According to Prime Minister Viktor Orbán, the brokerage scandal has shown that Hungary lacks a treasury system which is able to ensure appropriate conditions and security for the “parking” of public money, including the funds of local governments.
With such a modern treasury Hungary could keep public money completely away from “these types of financial manoeuvres”, the Prime Minister said in an interview with public broadcaster Kossuth Rádió. He said that it was a good decision to take steps after the collapse of the first brokerage firm, because thanks to these, “people’s money could be saved.”
He explained that following the Buda-Cash case it emerged that money belonging to local governments and to a health care fund for defence employees had become trapped; it was then that“the alarm bell rang in our heads”, signalling a warning about the uncertain future of the other brokerage firms. Mr. Orbán said that at that point it was decided to immediately end the risky practice of keeping taxpayers’ money with brokerage firms. On the question of informing the public, the Prime Minister said that every single household has been made aware of the news that keeping money at brokerage firms is extremely risky: “every Hungarian has known that for weeks now.”
He stressed that the state institutions concerned were not gambling with taxpayers’ money, and they had “invested their money in low-risk securities – it was simply deposited in the wrong place.”Furthermore, he confirmed that he had received a letter from the Quaestor brokerage firm – sent to him directly, not through an intermediary – the content of which was the same as that of their statement to the Hungarian National Bank.
He went on to say that after receiving the letter he forwarded it to Minister for National Economy Mihály Varga and instructed him to contact the brokerage firm to suggest discussion of the matter. When asked whether a decision to withdraw at-risk investments from these institutions was made prior to receipt of the letter, the Prime Minister reiterated that the decision had been taken well in advance of that. He also said that he does not begrudge brokers “the life of the super-rich” if their work also helps others to make money.
“However, the knives are out for such people if their lifestyles and wealth are gained by stealing hardworking people’s money,” he said. The Prime Minister said that the Fidesz proposal to freeze the personal assets of individuals responsible for the scandal provides a chance for victims to get back their money, or at least part of it. In conclusion he said that the Quaestor case is “a more complex legal story”, but “finally we have reached the stage of arrests here as well.”
If we succeed this year, from now on we will always finalise the budget by the summer
If the Government succeeds this year in gaining approval of the budget by the summer, it will be prepared in this way every year from now on, Mr.Orbán said.
According to the Prime Minister, the Hungarian economy is on the right track, people have worked well over the past year and the economy is at the start of a new era, setting out on a growth path which will allow for a budget that can guarantee people an easier, better and more secure life. He pointed out that this year establishing a career model for the armed forces and the police will be an important event.
Another topic in the interview was the fuel supply for the Paks Nuclear Power Plant extension; on this the Prime Minister said that both the Hungarian and Russian parties have accepted thatthe corresponding provisions of the Russian-built Finnish nuclear plant contract should be applied. Euratom has also approved of this in theory. “We have an agreement with Russia,” Mr. Orbán said in reply to the suggestion that the Russian party may not want to amend the previous provisions.
Discussing the issue of the M4 motorway and the fact that the European Commission has rejected the project, the Prime Minister said that nothing can be done about the EU not providing funds forthe project. Referring to the Commission’s suspicion of a cartel agreement, he said that “There is only one choice which we must consider: whether we carry on and finance the project from taxpayers’ money […] or accept that the EU has made certain comments which should be examined, and on that basis reconsider the whole process.”
Elaborating on the issue of the infringement procedure launched by the European Commission against Hungary due to the Land Act’s restrictions on land acquisition, Mr. Orbán stated that at its next meeting the cabinet will decide on what points of the EU’s argument it will accept.
Talking about the Modern Cities programme, the Prime Minister said that there will be no success for rural Hungary without modern provincial cities.