking into the impact of the increase on pensions.
In answer to a question concerning the fiscal effects of the tax reduction and wage increase package, he said: the budget need not necessarily be adjusted on account of the figures of the increase.
He further informed the press that as of December, the Government will provide repayable grants from an allocation of HUF 120 billion – against 10 per cent own resources – for the modernisation of buildings constructed with industrial technologies and the properties of private individuals.
Major debate expected on quotas
A major debate is expected as to whether the EU should pursue the Juncker path of the mandatory quotas or the flexible resettlement quotas suggested by the Slovak Presidency, the Minister heading the Prime Minister’s Office said.
Mr Lázár confirmed: Hungary rejects the mandatory mechanism, but is at this point in time not in a winning position. Those who approve of the mandatory quotas are in the majority, he remarked.
While the national consultation and the referendum are important milestones, he indicated: the amendment of the Fundamental Law would have made the situation absolutely clear. He further told the press that the Constitutional Court will consider ombudsman László Székely’s submission next week in which he raised issues of constitutionality in connection with resettlement. The commissioner raised the question in his submission, inter alia, whether Hungary has the obligation to permit the relocation of large groups of asylum-seekers residing in another Member State lawfully, in response to the EU’s orders, without having yielded its relevant powers to the EU, while he also concludes that the proposed measure gives rise to major human rights concerns, he said.
The Minister further pointed out that Hungary is ready to review the EU’s cohesion policy. At the same time, in his view, the attempts to exert pressure with threats regarding the withdrawal of funds „have lost some of their intensity” since the US presidential elections. As he said, these funds do not stem from solidarity, but from economic cooperation, given that Hungary has resigned a number of its economic privileges through its accession to the EU.
Border protection to gain momentum
Mr Lázár also told the press that, due to the uncertainty of the agreement between Turkey and the EU, border protection is gaining in significance: there is now a general consensus that the protection of the borders must be reinforced on the Balkans route. He further remarked that, to the Government’s greatest regret, a border crossing point has been created at Hegyeshalom „in the form of a bag which the Austrian border guards stuck on top of a pole”. They are, however, engaged in daily communication with the Austrian Ministers concerned in order to ensure that the reinstated border controls should not disturb the daily border crossing of Hungarians working in Austria.
The Minister also announced that there will be a joint Serbian-Hungarian cabinet meeting on Monday, one of the main topics of which will be illegal immigration. He further informed the press that the Government will hold an extraordinary meeting on 6-7 December where, in preparation for the 2018 elections, they will review the tasks of the next eighteen months and will evaluate the past six years.
Mr Lázár mentioned among the Government’s decisions that they have approved the raising of the defence personnel by 1,400 warrant officers, while the Defence Minister will table a proposal in December with respect to the new ten-year development plan of the defence forces for the period between 2018 and 2028.
Airport and centre of Budapest to be connected by railway service
Mr Lázár announced: the Government has decided on the railway connection of the Liszt Ferenc International Airport and Western Railway Station. According to his information, there are multiple alternatives for the service: the Government favours the construction of a new 29-kilometre railway line, which will also be the new route for the Budapest-Cegléd-Szolnok railway service. The project will cost approximately HUF 100 billion, trains would serve the line every 20 minutes, and the scheduled service time would be 18 to 20 minutes between the centre and the airport, he said.
He also told the press that the new Mezőhegyes national stud farm and model farm will be set up next Tuesday. A new Board of Directors and Supervisory Board will be established. The Government will allocate HUF 1 billion for operations, and another HUF 5 billion for the development of the stud farm and experimental farm.
The Minister further announced that there will be 83 government windows which will also cater for the administration of tax affairs. He indicated: the government window construction programme will end in Szigetszentmiklós in February, and the facility will be inaugurated by the Prime Minister. He said that some 3,200 local governments will receive grants worth HUF 3.5 billion for the drafting of their new municipal manuals.
Mr Lázár told the press: the economic cabinet decided to declare the facilities operated during the communist dictatorship as internment camps, forced labour camps and prisoner of war camps as memorial sites, and to refurbish them. This will involve the full reconstruction of the Recsk National Memorial Park, and the sites at Kistarcsa and Cegléd, while the Hortobágy memorial site is the subject-matter of further consideration, he said.
The head of the Prime Minister’s Office also reported that Hungarian houses will be built in Transcarpathia which will serve to play a cultural and educational role, and pay supplements will be provided for public education and municipality workers working in health care and education as well as for members of the media in Transcarpathia.
Roundtable discussions to be launched regarding costs and rules of driving
Mr Lázár said at the press conference Governmentinfo that the Government will launch a series of roundtable discussions with the interest representations concerned regarding driving, its administrative burdens, and the costs of the initial placement on the road and operation of cars. He highlighted that the costs of the initial placement on the road of a new car are, for instance, higher in Hungary than in the rest of the Visegrád countries (V4). The Minister indicated that the creation of a new Highway Code should also be considered.
He said in explanation for the recall of the leadership of the Rural Development Agency that they want to make the assessment of proposals swifter and more flexible.
Regarding the digital conferences held in Budapest in May and on Thursday, the Minister said that the idea came from German businessman Klaus Mangold, who is a paid advisor of the Government. Hungary would like to become a leading country within the V4 Group as regards the issue of the digital industry, and therefore this topic will be a priority issue in the governance of the next few years, he stated.
Several journalists asked him about news reports that Günther Oettinger, European Commissioner for Digital Economy and Society, arrived in Budapest in the spring on board Klaus Mangold’s plane. In his answer, he pointed out: Prime Minister Viktor Orbán asked the Commissioner for a meeting, and the Prime Minister asked Klaus Mangold to help to organise Oettinger’s visit to Budapest to whom it was suggested that he should come to Hungary together with Mangold. Mr Lázár commented on the reports related to the case as follows: Benedek Jávor “is trying to forge a petty revenge on account of his massive defeat as regards Paks”. Oettinger’s visit to Budapest had nothing to do with his former position as European Commissioner for Energy, and he had no talks with the Government in connection with the Paks power station, he said.
The Minister was also asked about Saudi businessman Ghaith Pharaon’s visa. He said in reply: all the competent authorities and services involved rendered a detailed account of this issue before the closed meeting of Parliament’s Committee for National Security which was not attended by opposition members other than Zsolt Molnár, the MSZP President of the Committee. He is convinced that the state agencies involved in his entry in the country proceeded with due care and in a compliant manner, and protected the country’s national security interests, he said.
In answer to a question as to why no fingerprints were taken, he said: this does not only depend on whether the authorities seek to take fingerprints, but also on whether he has any at all. He remarked: there are some people who are unable to provide fingerprints, and he himself is one of them.
He was further asked about the activities of domestic paramilitary organisations. He said in reply: with the support of Jobbik, there was an intensive phase in this department between 2006 and 2010, and the government in office at the time is responsible for this. After the change of government, the new government restored the state monopoly of policing, and these organisations do not pose a genuine national security risk at present, they have no popular backing.
The radical organisation Magyar Nemzeti Arcvonal had seven members in recent months, he said. He also indicated that they heard the secret services at the meeting of the National Security Committee with respect to the case of the police murder in Bőny. However – while there are answers to a number of questions –, he does not wish to engage in details until the internal investigation of the police is closed.
In answer to a question, he also said: the Cabinet did not discuss the proposal relating to the termination of daylight saving time.
(Cabinet Office of the Prime Minister)
