The price of energy is of the utmost significance from the Hungarian viewpoint, Prime Minister Viktor Orbán stressed after the summit of the heads of states and prime ministers of the Member States of the European Union.
The Prime Minister said that this is amply reflected in the conclusions approved at the summit. The Prime Minister highlighted as another important criterion that the document guarantees: the right of Member States to decide on their own energy mix is respected. Each Member State is free to decide from which sources it wishes to satisfy its energy needs. “No one has the right to tell Hungary what percentage gas, nuclear energy or coal should account for; this is for us to decide”, Viktor Orbán underlined.
The Premier said in the context of the document that it merely serves as a framework; the specific draft regulations will have to be proposed by the European Commission. The Prime Minister mentioned as a positive development that the text continues to leave ultimate control in the hands of the respective prime ministers and heads of states. Viktor Orbán said that the Government is flexible on the issue of the transparency of gas procurement agreements from outside the EU; for the time being, there is a requirement of notification vis-à-vis Brussels if a party outside the EU concludes such an agreement with an EU Member State or a business resident in the EU.
The Prime Minister emphasised that there is no requirement of authorisation or approval, and later indicated that this would be unacceptable for Hungary as a matter of course. It would likewise be unacceptable if Brussels were to interfere with Hungary’s energy mix or if the process of energy procurement were removed from under the control of the heads of states and prime ministers, and “if what is happening in Hungary were decided somewhere in the bargain jungle of the labyrinth of the European Union’s bureaucratic legislation”. In the Prime Minister’s opinion, this is for the moment a remote risk, “rather than a realistic one”.
In answer to a journalist’s question regarding the Paks enlargement project, the Prime Minister said that the Government believed the fuel supply agreement vetoed by the Euratom Supply Agency to be acceptable, but there is scope for action. He reiterated that what is good for Finland is also good for Hungary; it is not contrary to the Hungarian interests, and is also acceptable for Hungary, he said referring to the fact that the Finnish Fennovaima is building a Russian atomic power station with Russian fuel supply, which Brussels approved a year ago.
Regarding another priority item on the agenda, the issue of the EU’s eastern neighbourhood, the Prime Minister took the view that it was a positive approach that the European Council linked the duration of the restrictive measures against Russia to the complete implementation of the Minsk agreement that serves to promote the political settlement of the crisis in Ukraine. The Prime Minister believes that this “legitimises” the debate, and makes it more rational at the same time, thereby removing certain historically rooted reflexes and national interests, while the debate regarding the sanctions is tied to the implementation of a specific agreement, rather than to an ideological and geopolitical dispute.
“If good progress is made in the implementation of the agreement, the sanctions may be eased; however, if there is no progress, the restrictive measures may be further tightened”, the Prime Minister explained. At the same time, the Premier also highlighted that the text of the conclusions does not clarify the consequences that may set in if Kiev fails to perform the tasks that it is required to fulfil by the end of the year under the agreements.
“And there is in this department at least as much doubt as there is on other issues”, the Prime Minister stressed, arguing that the Ukrainians will have a tough job to complete. The tasks in hand, including decentralisation and the issue of autonomy, pose major intellectual challenges in themselves, while the country is politically divided and there is a semi-war situation.
“Hungary, which has a vested interest in peace, is ready to provide all assistance it can”, the Prime Minister emphasised. The Prime Minister also drew attention to the fact that one may observe major problems in Ukraine in respect of the country’s economic indicators and processes, and the “cruel” IMF programme which Ukraine is required to implement “raises the problem of a breakdown on a social scale”. Consequently, Hungary may easily become a victim in the process despite its best intentions. The Prime Minister also said that there is ongoing consultation with the parliamentary parties as to the action to be taken should Ukrainians start leaving for the West in masses with a view to better social circumstances or simple survival. Hungary must address this issue. “I do not wish to cause panic. It is not yet time to talk about this openly; but the country must prepare for the eventuality that the stabilisation of the Ukrainian economy in the next few months may fail, rather than succeed”, Viktor Orbán stated.
In the context of the crisis in Greece, the Prime Minister took the view that Hungary’s outlook depends far more, compared with any other influence, on the improved prospects of the German economy. “If the German economy significantly expands, the Hungarian economy will grow even more substantially. This has been so for the past 15 to 20 years”, the Premier pointed out.
Orbán made it clear that Hungary is fundamentally interested in the smooth operation of the Eurozone and the resolution of the Greek crisis. However, as Hungary is not a member of the Eurozone, it may only participate in the debate with due caution and restraint. He added: Hungary’s figures are among the best. „The macro-figures of the Hungarian economy are the proof of a success story”, the Prime Minister said.