20 February 2015, Warsaw

Distinguished Ladies and Gentlemen,

Whenever one is presented an award like this, one is expected to say that one has not deserved it, or might not have deserved it; what I would like to say to you, however, is that time alone will tell whether or not you have made a good decision. In any event, I am proud that the Polish Chamber has recognised the joint efforts made in Hungary by the Hungarian government and the Hungarian chamber. I know that you have had a long day and that the world of politics in Europe is changing rapidly. When you invited me here, patriotic economic policy might have been the most interesting issue, but since then the Ukrainian crisis has been given priority over everything else and debate on that subject has also overwhelmed all other political questions. The differences between countries are clear. While everyone – including us, Hungarians – stresses the importance of Europe’s continued unity to enable a European show of strength, if there is no unity there is no strength either and the differences between the Member States are still clearly visible. I do not wish to expand on this, because after today’s work, I am tired as well as you. I had a vigorous and stimulating meeting with your prime minister, and ultimately we jointly affirmed Polish-Hungarian friendship.

The European Union had founders who followed a paradigmatic European Christian doctrine, saying that Europe had to be transformed from different constituents into a single body imbued with a single spirit; if one part of the body suffers, others will suffer also. The friendship of the Polish and Hungarian peoples is imbued with this same spirit, this soul. If one country suffers, the other suffers too. If one country fights for freedom, the other fights with it too. This was the case even in the most difficult times. Hungary could always count on Poland, for which we have been and will remain grateful. This is why coming to Poland is always a special joy.

In Hungary, also, the umbrella symbolises protection. We say that if you hold an umbrella over something, it is protected – and that protection is for all the world to see. Protection to people, values, ideas and interests. I think of myself as someone who, ever since entering politics, has always sought to protect freedom, and I also see receiving this award as perhaps being connected with that. I have always fought for the freedom of Hungarians – not only in abstract conceptual terms, but also in everyday life. Without freedom there is no enterprise, and if Hungarians or Poles cannot take part in economic competition, the problem is one of freedom. Strengthening national capital and making national capital competitive is also a question of freedom, and not just of business. I cannot imagine a free Hungary or a free Poland in which national capital is sidelined and not given the assistance required for it to close the gap built up between our countries and the West during forty years of communism. For nowadays we must compete with those who did not have communism, but instead enjoyed capital accumulation. Nations’ capital assets grew enormously and enterprise sectors burgeoned; now Hungary and Poland are competing with them, and also in other markets. I have always recognised the European Union’s competition regulations, yet I have also always thought that in Central Europe states have an obligation to do as much as regulations allow in order to strengthen national capital – be it Polish, Hungarian, Czech or Slovak.

Distinguished Ladies and Gentlemen,

I would also like to talk about some more serious problems, but before I start I need to give some explanation, to reduce the sense of surprise some may feel. Poland is a large country, four times the size of Hungary: its size and dimensions are different, and so is its mission. It is important for you to know that when you invite a Hungarian into your home, you are playing host to a peculiar creature: they speak a language you cannot understand, they eat strange food and say unexpected things. To illustrate this, let me share with you a story from World War II, when, quite remarkably, Hungary declared war on the United States. When we made the announcement, the following conversation took place at the US State Department in Washington. The US Secretary of State asked the following question:

“What is your form of state?”

“A kingdom,” we answered“And who is your king?”

“We have no king, we have a regent.”

“And who is your regent?”

“Admiral Miklós Horthy.”

“So you have a sea?”

“No, we do not.”

“I see. And do you have any territorial claims against the US?”

“No, none.”

“Do you have territorial claims against any other country?”

“Yes, against Czechoslovakia and Romania.”

“I see, so you are also at war with them.”

“No, sir, they are our allies.”

Well, this briefly outlines everything about Hungarian politics.

It shows you, Distinguished Ladies and Gentlemen, that having a Hungarian guest is a complicated thing. Such a guest has an intricate way of thinking, which sometimes leads to rather useful things. I can tell you with due modesty that Hungarians also invented the ballpoint pen, the punch-card computer and the first modern espresso machine, of the type used today everywhere in Europe. To a certain extent I am also seen as a Hungarian curiosity, a kind of exotic creature: I have served as prime minister for a combined total of nine years; in Europe, only Mrs. Merkel has more experience as a head of government. I began my career in the underground resistance during the communist era, I have stood for the post of prime minister six times – losing three times and winning three times – and last year my party won three elections: at local, national and European levels. Well, Distinguished Ladies and Gentlemen, My intention with this introduction was not at all to boast, but to help you understand that I am about to say some strange things. It is true that in politics a speech is a very risky thing, but as we have won two consecutive parliamentary elections and have a two-thirds majority, I can afford to indulge myself somewhat. The first thing I wish to say is that the project we know as the European Union has now stalled. Monetary union was not followed by fiscal union. As you can see, there are diverging views about the role of the European Central Bank, and our homeland, our continent of Europe, is losing in the global competition. Our share of global production and world trade is continuously declining. We Europeans have 8% of the world’s population, generates 19-20% of global output and 50% of global social spending; meanwhile debt is rising continuously, with combined national debt in Europe close to 90% of combined gross national product. These facts, my dear Polish Hosts, give rise to some inconvenient truths. The first inconvenient truth is that no one will do someone else’s homework for them. There will be no European recovery until the troubled countries first put their own economic houses in order. There are few in Europe who dare say in their own countries that everyone must continue working more for the same amount of money. Yet in a crisis the only way to recovery is for people to work harder for a few years. The second inconvenient truth is that to change Europe’s predicament, political leadership will be needed; but over the last few decades a general belief and a political mainstream has developed which sees strong political leadership as risky and strong political leaders as dangerous guys. But if we do not believe in the need for strong leadership and strong leaders in a crisis, how will be able to reverse our decline? And here we come to the third unpalatable fact, the third inconvenient truth: Europe’s energy situation. It is increasingly obvious to all of us that the main reason for Europe’s lack of competitiveness is high energy prices. The time is coming for somebody to declare that for countries like ours – which are not rich enough – alternative energy is almost impossible to fund, and that Europe cannot turn its back on nuclear energy. Someone should also tell the especially inconvenient truth that we cannot bring about competitive energy prices without Russian involvement in the European energy market. In addition, someone should also break the taboo and admit that these days in Europe the price of energy is the most important issue and climate comes only second. Today in Europe nobody is coming forward to declare these truths. Nonetheless, we have high hopes for the new European leadership and expect them to come up with answers to these difficult issues; and – although we are Hungarians and not Poles – we are still proud that the European Council is led by President Donald Tusk, and we feel we have a very small share in his success. It is an honour for us to work with his guidance, and we hope that under his leadership Europe will find answers to these difficult questions. Dear Hosts, And now I would like to say a few words specifically about Hungary. If I wanted to describe our situation accurately, I would say that today Hungary is both a political black sheep and an economic success story. I do not want to talk now about how a country can become a political black sheep, as one day you too will find out. What I can definitely tell you is that a Central European leader who is patriotic, who puts nation first and for whom Europe means Christian culture – and is not afraid of saying these things – will definitely become a black sheep sooner or later. Distinguished Ladies and Gentlemen, I do not want to talk about that, however – I would much rather talk about success. One should never complain about injustice, at least not in politics; the only good response is to become successful. According to another saying in the Hungarian language, only winners should cry: others should work continuously to become winners. Until you win, you must work and not whinge. This is also the essence of the Hungarian strategy. We want to change the unfavourable image that has developed about Hungary by achieving economic success, which will make us winners and enable us to respond to critics like the fans of a winning team after a football match. What they chant – at least in Hungary – is “Look at the scoreboard: the result is up there.” As a brief summary of the achievements of the Hungarian economy, I would like to remind you that after the millennium Hungary went through more difficult times than Poland did. Obviously you, like others, will not remember that in 2008 the first country to collapse financially was not Greece, but Hungary. If the IMF had not granted us financial assistance immediately, we would have had to declare insolvency. We took over the reins of government in Hungary in 2010 and introduced a special Hungarian crisis management model. I am not here to appraise that model, as that job can be left to history. What I would like to say to you here, however, is that every year since then we have kept the Hungarian budget deficit below 3%, and we have reduced the national debt from 85% to 75–77%. On a pro rata basis, our balance of trade can compete with that of Germany. Last year we posted economic growth of 3.5%, and unemployment was reduced from 13% to below 7%. I would like to share some ideas with you about this special Hungarian crisis management method. I have learned that you should never punish those who work, and neither should you ever punish those who earn money. Consequently, income should not be taxed when people earn it, but it should be taxed when they spend it. That is why we chose to keep the income tax rate very low – it is currently at16%. This applies equally to everyone, from millionaires to those on the minimum wage. There is one income tax rate, but we also have a high VAT rate, so those who spend more pay more tax. We have no inheritance tax at all, and we intend to cut income tax even further, introducing a flat tax of below 10% if possible. Corporation tax for small and medium-sized companies is 10%, and for large companies 19%, and we hope that this will work. In practice, individuals in Hungary who are capable of working receive no welfare transfers. Naturally it is our duty to support and maintain those who are unable to work as a result of illness or disability, but anyone who is capable of work is offered paid community work instead of benefits. The wages paid for such work are twice that of what unemployment benefit would be, but those who do not accept such work are not entitled to any benefit. If all goes as planned, by 2018 nobody in Hungary will be unemployed, because we will be able to offer some form of work to everyone. Let me add that by the next election in 2018 we intend to see some radical reductions in bureaucracy, broadband internet in every Hungarian household and every Hungarian motorway reaching the country’s borders. We see a bright future for Hungary. It will be an arduous journey, with difficult and controversial policies, but I am convinced that this is the only route to success. To be more precise, there could be another way – but no one has yet shown it to us.

Distinguished Ladies and Gentlemen, Dear Polish Hosts,

Currently 341 Polish companies operate in Hungary. I think this is an impressive figure. You have invested more than EUR 150 million, and last year alone the volume of Polish-Hungarian trade was more than EUR 7 billion, growing by more than 7%. I will tell you quietly – only here in Warsaw, so that it cannot be heard in Budapest – that overall the balance is in your favour. Nevertheless, my aim – also confirmed by this award – is to use the great opportunity ahead of us. While much doubt has been raised about the future of the European economy, everyone agrees that Central Europe will develop in the coming years. European growth will be driven from here in Central Europe, with Poland playing a huge role and –proportionate to its size – Hungary also seeking an important role. The European future is here in Central Europe. I will try– as if in return for this award, Distinguished President – to make sure that Hungarian and Polish friendship is also reflected in the everyday economic cooperation of Polish and Hungarian people, and not only during freedom fights and not only in high-level politics. I wish for all of us to work towards this, and we also ask the Polish government to strengthen the fabric of everyday economic cooperation; through this, may there come about true Polish-Hungarian friendship between our nations, residents and citizens that can withstand the test of time in all situations. If I have been able to contribute something to such endeavours over the last few years, and if you see my efforts in that light, I am honoured; and I shall continue working for the same objectives in the future as well.

God bless Poland!

(Prime Minister's Office)