9 June 2015, Budapest
Ladies and Gentlemen, Honourable Board Members,
Please allow me first of all to extend my warmest welcome to you in Hungary. It is a great honour for Hungary to be your host here today. Hungarian-Arab relations have always occupied a special place in Hungarian diplomacy. While there have naturally been lows as well as highs in these relations, the good will that exists between Hungarians and Arabs has never disappeared from inter-state or economic relations. We have recently welcomed the President of Egypt here; in addition to concluding some favourable agreements amounting to a rather considerable sum, we discussed the fact that over the last few years some 600 experts from Egypt have studied here in Hungary and, having returned to their homeland, now play an important role in the Egyptian economy and in politics there. Living and working in Egypt alone, there are 600 people who have studied in Hungary. In all probability I could cite comparably high numbers in the context of other aspects of Arab-Hungarian relations.
Allow me to remind you that the city which you are in today is a dynamically developing tourist destination. Our tourist industry has an annual growth rate of 8–10 per cent, and if you are looking for accommodation in Budapest, you are most likely to find rooms in an Arab-owned hotel, given that the last decade has seen a considerable percentage of hotels in Budapest being bought by Arab investors. Allow me to say a special word of thanks to our friend Mr. Adnan Kassar; we are great admirers of your work. As you know, western civilisation is based on trust in our institutions. This is the guiding principle of the entire western world, and we sometimes tend to forget that these institutions are run by human beings. I can tell you with complete certainty that we would not be here today, and this meeting could not have taken place, had Mr. Adnan Kassar not worked quite as hard and with quite as much perseverance for the promotion of relations between Hungary and the Arab world as he has done over the past fifty years. Please allow me to take this opportunity to thank him, now in a more public forum, for all the efforts which he has made in the interest of Arab-Hungarian relations – and through this, for the Hungarian people. Thank you very much, Mr. President, for all the work you have done over the past few decades.
Ladies and Gentlemen,
I am told that today you will meet our Minister for National Economy, and that tomorrow you will hear an address by the Governor of our central bank. They are both remarkable individuals. I would merely tell you that in 2010, when we returned to office, Hungary was more or less in the same poor condition as Greece; compared with that state of affairs, Hungary today is an economic success story, with a stable financial system, steady economic growth, dynamically expanding exports, and the second or third highest growth rate in the European Union. These results are attributable to the hard work of individuals such as the Minister for National Economy and the Governor of the National Bank; so I am certain that both meetings will be exciting for you. Furthermore, at this event you will discuss everything about the economy that is worth knowing; it is perhaps my duty here therefore to say a few words about Hungary, and to give you some reasons why you may consider it worthwhile coming to Hungary.
The first and most important reason I would like to present here is the fact that this is an open and friendly country, inhabited by friendly people. In practice there are no legal obstacles to investment, and Hungarians look upon foreign investors as people who create jobs in Hungary, and who are therefore our friends. This open and welcoming mentality is not present in every country, but it is prevalent in Hungary. I would like you to know that Hungary is a safe country. If you look at public security indicators, you can see that Hungary is one of Europe’s safest countries. In this city there are no ghettos, estates or suburban districts which you could not enter safely; there is public security and strong law and order across the whole city. And Hungary is also a safe and secure country in a legal sense. Almost all international law firms are present in Budapest, and they are able to furnish you with all the legal assistance that you need for your business operations. The third reason you should consider engaging in economic cooperation with us is the culture of respect. I am no expert on the civilisational processes taking place within the Arab world, but I certainly know what is happening in our world. I have to say that I observe respect disappearing from the lives of societies; in this corner of the world, there is diminishing respect for God, there is no respect for nations, and families are not held in the esteem that they deserve. The culture of respect is increasingly fading away in this part of the world. In some countries this is considered natural. They have even invented a positive term to describe it: it is called “progress”. Therefore, everyone west of us today is progressive; but we do not share this view. We believe that a high-quality, happy life which is based on love can only be led in a country which stands on foundations provided by the culture of respect, and which consequently speaks in a tone of respect. This is relevant here, Ladies and Gentlemen, as you come from another civilisation, a different culture, and it is important how a delegation, an investor or a family visiting here from a different culture is welcomed and received. I would like to reassure you that everyone is received here with respect, including those who come from the Islamic world. Islam and the roots of your civilisation are very much appreciated here; we look upon them as a great spiritual and intellectual edifice, without which there can be no peace, happiness and balanced human existence in that part of the world. Therefore we do not see people coming from the world of Islam as a threat: we welcome them as representatives of a high civilisation, and we are not ashamed to learn from them. I am now going to recount an unexpected quotation. After the financial crisis – in 2008, or perhaps in 2009 – the head of the Roman Catholic Church, the Pope, surprised us with the following statement. Allow me to quote what he said: “The Quran is what we must reread […] If our bankers who are yearning to gain profits from stakeholders respected some of its canonical laws, we would not have this crisis.”
Well, Ladies and Gentlemen,
It is with this mentality, this way of thinking that we look upon an investor culture originating from a different world and a delegation of businesspeople coming from a different world. We sincerely hope that they will contribute something to our economy and to our life as a nation which will be beneficial and valuable for us.
Ladies and Gentlemen,
This is why we seek cooperation with your world. As Prime Minister of Hungary, I can tell you that the fact that in the western world we have succeeded in building democracy based on human rights, and are content with this (notwithstanding the problems I have mentioned), does not mean that we can think that this particular culture of democracy and human rights would bring the same benefits in other parts of the world. Hungary therefore recognises the right of every country to develop the ideas, the institutions and the political procedures which it deems most appropriate and most successful for its own situation. This is our attitude. I can reassure you that here, in Hungary, no one will be given a lecture on democracy and human rights, because this would quite simply show lack of respect towards people who have honoured us with their visit. I sincerely hope that here over the next few days you will have the opportunity to experience first hand this friendship, and an inclusive environment which concentrates on understanding and is driven by respect.
And finally, I would also like to say a few words about business – though not in quite the same depth as the Minister of the Economy will. I would merely like to point out the main directions. I have been Prime Minister of Hungary for a combined total of ten years, and I have received a great many business delegations; I therefore have some knowledge of the sectors which may be exciting and interesting for foreign investors. I am also aware that you come from large countries, with very high GDP figures, very high savings figures, and very high bank capitalisation figures. The populations of some of these countries are also very large. Hungary is not comparable with these countries; there are only ten million of us. And while we have an annual growth rate of 3–3.5 per cent, we are still not among the well-off European countries. The question arises: what sort of business can be done with a country of ten million? I would like to remind you that Hungary is situated in a region – Central Europe – with a total population of more than 80 million, and a region – the eastern part of the European Union – which will be responsible for a large percentage of the European Union’s growth in the coming period. In fact economic growth in the European Union will only occur – or primarily occur – in Germany and Central Europe. Therefore, if someone is looking for a prosperous area within Europe, Hungary is a logical choice.
I would also like to remind you that we have a stable financial system with our own currency, and when we look at the European economy, we can see that the countries outside the eurozone are more successful. I can reassure you that Hungary will not engage in dubious accession adventures in the next few years. Hungary will preserve its financial stability through its own currency. Consequently, accession to the eurozone is not on the agenda today, and when you prepare your calculations with respect to the future, this is what you can reckon on. I would like to remind you that this is an emerging region, and Hungary, too, is a country on the rise. You have come at almost exactly the right moment. Had you come six months ago, it would have been even better from a business perspective, as over the last six months we have witnessed an increase in asset values in Hungary. A successful country with an economic growth rate above 3 per cent, and a positive outlook; this is a country on the rise, but which is still far from its true worth.
I would therefore like to draw your attention to the real estate sector as an investment opportunity. Everything that you buy in Hungary today will be worth much more within a year or two. Businesspeople from the Arab world who came here earlier are perfectly aware of this, and they have made very significant investments in real estate. I would like to invite you to study these examples. I would remind you that tourism is increasing by 8–10 per cent annually in this country, and it may therefore be an ideal sector for investment. Hungary’s healthcare sector is among the best in Europe: we train thousands of foreign physicians in English and German in our healthcare education system, and we have a highly advanced pharmaceutical industry and sophisticated healthcare services. Consequently, those who are interested in investing in the healthcare sector have come to the right place. Our Foreign Minister mentioned that we have achieved significant results in water management and the culture of urban systems management. We have also achieved results in this field in Arab countries, and our services meet the highest European standards. You should also not forget the issue of energy. An international corporation headquartered in Hungary, Magyar Olaj- és Gázipari Nyrt. (MOL), is Central Europe’s largest energy industry company, it has made successful acquisitions in a number of Arab countries, and cooperation with this enterprise may also be fruitful. And finally, some Arab investments have also been made in Hungary in agriculture and the food industry. As far as I am aware, these have been successful. Hungary’s agricultural and food industry technology is world-class, and cooperation with us in this field may likewise offer good opportunities.
Finally, Ladies and Gentlemen, I would like you to know that we regard cooperation with your countries as a strategic issue. So we would not only like to build stable relations with you in the short or medium term, but also in the long term, and we would like you to become a part of the Hungarian economy. The truth is that politicians today do not know what the next fifteen to twenty years hold in store for the world. We do not like to admit this because we politicians tend to believe that it is also our duty to know the future. But we actually know far less about the future than we tend to think. There are changes with impacts which simply cannot be assessed: the rise of China; the poor state of Europe; the emergence of new exploration and extraction technologies on the American energy market; changes which redraw the energy map of the world economy; free trade negotiations. We have here on the table in Europe the draft of a free trade agreement between America and the European continent. These are all developments which will redraw our world. Whether or not we shall be successful in this new world that is currently taking shape, and who the losers in these processes will be, no one can tell today – or at least no one can tell with certainty. I believe we do know one thing, however. We know that those who close their doors will lose out. We believe that the losers will be those who react to changes in the world with alarm and choose to stay out of the new system of international relations which is currently unfolding. And we also believe that the countries which will succeed are those which are open to cooperation, which receive investors and business partners from all over the world, and which seek to forge friendships with businesspeople and political leaders in distant countries. It is certain that this is what it takes to succeed.
Ladies and Gentlemen,
Therefore we Hungarians believe that cooperation with your world, the Arab world, is one of the guarantors of our success. And perhaps I can also say that if you want to be successful in Europe – or at least seek to be successful here – this will not be possible without cooperation with the Central European region. So I sincerely believe that the Arab world may contribute to our success, and I hope that to some degree our region may also contribute to the continued success of the Arab world in the new global order which is currently unfolding, and about which we as yet know so little.
Allow me once more to extend my warmest welcome to you in Budapest. Welcome to Hungary. Thank you for coming here. Enjoy your stay. We are honoured to be your hosts.