Viktor Orbán’s State of the Nation Address (27 February 2015, Budapest)

Allow me to cordially welcome you all, Ladies and Gentlemen, Mrs. Dalma Mádl, His Excellency Former President Pál Schmitt and His Wife,

I wish to thank the Honourable Chair for the invitation to speak. I listened carefully to the words of greeting from the Foundation’s Chair, Minister Zoltán Balog, who is both my friend and a Reformed Church pastor. I listened carefully, and I shall respond to his words. My situation now is something that I am thoroughly familiar with. The speaker turns to his audience, saying that he would like to say something before he starts his speech. My first remark would be as follows. The Honourable Chair has mentioned wiseacre analysts who take the view that the concept of a civic Hungary (i.e. one based on Christian-democratic, conservative principles) is merely a political product, and that this has somewhat shaken the faith of the members of our political community. I understand the concerns, but I hope for more self-confidence from Reformed Church pastors, let alone ministers. For our flag is flying high; everyone can see that. Everyone can see that we are a people’s party community, based on Christian-democratic foundations – the ideal, guiding star of which is a civic Hungary. I do not think that this would change in the next hundred years. The Honourable Chair also mentioned that national and Christian-based governance is – if I am quoting him correctly – not a political issue but a personal affair. It bears no relation to position, title, advantage or power. It is good to remind ourselves of this when we are in government. This is a key issue. The key issue of our governance. We could, of course, always observe by way of introduction, that we are human, too. We are no saints, though we should aim for nothing less; this is something that members of the Reformed Church should also consider. We have our own interests, our affections, and of course, our biases. The work we do is far from perfect, even if that is what we should strive for. But notwithstanding our frailties and imperfections, there is one regard in which we cannot go wrong: neither individual ambitions, nor individual or group values may take precedence over the interests and service of the nation. This is more than mere respect for the law, stronger than the oath you take on the Fundamental Law. As the Honourable Chair said, this is a personal matter, a matter of integrity, and is, at the same time, the very political foundation of Christian-democratic politics. I should mention here a piece of political advice that should be important for all Christian-democratic politicians. “Do not concern yourselves with whether God is on our side, but concern yourselves with whether you are on God’s side.” I wish us all good luck in this!

Ladies and Gentlemen,

I wish to welcome you to the Castle Bazaar, one of the country’s most exciting, most special building complexes. Everyone knows what the Castle Bazaar looked like, even just a few years ago: abandoned, in ruins, doomed to destruction. There was nothing here but rubble, weeds and shame. However, after long years of inaction, a brave decision was made. What was left for decades to fall into ruin and decay has now been restored to all its former glory. The Castle Bazaar could also be the symbol of our governance.

Ladies and Gentlemen,

Today I would first like to talk to you about the fact that some serious questions tower over European civilization, the European people and, in particular, European leaders. As I take a closer look at the realm of European politics, I not only perceive a lack of reassuring answers, but I am not even sure that we have even understood the questions at all.

Here is the first question, straight away. Is the era we Europeans live in today a continuation of the crisis period that began in 2008, or is this a new world after the financial crisis? This is not an unimportant question. Dare we hope that this is still only a period of recession, after which European life can return to the pre-crisis order which today seems like the good old days? Or do we have to reconcile ourselves to the fact that this is already a new world which is tough and unfriendly, and which will painfully degrade our good old continent unless we do something quickly? If this is the case, the free expanse of European life, its attractive and coveted lifestyle, and the magical treasures of European culture will count for nothing: our Europe will inevitably fall behind in the great global race.

Twenty-five years after the miracle of 1990, we can hear the sound of gunfire in the eastern half of Europe. In its southern part, harsh economic bailout packages are leading to increasing anarchy and opposition to the European Union, with the emergence of a range of alarming extremist parties. Terrorist organizations recruit fighters to join their ranks from among immigrants living in the continent’s western part, while the southern borders of the EU – including our own state’s borders – are besieged by waves of modern-day migration, in the face of which increasingly frustrated states and governments are at a loss. And this is happening in an economic environment in which millions of Western European citizens feel that they have to work ever more for less money, just to keep their jobs. Europe is facing questions which can no longer be answered within the framework of liberal multiculturalism. Can we shelter people, many of whom are unwilling to accept European culture, or who come here with the intent of destroying European culture? How did we lose and how can we regain the common European homeland to which every nation of the Union – including the Greeks and the Germans – can say “yes”? Can we prevent the return of the spirit of the Cold War, and the prospect of a Russia, excluded from Europe, as our enemy once again? And can we Hungarians stand up at one and the same time for the independence of Ukraine, the security of the Hungarians of Transcarpathia, Hungary’s energy security and its economic interests?

Ladies and Gentlemen,

As a committed NATO and EU Member State it is our duty, the duty of Hungary’s elected leaders, to work on giving our own answers to these questions. To guide the steps that Hungary takes to ensure that it may remain a safe and secure place in an uncertain world. To give our answers by defending the results we have achieved at the cost of much sweat and hard work, and by creating opportunities for the largest possible number of Hungarians. This, My Dear Friends, Ladies and Gentlemen, requires a sovereign and proactive foreign policy. A sovereign foreign policy has its pre-conditions: either you need a sizeable army or you must have economic success. It is best, of course, if you have both. The size and weaponry of our army are not suitable as the foundation of a sovereign foreign policy, although we should acknowledge that there is a process of rearmament in Central Europe. In 2010 we were fighting for our economic survival, and it took all our strength just to stand on our own feet. Therefore, in 2010 we could only pursue a foreign policy of adaptation. We could only expect our foreign policy to defend from external threats our efforts for our economic sovereignty, and the country’s renewal and reorganization. We accomplished this under János Martonyi’s guidance, to whom we are grateful.

By 2014 the situation had changed. Hungary had become an economic success story, which Europe, too, is slowly beginning to acknowledge. We no longer watch from the sidelines while others write our history for us. Therefore we announced a new foreign policy doctrine, and engaged in proactive foreign policy. We implemented the necessary organizational and personnel changes, shifted the focus to our external trade relations, and threw talented and ambitious young people in at the deep end. The old hands to the committee room, the young ones to the front! This sovereign, proactive foreign policy is, of course, surprising for many; our new and independent Europe policy is surprising, as is the fact that the era of adaptive and defensive foreign policy has come to an end. Naturally moderation is also important in foreign affairs. In fact, that is just where it is particularly required. It is well to know our limits, in order to avoid the fate of Tigger in Winnie-the-Pooh, whose bouncing got him into trouble.

Ladies and Gentlemen,

I saw that in the past we were either afraid of foreign countries or looked down on them. We must abandon this mentality as no longer being worthy of a country seeking to become Central Europe’s front runner once again in the near future – a country in which others may increasingly see the unfolding success of brave and independent economic policy. It is time for us to learn to look upon other countries as our equals, and to look upon ourselves as their equals. We should not be afraid to fight for the justice of our cause. Believe me, the world appreciates and acknowledges this. This month alone, one head of state, three prime ministers and nine foreign ministers have visited our country. They had good reason to come here, as Hungary has been placed on the map of European politics. This is what the socialists and the liberals call our “isolation” in foreign affairs.

Ladies and Gentlemen,

Hungary gave its own answers to the most important European questions in 2010. Already since 2010, we have been living in the future which many other countries are only just setting out towards or will attempt to reach sooner or later. Europe today continues to huddle behind the moats of political correctness, and has built a wall of taboos and dogmas around itself. In contrast, we took the view that the old pre-crisis world will not return. There are things from past periods which are worth keeping, such as democracy – as far as possible in a form which needs no modifying adjectives; but we must let go of everything that has failed and has broken down. We must let go of these things before they bury us beneath them. We have chosen the future. Those who do not make choices find that instead circumstances will make the choices for them. Those who do not actively decide will find that their lives will be decided for them. We therefore let go of neo-liberal economic policy, and perhaps we did so as late as we possibly could have; we let go of the policy of austerity, just before we were about to share the fate of Greece; we let go of the delusion of the multicultural society before it turned Hungary into a refugee camp, and we let go of liberal social policy which does not acknowledge the common good and denies Christian culture as the natural foundation – and perhaps the only natural foundation – for the organization of European societies. We decided to face the barrage of unfair attacks and accusations, and also let go of the dogma of political correctness.

And as far as I see it, Hungarian people are by nature politically incorrect – in other words, they have not yet lost their common sense. They are not interested in talk, but want facts and results; they are not interested in theories, but want jobs and affordable utility bills; and they do not swallow the nonsense that unemployment is a natural concomitant of modern economies. They want to free themselves from the modern-day debt slavery that they were driven into by foreign currency loans. They do not want to see their country thronging with people from different cultures, with different customs, who are unable to integrate; people who would pose a threat to public order, their jobs and livelihoods. Naturally, we should not be unfair on liberal notions, as during the period after 1990 they did bring a number of benefits to Hungary which we ourselves fought for; times have changed, however, and we cannot be blind to that fact. We learnt from György Bencze something which we now experience personally on a daily basis. He told us that liberals are extremely tolerant – they are only intolerant of fascists. But it is surely not their fault that everyone else – everyone except for them – is a fascist. Yes, we must understand that liberal politics only ever recognizes two kinds of opinion: its own and the wrong one. You yourselves may clearly remember this; this is how these considerations led to Hungary taking a new direction in 2010, and a new era of national politics began.

Ladies and Gentlemen,

Every nation attempts to cut from the fabric of history a social and economic model adjusted to its own body. We are familiar with the Finnish model, as well as the Austrian and Bavarian models. This is also what we strive for. We cannot yet tell whether the job we have been doing for five years will deserve the term “Hungarian model”. That will be decided by posterity, when the time comes. There are facts, however – important facts and results – which make you wonder, and achievements which will urge us to continue the work we have started. The modern world sees economic facts as the ones that truly count. It may be right, but I would attach higher priority to facts related to life. Above all, the facts which determine our biological survival and continuance.

Dear Friends,

Life in Hungary presents us with facts that surprise even the most pessimistic of people. More children were born last year than at any time in the last five years. The so-called total fertility rate – that is, the number of children born into a family – was 1.41 in 2014; this is its highest value since 1997, though still not high enough. The number of marriages has increased continuously since 2010; it rose by 9% in 2014 alone. Let me remind you that between 2002 and 2010 the number of marriages in Hungary fell by 23%.

Dear Friends,

The number of divorces decreased by 15% between 2010 and 2013. The number of abortions is in continuous decline, and has fallen by 20% since 2010. While the truth is that the number is still high, it has not been this low since 1954. And combined with this, since 1974 the number of deaths has not been as low as it is now. In 2014, 4,300 fewer Hungarians died than did so in 2010. Behind these figures, we find the family tax benefit, the maternity benefit extra, the allowance for first-time home buyers, the 25% increase in nursery places, and the job protection action plan. Critics, of course, claim that the Government has nothing to do with the improved figures. We have now grown used to this: if something goes wrong in life in Hungary, we are responsible, but if something improves, we have nothing to do with it. But this is not what matters – after all, governance is not a matter of vanity. And those for whom it is should keep their hubris under control. What matters is that we may finally hope that Hungarians have more faith in the future, and that they also seem to have attached greater value to life itself. We have taken, Honourable Chair, another step towards a civic Hungary.

Ladies and Gentlemen,

Foreign countries around the world were for a long time unable to decide whether to look on Hungary as a black sheep or as a European success story. It somehow did not feel right to acknowledge the achievements of a Hungary that did not heed their great words of advice. Analysts scratched their heads, and every specific Hungarian solution attracted no fewer than ten criticisms; but as the old Szekler said, “You need that many.” This is how it was until recently, when, with the conversion of foreign-currency linked mortgages, we simultaneously rescued foreign currency debtors and the banking system. For this, our thanks go to György Matolcsy, Governor of the National Bank! In capitals around the world, it is now seen as natural that the Hungarians pursue their freedom fights, one after another. They are not happy, but they understand that the Hungarians do everything differently. They are a special species, and this is what comes naturally to them. This is more or less where we are today. Seen from the outside, Hungarians are a people with strange notions, who petition Brussels with complaints against their own government on a daily basis, but also a people who eventually solve their own problems. It is true that they do not take kindly to double standards, which make them angry sometimes, but everyone has their own hobbyhorse. However, at least they do not ask for easy terms or status as a special case, they do not want the Germans’ money, and in the end they deliver the expected economic figures.

And indeed, Ladies and Gentlemen, for two years the value of wages has been continuously increasing. It rose by 4% in 2014. Employment levels have also broken records. Last year 210,000 more people were in employment than the year before, and since 2010 455,000 more people have found jobs. Only today, Opel has announced that it will hire 500 new employees this year, and that it will employ 500 people in the short term and 1,000 in the long term in connection with a new project in Szolnok. Additionally, thanks to family benefit and welfare contribution allowances, HUF 236 billion remained with families in 2014. At the same time, more revenue is being generated by every type of tax, and it would appear that it is no longer either fashionable or worthwhile to conceal one’s income. With the elimination of foreign currency-based lending, we converted loans worth HUF 3,600 billion into forint-based loans; we thereby protected the homes of half a million families, prevented a nationwide financial disaster, and rescued families from further debt totalling HUF 700 billion. And one other thing that has escaped no one’s attention: the Hungarian economy grew by 3.5% in 2014. This is well above the EU average, bringing us among the nations of Europe’s economic elite. We have also curbed price rises: prices have not increased in essence or across the board, which is something not seen here since the sixties, so something that people under the age of 50 are experiencing now for the first time in their lives. Everyone knows that inflation is a hidden tax on the poor. Therefore poorer people are the principal winners from low inflation.

Dear Friends,

Hungarians’ financial assets have also increased. People in Hungary own financial assets worth HUF 27,910 billion. This is hard to believe, but it is true. And finally, we have also started buying government securities ourselves, the increase leading to 48% of total debt now being held domestically: this is the amount of sovereign debt in Hungarian hands. Pensions are particularly important for me. In 2010, I personally pledged to protect the value of pensions. We have delivered on this promise; what is more, between 2011 and 2014, pensions increased by 19% in total. This approximates to the value of the 13th month’s pension, taken from pensioners by the Bajnai Government. We may therefore hope that they will soon recover all that which was taken away from them by the socialists. Women who have spent forty years in employment receive recognition from the Government; this is something that we declared in the 2010 national election. Last year 120,000 women retired after forty years of work, and I sincerely hope that the same number of families now have grandmothers who as a result are able to help in the raising of young children. In 2014 retail sales increased by 5.2%: a rate last seen in 2004. And finally tourism also took off: in one year, the number of visitors coming to Hungary increased by 13%, while a general decline was seen in the rest of Central Europe. The Hungarian GDP growth rate is three times the EU average. But the most important factor as far as the future is concerned is that investments increased by 14%: the highest rate of increase for 17 years. In spite of these results and great achievements, however, it is wise to exercise some modesty. We should not follow the example of the old Szekler man who, when asked whether he knew how to do everything, said: “Yes, everything is part of my knowledge.”

Ladies and Gentlemen,

I once asked President Erdoğan why the controversies surrounding Turkey are so fierce. It was a canny question, but you can surely see through my gambit. He said that foreign countries, including the largest ones, must understand that all the Turks want is to be allowed to be Pashas in their own country. This is a very apt way of summing up the notion of national sovereignty. We cannot be successful if we can only be servants in our own country, if we have no independence. National sovereignty is a fundamental question. National sovereignty gives us a better life, which is our core interest.

Ladies and Gentlemen,

If we look at the performance of the Hungarian economy from a wider perspective, we may observe something important. If we consider our economy in the light of the half century between 1960 and 2010, we may see that it was only ever capable of fast growth when it accumulated significant external debt. The historic significance of the performance of the Hungarians today is that the growth which started in 2014 is not undermining our external trade balance; what is more, our foreign trade surplus increased further. In simple terms, after long decades – perhaps as long as a century – the Hungarian economy is finally not growing from debt, from external credit. This is a genuine economic breakthrough. And there is more to this than good governance. That alone would not have been sufficient for an economic breakthrough.

Ladies and Gentlemen,

A nation is coming of age here. It is coming of age in a financial sense. The state, businesses and households have all started behaving like responsible adults. They thoroughly considered their options, made rational decisions, and implemented them in a disciplined fashion. We may simply call this a uniting of our forces, based on mutual trust. This is why we are now in a better position, and this is why we are hungry for more success. According to the opposition, of course, even if a fraction of the good economic news is true, the Government has had nothing to do with it: it was just good luck. There are also other criticisms which we could take more seriously. There are some who believe that a number of measures enacted by the Government are only transitional, such as sector-specific taxes, and therefore current success will not be sustainable. We, however, take the view that the restoration of the balance of our finances was followed by a shift and a reorganization in the economy, and a positive growth trend set in; this will in turn generate new revenues for the budget, reduce the interest payable on our debt, and help to expand employment. All in all this will render the system sustainable. This is good news for the people but enrages the opposition parties, because it dampens their hopes for returning to power and increases the chances of their having to wait a little longer for a prospective partner on the dancefloor.

Ladies and Gentlemen,

I would now like to talk about the goal, meaning and mission of this term of government: the remaining three years ahead of us. Or to put it another way, what it is that we are fighting for? In addition, of course, to preventing the socialists from making a comeback and making sure that the country does not have to start all over again from scratch in pursuit of everything that we have earned through blood, toil, tears and sweat.

Ladies and Gentlemen,

We want a country in which everyone is successful; but this is not yet the case today. There are large numbers of people who are very far from this. They have been called all sorts of things: the losers from the fall of communism, wage-earners, or simply workers. I would rather call them hardworking people. The next few years should be about them: everyday hardworking people and their families. We have already done a great deal for them, but they need more. We must now help the people who not only love Hungary, but work for it and want to work for it. We must now remove the obstacles in their path. Hungarian society should no longer be a building where there is no movement between the different floors because the elevator has broken down and the staircase has collapsed. If that is what we find, we must rebuild it – and meanwhile at least provide a ladder for those who want to climb higher. I am talking about those people who work hard day after day to support their families, to pay their bills and taxes, and to raise their children decently. I am talking about people without whom the country can never achieve anything. We shall make decisions which will make the lives of these people easier. We want everyone who works to be able to live from their jobs to increasingly high standards. We want them to see not only the mere necessity of a job but also the meaning of their work, and we want to enable them to plan for the longer term. This is why the tax benefit provided for families with two children will increase; this is why the first-time home buyer programme will be launched; and this is why, following a career model for teachers, new career models will be introduced for the police, the military and public servants. This is why we are increasing general medical practitioners’ financial allowances. This is why we are building new kindergartens, and why we shall introduce a new vocational training system. And this is also why school meals will be free for our children. This is why we are attempting to set up a longer-term pay increase programme between employers and employees. I sincerely hope that chambers and trade unions will be able to reach an agreement. And we must, of course, protect Hungarians. We have extensive experience in this field. We must protect hardworking Hungarians from being exploited and cheated. We shall protect them against those seeking to abuse a position of superiority, those who want to profit unfairly from them, and those who want to take away that for which they have worked hard. We shall therefore achieve full accountability in the banking sector, and shall also defend the reductions in household utility expenses against cunning machinations in Brussels currently being hidden in plans for the energy union. This is our mission for the next few years. I could also say that the hundreds of thousands of hardworking Hungarians must be admitted to the ranks of civic society; we must make room for them and their children in the world of successful Hungarians.

And, Ladies and Gentlemen, we must not do this with the methods the socialists used: taking out huge loans, distributing them in the form of benefits or one-off pay rises as they did in 2003, and thereby crippling the national economy. We should only attempt to assist those who have fallen behind together with increased economic growth, and in parallel with improvement in our competitiveness. We are familiar with the usual objection that this is almost impossible, as in advanced economies everything points in the opposite direction: those at the top climb even higher, and those at the bottom fall further downwards. This may be the case over there, but I have a secret role model whom I present in arguments like this as a kind of trump card. There is a Hungarian dentist – no longer in her teens, and a mother of three – who has run the 245 kilometres between Athens and Sparta several times, and has even set a world record. She is not a professional athlete but, as I said, a Hungarian dentist and a mother of three. The message of this story for Hungarian politics is that what we consider impossible is not a fact but a mere opinion. You may, of course, argue that the work ahead of us is more complex than a race, in which you push yourself to your limits. There is indeed some truth in this. But Bach was once asked how he could play such an extremely complicated instrument as the organ. “There's nothing remarkable about it,” the master replied. “All one has to do is hit the right keys at the right time and the instrument plays itself.” So that is what I have to say on our prospects.

Ladies and Gentlemen,

I should also mention here that in my view it is likewise the Government’s duty to prepare Hungary not only for tomorrow but also for the day after tomorrow. To prepare Hungary for climate change that seems irreversible, and to prepare for a new wave of technological breakthroughs, including the latest developments in medical genetics announced in London only the other day. We must remind ourselves that the Industrial Revolution resulted in slow waves of progress; this technological revolution, however, is like a tidal wave. Every industry is under threat of complete transformation. The truth is that it is governments which are best-equipped to influence the effects of technological change. Therefore governments – including our government in Hungary – must take the lead in these changes, must encourage creativity and innovation in the private sector, and must at the same time ensure that citizens have the means at their disposal which are necessary for competition. We have placed the management of this work in the capable hands of Professor Pálinkás.

Ladies and Gentlemen,

Finally, there is one more thing worth reflecting on here. Less than a week ago we had a by-election in one of our constituencies. Our party was beaten easily. This is something we have not experienced for quite some time. We might also look at the positive side of this: if an independent candidate can score a victory over a governing party with a two-thirds parliamentary majority, this means that the electoral law is sound and functioning well, because it has also given a chance to the underdog. At the same time, if this sort of thing can happen there can be nothing seriously wrong with this democracy, not to mention the freedom of the press – without which an independent socialist candidate could surely not have won. What is more, we lost our two-thirds parliamentary majority, and western comrades may finally feel reassured that we are good democrats; over there, a good democrat is one who loses – or if by chance they win, one that is weak. This is not a joke – though in fact, actually this is a joke. However, if this was all we saw, if this was all we concluded from our defeat, we would not be truthful either to our supporters or to ourselves. As far as I can see, some of our supporters – and let us take this seriously, a significant proportion of our supporters – did not stand by us. They are certainly unsatisfied with us. I myself have heard that the Government did not find the right balance between argument, agreement, compromise and action. We shall probably need more consultation, more compromise and more agreement. But there is perhaps something else as well. We are perhaps not fighting hard enough – or at least, not fighting well enough. This may have been understandable and excusable before. We all thought it would have been natural and desirable – and, let us admit it, comfortable – if our second overwhelming victory had been followed by a more peaceful period. Say three years focused on governance without ceaseless fighting, followed by an intense campaign year at the end. This is how we imagined it. Dreams, dreams, sweet dreams.

We can now see that we shall not have a single moment of peace; we shall be under continuous and ruthless attack, a permanent negative campaign. This is something we should not underestimate; our parliamentary majority will not help us. We must learn from our own experiences: this is how the Antall government came to grief, and this is how the socialists came back to power against us in 2002. If we are not careful, we may find ourselves accused of corruption by those who plundered the country. We may find ourselves accused of arrogance by those who once told the whole country to its face that, instead of governing, they had been lying to the people night and day. We may come to find ourselves reproached for living the high life by communist billionaires. And those who took away people’s pensions and wages, and made hundreds of thousands of people reliant on benefits, will shed crocodile tears for the poor. And we may come to hear sermons on responsibility from those who committed the irresponsibility of the century through the introduction of foreign-currency lending. So, My Dear Friends, once more we must be on our guard. We must not rest on our laurels. We must stand up from our armchairs before it is too late, and we must do our job. We shall only achieve a civic Hungary if everyone who sees this as a priority works for it. I suggest we should not be squeamish, but should get down to work. If we do not like something or would like something different, we should tell each other straight, as is our way.

Dear Friends,

Let us not forget that those who believe that there is ultimate victory in democracy are completely wrong. Only the communists believed that there can be a final struggle and an ultimate victory – and look where they ended up. In democracy, in the world of civic principles, we must fight for trust and recognition over and over again, day after day. If you want a civic Hungary – and that is what we want – it is once more time to fight for it. But we can only fight together, and not against one another, because strength lies in unity, and because we stand together under one flag. A student once asked his teacher: “Will it be long before things change for the better?” The teacher said in reply: “If we sit around waiting, it will be.”

Good morning, Hungary! Good morning, Hungarians!

(Prime Minister's Office)