HUF 2100 Billion needs to be drawn down from Brussels this year

Prime Minister’s Office

János Lázár

Minister of Prime Minister’s Office

János Lázár, who is currently in Brussels, said the fact that Hungary needs to draw down 2100 billion forints (EUR 6.5bn) in European Union funding this year is a significant challenge.

The Minister in Charge of the Prime Minister’s Office told the press that Hungary had paid out a total of HUF 6880 billion (EUR 21.4bn) prior to December 2014, with HUF 1863bn (EUR 5.8bn) paid out last year alone. This means that Hungary has distributed 80 percent of the available budget for the 2007-2013 period, 75 percent of which has already been transferred by Brussels.

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Photo: Minister János Lázár and EU Commissioner for Regional Policy Corina Cretu, from Romania. Source: MTI/European Commission/Jennifer Jacquemart

According to Minister Lázár, Hungary has also performed particularly well in this field over the past two years and Brussels has expressed its acknowledgement of the Hungarian team working to facilitate the distribution of funding.

Mr. Lázár explained that the administration had succeeded in developing an excellent working relationship with the previous Commissioner for Regional Policy, Johannes Hahn, and he would like to maintain a similar relationship with the new Commissioner, Corina Cretu, in addition to which the Ministry is working to ensure that there is continuous dialogue between the Government, development policy experts and the European Commission in the interests of successfully bringing the 2007-2013 financing period to a close.

The Minister also mentioned that EU funding had contributed tangibly to the growth of the Hungarian economy again last year, and both the schedule according to which Brussels transfers monies this year and the speed with which the Government succeeds in distributing funding to beneficiaries will have a similarly important influence on the economy this year.

New Operational Programme tenders to be launched in April

During his meeting with Commissioner Cretu, Minister Lázár also discussed the approval of Operational Programmes (OPs) for the 2014-2020 financing period, with relation to which he told the press that the Commission had already “de facto” approved six of the OPs submitted by the Government, and the launching of related tenders could begin as early as April.

Mr. Lázár said that the Operational Programmes for rural development, fisheries and the modernisation of public administration were still under review, in addition to which he also mentioned that the Brussels body had asked the Government to provide a new public procurement plan, which it had duly submitted in December, and which the Commission has found to be suitable for discussion and realisation. In accordance with the changes, a new Act on Public Procurement and a new system of implementation regulations will be introduced in Hungary.

The new public procurement practices are important to help reduce bureaucracy, make the distribution system for EU funding fully transparent and thus ensure that to all intents and purposes there cannot be even a suspicion of corruption, Minister Lázár underlined.

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Photo: MTI/European Commission/Jennifer Jacquemart

The Prime Minister’s Office would like to bring the “asphalt issue” to a close this year

The Minister also mentioned that he would like to bring the so-called “asphalt issue”, which could potentially determine the fate of over 100 billion forints (EUR 311 million), to a close by the end of the year.

He reminded the press that the European Commission had determined with relation to previously authorised road construction projects that Hungarian tenders had infringed on competition regulations and had recommended that if Hungary accepts the findings then it should pay a 25 percent so-called correction totalling 100-150 billion forints.

This recommendation was not accepted by the Government, because it does not view re-opening of previously authorised projects as fair, in addition to which the administration claims that in certain cases the presence of an asphalt plant in the vicinity of the road works led to the construction of a higher quality road. Brussels found fault with the fact that in certain cases only companies which had an asphalt production site in the area of the road works in question could take part in the related tender.

According to the Minister, the national budget would find it difficult to handle the unscheduled payment of a 300-500 million euro fine, but Mr. Lázár also said that it would seem the Commission is to a certain extent acknowledging the Hungarian standpoint. The Government has asked the Commission for a hearing on the issue, but the meeting it not expected to take place before March.

(Prime Minister's Office, MTI)

Another record year expected in EU funding disbursements

Prime Minister’s Office

János Lázár

Minister of Prime Minister’s Office

Hungary will not lose a cent of European Union funding if it draws down 2,100 billion forints (EUR 6.6bn) and fulfills plans to pay out another record sum, Deputy State Secretary for Development Policy Communication Nándor Csepreghy said on Monday.

Nándor Csepreghy told public television M1 that a total of 1,863 billion forints of EU support was disbursed last year, twice as much as the 2007-2012 total.

The Government has simplified administrative procedures for applicants to draw down support. The new system has been basically set up to make funding applications easier in the 2014-2020 period, though the new rules were already applicable for the implementation of 2007-2013 projects, the Deputy State Secretary said.

The focus of development policy in the upcoming period will be economic development and job creation, he underlined.

He also noted that Hungary has submitted ten Operational Programmes (OPs) for the 2014-2020 financing period to the European Commission, out of which six have been approved, adding that the launching of related tenders could begin in March-April.

(Prime Minister's Office, MTI)

The Hungarians have good reason to trust in Mercedes

The Prime Minister

Viktor Orbán

The Prime Minister

“There are six thousand companies founded fully or partly with German capital operating in Hungary, which influence the lives of over one million Hungarians”, Prime Minister said on Tuesday in Kecskemét at the event organised to mark the launch of serial production of the new Mercedes-Benz CLA Shooting Brake.

“A new model every year: the plant could easily have chosen this slogan”, the Prime Minister Viktor Orbán said referring to the fact that the plant in Kecskemét is one of the very few for which parent company Daimler develops a new model for serial production practically every single year.

At the event, Mr. Orbán pointed out that following the economic crisis it was Mercedes who gave the Hungarians the opportunity “to place our homeland back on Europe’s economic map”, and so “the Hungarians have good reason to trust in Mercedes”, the Prime Minister continued, adding that the Kecskemét investment had generated international confidence in Hungary.

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Photo: Károly Árvai

“Our philosophy for governing the nation may be summed up in three words: trust, opportunity and duty”, the Prime Minister said, explaining that “in our view, our greatest duty is to successfully harness the country’s opportunities for the Hungarian people who have given us their vote of confidence.”

“Since Europe’s economy is still standing on shaky legs, our goal is for Hungary to continue to be a strong and dependable place where the economy is performing well and growing”, Mr. Orbán asserted.

Not only has the Hungarian economy made a turn for the better recently, but so have the employment figures, he added.

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Photo: Károly Árvai

There are currently a total of 6000 companies founded fully or partly with German capital operating in Hungary, and which provide a living to a total of 300 thousand Hungarian families, the Prime Minister said, stressing the importance of German enterprises in Hungary.

Today, every thinking person can see that we are on the right track; Hungary’s finances are in order, we have provided families with financial security and have reformed our vocational training system and job market, he continued, adding that more and more international enterprises know that if they come to Hungary and place their confidence in the people of Hungary, then they will achieve success.

Mr. Orbán thanked the almost 4000 people employed at the Kecskemét plant for their work to enable the launch of the new model and expressed his gratitude to the company’s directors for their confidence in Hungary and the Hungarian people.

(Prime Minister's Office, MTI)

Prime Minister Orbán to attend Sunday commemoration for Paris victims

Prime Minister Viktor Orbán was honoured to accept the French government's invitation to attend a commemoration for the victims of the Paris terror attack.

He will participate in a large-scale memorial march starting in Paris at 3pm.

In the letter of invitation, the French government expressed its gratitude for the sympathies and solidarity Hungarian leaders and Hungarian people had extended following the attack.

German Chancellor Angela Merkel, British Prime Minister David Cameron, Italian Prime Minister Matteo Renzi, Spanish Prime Minister Mariano Rajoy as well as President of the European Council Donald Tusk, among others, are also expected to be present at the event.

(Prime Minister's Office)

Our goal is to reinforce the financial stability of Hungarian families

The Prime Minister

Viktor Orbán

The Prime Minister

In his Friday morning interview given to public Kossuth Radio, Prime Minister Viktor Orbán said the Government in the next three years will focus on improving the financial positions of wage-earning families.

The task of the previous term was to fight back the effects of the economic crises and to re-establish the national sovereignty of the country, he underlined, adding that the most important goal of the present cycle is to reinforce the financial stability of those Hungarian families that earn their livings through work. The goal is to help more and more people to become part of the middle class, Prime Minister Orbán said.

With regard to the education system, Viktor Orbán stated that it does indeed face difficulties, both structural and social ones; however, a number of elements of it have been reformed: the career model for teachers, the reform of teacher training and the compulsory education of children as of the age of 3. In the other crucial issues of this field the discussions to be carried out have been very thoroughly prepared and planned, he added.

The Prime Minister also highlighted that another priority is to improve the reimbursement of general practitioners, so that it will reflect the hard work they do. A further goal is to enhance healthy lifestyles; that is why daily physical education classes have been introduced in schools, sports establishments have been supported and public parks where people can do sports are being created.

Concerning the new road toll system, the Prime Minister pointed out that it is currently on a "test run". The county-based ticket is widely supported, as it is cost-effective; however, this is the time when everybody is encouraged to raise their voices. At the end of the trial period the Government will assess experiences and come to a "reasonable" conclusion.

The governance tasks are being carried out as usual; it is the field of politics where there are more conflicts. The protests that we see today are not about the Government, the Prime Minister explained, they are about the struggle of the opposition. This phenomenon is a natural one; we will see the currently apparent forceful ways of expressions as long as the opposition finds its final form, he concluded.

Regarding upcoming diplomatic meetings, Prime Minister Orbán said the visits by Chancellor Angela Merkel and President Vladimir Putin are in "different phases". He meets Chancellor Merkel every two months in Brussels, thus this appears "less unusual" for Hungarians. The visit also has a date and agenda set, whereas the visit by President Putin is only planned without decisions made on the time and subjects to be discussed as yet. Viktor Orbán insisted that Hungary needs secure ties with both Germany and Russia.

When thinking about the meeting with President Putin, the interests of the Hungarian people are taken into account: to be safe from conflicts at a time of cold-war like circumstances. At the same time, we have to fulfill our obligations as members of the European Union and NATO, he underlined.

As for Hungary-US relations, the Prime Minister said there are no new developments on any level in the matter concerning the President of NAV and Chargé d’Affairs André Goodfriend. Concerning expectations of the coming weeks, we hope that the situation will improve as the current one is not serving the interests of anybody and pushes positive aspects of otherwise successful relations to the USA in the background, he said.

The Prime Minister also expressed his deepest condolences regarding the terrorist attack of Wednesday, calling it a brutal and barbaric outrage that no words can describe.

According to the report of the Hungarian Counter Terrorism Centre, there is no increased danger in Hungary; however, we face an era where everything is uncertain, therefore the Government must aim at ensuring security in the country, he said.

(Prime Minister's Office)

The Ministry of Justice offers its sympathy to France

Ministry of Justice

László Trócsányi

Minister of Justice

Minister of Justice László Trócsányi sent a letter of condolence to His Excellency Roland Galharague, Ambassador of France to Budapest after the brutal attack on the editorial board of French weekly Charlie Hebdo.

The Ministry condemns most firmly those acts of hatred that threaten the basic values of our democratic culture. Minister Trócsányi expressed his solidarity in the fight against terrorism and offered his and his colleagues’ sympathy to the family members of the victims wishing quick and full recovery to the injured.

Parliamentary State Secretary Róbert Répássy and State Secretary Gergely Patyi participated at the commemorial event organised at the Institut Français of Budapest.

(Ministry of Justice)

Hungary closed record year in the absorption of EU funds in 2014

Prime Minister’s Office

János Lázár

Minister of Prime Minister’s Office

January 8, 2015 2:17 PM

Hungary closed a record year in the absorption of EU development funds in 2014. Based on relevant data, the 100 per cent absorption of the funds available during the previous fiscal period is almost certain, Deputy State Secretary for Development Policy Communication Nándor Csepreghy announced.

Based on end-of-December 2014 data, HUF 1,845 billion has already been disbursed; however, this figure may increase somewhat as due to the holidays, the Hungarian State Treasury may still receive further confirmations from commercial banks  - the Deputy State Secretary said.

Nándor Csepreghy stressed: altogether Hungary has disbursed HUF 6,865 billion from the development funds made available during the 2007-2013 period. Based on the Government’s expectations, Hungary will have almost certainly attained the 100% absorption target in respect of the development funds made available to Hungary during the 2007-2013 EU development cycle, given that in 2015 less money will have to be disbursed than in previous years and additionally, beneficiaries will complete and account for a much larger number of calls.

The Deputy State Secretary takes the view that Hungary may be the first Member State to use 100 per cent of the available development funds. Nándor Csepreghy pointed out that the negative projections concerning a major loss of EU funds have proved to be wrong as Hungary has out-performed the pro rata level by some HUF 150 billion.

The disbursements of the 2007-2013 period will be closed in 2015, the Deputy State Secretary said, and added that the Government had authorised a higher commitment level in the absorption of EU funds in order to guarantee a 100 per cent absorption rate even in the event of the failure of some projects. This year, parallel to the closure of the 2007-2013 multiannual period, more and more calls will be announced for the absorption of the 2014-2020 development funds.

At the end of 2014 the spokesperson of the European Commission said that most of the Hungarian operational programmes have been approved on a professional level, however, the official notification has not yet arrived. Once the approval is official, the Government may immediately place the issue of calls for the new development period on the agenda, Nándor Csepreghy said.

(Prime Minister's Office)

CEPOL is the first EU institution to have its headquarters in Hungary

The Prime Minister

Viktor Orbán

The Prime Minister

V4-Switzerland Summit in Bratislava

December 10, 2014 1:16 PM

Hungary wishes not simply to observe, but to shape what is happening on Europe’s eastern borders, Prime Minister Viktor Orbán declared at the Summit of the Visegrád Four (V4) and the President of the Swiss Confederation on Tuesday in Bratislava (Slovakia).

It was a strategic error not to have constructed the pipelines of the north-south energy corridor over the past 25 years, because the corridor is also important from the perspective of security, the Prime Minister declared.

Mr. Orbán explained that Hungary is working to make sure that projects that enable the construction of the energy corridor are also included in the current economic stimulus package, the so-called Juncker package.

The Prime Minister called the conflict in Ukraine, which was the other main topic of the meeting, “Europe’s great challenge”, because it foreshadows the question of whether the Europeans are capable of establishing peace on Europe’s eastern borders.

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Photo: Szilárd Koszticsák/MTI

Hungary is doing everything possible in the interests of achieving peace, he added.

At the press conference following the summit, President of the Swiss Confederation Didier Burkhalter stressed the importance of concurrently achieving both security and growth, and highlighted the importance of European security, which “must be a joint project of the Europeans”.

The Swiss politician also pointed out that the heads of government attending the OSCE (Organisation for Security and Cooperation in Europe) meeting in Basel, Switzerland, had voted in favour of implementing the Minsk Protocol and had agreed to set up a separate working group to ensure the implementation of the agreement.

At the Bratislava meeting of the V4, the Prime Ministers of the Visegrád Group pointed out the importance of Swiss investments in Europe, and with reference to the order of magnitude of those investments voiced their request that the V4 should benefit more from them in accordance with the Group’s significant role.

The Summit’s participants also adopted a joint statement in which, among others, they declared their support for the security of the region.

(Prime Minister's Office, MTI)

Growth requires stepping beyond traditional dogmas, Prime Minister says

The Prime Minister

Viktor Orbán

The Prime Minister

December 15, 2014 12:55 PM

Hungary has proven that in order to stimulate economic growth, several traditional economic dogmas should be transcended, Prime Minister Viktor Orbán told the Serbian Tanjug news agency ahead of a China-Central Europe summit in Belgrade.

It is a common viewpoint in Europe that within several years Central Europe will become the engine of economic growth within the European Union, the Prime Minister underlined.

In recent years, Hungary has become a leading country in Central and Eastern Europe, and besides its adherence to strict budgetary discipline it is now among the states that produce the fastest economic growth, he highlighted. Hungary is expected to have achieved growth of 3 percent this year.

Not only has Hungary emerged from the economic crisis, but it has changed its attitude towards the crisis by considering it an opportunity rather than a problem, the Prime Minister said, adding that Hungary's political stability proves that it has not only survived the crisis but has actually gained strength during the difficult period.

The Prime Minister’s written statement noted that employment has reached a 22-year record, adding that the Government’s objective is to ensure that the number of people with jobs increases to 5 million.

It was also underlined by the Prime Minister that public debt has been on a decreasing trajectory and the budget deficit is being kept under 3 percent, as a result of which the European Union has abrogated its excessive deficit procedure against Hungary.

Viktor Orbán concluded that Hungary has proven that economic growth can be boosted and new jobs can be created while at the same time curbing public debt and the budget deficit.

The Belgrade summit will take place on 16-17 December with the participation of 16 Heads of Government.

(Prime Minister's Office, MTI)

Most important milestone of the EU-China cooperation reached

Prime Minister’s Office

János Lázár

Minister of Prime Minister’s Office

December 18, 2014 3:30 PM

By signing the agreement on the construction of the Budapest-Belgrade rail line, we have reached the most important milestone of the cooperation between the EU and China, Prime Minister Viktor Orbán underlined after the signing ceremony held on Wednesday in Belgrade.

The agreement on the construction of the high-speed rail line was signed by the Prime Ministers of Hungary, Serbia, China and Macedonia.

Viktor Orbán pointed out that this new rail line will allow the exploitation of Hungary’s advantageous geographical position.

This agreement points beyond itself as thus “we succeeded in showing how China and the EU will be able to cooperate to the benefit of all parties”, the Hungarian Prime Minister explained.

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Photo: Barna Burger

According to Chinese Prime Minister Li Keqiang, the rail line connecting the two capitals is beneficial to both countries, not only from a development point of view, but also in terms of the population’s quality of life.

As a result of the new agreement, the interests of China, and of the Eastern European countries will be better and faster served, which may give a push to the economies of the countries concerned. The European Union is the most important trade partner of China and with the help of the rail line construction the economic relations may be further extended, the Chinese Prime Minister emphasized.

Serbian Prime Minsister Aleksandar Vučić also underlined the improvement of the relations of the concerned countries and their people, adding that the current journey time of eight hours may be reduced to less than two and a half hours, thus making rail transportation faster than road transportation.

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Photo: Barna Burger

Prime Minister of Macedonia Nikola Gruevski emphasized that the project is not only important for the region, but also for Europe and China as well. It will change the movement of people and of goods and it will have a significant effect on the economy, the companies and on the people, too.

After signing the agreement, Minister for Foreign Affairs and Trade Péter Szijjártó talked about the details of the project, throughout which a 334 km rail line will be reconstructed or modernized. In terms of the current agreement, the Serbian, Hungarian and Macedonian rail companies will jointly prepare an implementation schedule, while the feasibility study will be developed by China.

“According to the agreement, the Chinese party will provide the financial assistance necessary for the investment; foreseeably, we will receive a credit offer covering 85 per cent of the total investment value”, the Minister said. The first discussions on the USD 2.89 billion project were held one year ago at the Central Eastern Europe - China summit in Bucharest.

This agreement is of great importance, because from now on it will be Hungary and Serbia to provide the best transit route for the Chinese goods going to Western Europe, Szijjártó said, adding that following the implementation of the agreement, the volume of the goods going from China to Europe may also increase.

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Photo: Barna Burger

According to the plans the rail line allowing a maximum speed of 160 km/h will be inaugurated at the end of 2017.

The agreement was signed on Wednesday in the framework of the CEE-China summit, where the ministers of China, Serbia, Hungary, Slovenia, Slovakia, the Czech Republic, Romania, Latvia, Lithuania, Estonia, Bosnia and Herzegovina, Macedonia, Montenegro, Bulgaria and Albania, and the deputy ministers of Poland and Croatia have participated. The Chinese Prime Minister also held bilateral negotiations with the delegations of the summit.

(Prime Minister's Office)

Foreign policy transformation reaches halfway point

December 30, 2014 12:37 PM

The ongoing transformation of Hungary's foreign policy aimed at enforcing the country's economic interests more effectively has reached the halfway point, Minister of Foreign Affairs and Trade Péter Szijjártó stated in an interview to Hungarian news agency MTI.

"The world has substantially changed and this means Hungary's foreign policy must change both institutionally and in its approach," emphasised the Minister, who entered office in late September.

The government has already carried out the biggest change, namely integrating the institutions overseeing external economic relations and cultural diplomacy into the foreign ministry's structure. All institutional conditions are now in place for Hungary to achieve its goals of taking a leading position in the EU in terms of the export-GDP ratio and the contribution of industry to the national economy. Hungary can also now assume poll position in central Europe in terms of per capita direct foreign capital investment, the Minister stated.

Péter Szijjártó also stressed that Hungary should pursue a pragmatic foreign policy, no one blames the United States for maintaining close economic cooperation with China or any western European nation for fostering good ties with countries in the Far East. Yet cooperation between China and central Europe is a target of criticism even if China's trade turnover with the 16 CEE countries falls short of its trade with Italy, he argued.

The Minister highlighted that ethnic Hungarian communities in neighbouring countries have an interest in smooth relations between Hungary and its neighbours. Common achievements may build a degree of confidence, enabling these nations to resolve what seem to be tough disputes, he said.
Among achievements with Slovakia, Péter Szijjártó mentioned the construction of new border-crossing points and more intense economic links between border regions.

Romania is a strategic partner for Hungary and its second biggest export market, trailing only Germany, he said, adding that further efforts would be required to bring about tangible improvements in the situation of Romania's ethnic Hungarian community.

Péter Szijjártó called Hungarian-Serbian relations "harmonious", noting that all fields of cooperation had benefitted from recent historic reconciliation.
The minister stressed the need to settle the Russian-Ukrainian conflict through negotiations as soon as possible. A rapid, negotiated settlement also lies in the interest of Europe which, in the long term, needs to cooperate with Russia "in a correct way, on the basis of respect for one another and for international law" pointed out the Minister.

Péter Szijjártó called the Visegrad Four cooperation a major resource for Hungary, all the more so since central Europe would, he said, surely remain an engine of growth in Europe.

Concerning EU affairs, Szijjártó stated that with the new election of a new leadership Europe had finally got a chance to concentrate on long-term efforts to regain its competitiveness and establish strategic cooperation with the fastest-growing regions of the world.

The Minister said it was regrettable that the South Stream gas pipeline project had been scrapped. Hungary now needs to find new sources to ensure the security of its energy supplies, he said. He reiterated that the Hungarian-Russian deal on upgrading the Paks nuclear power plant fully complied with the EU regulations, there would be no need for any EU interference.

Péter Szijjártó said that one should not expect the policy of Eastern Opening yield spectacular achievements overnight. He added, however, that Hungarian exports to China, Japan, South Korea, Vietnam, Turkey, Macedonia, Serbia, Egypt and Morocco had increased.

(Ministry of Foreign Affairs and Trade)