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Colleen Bell Appointed Us Ambassador to Hungary AM DECEMBER 3, 2014 EDITORS: [email protected] ¬ WWW.HUNGARYMATTERS.HU MORNING ISSUE PHOTO OF THE DAY UPCOMING EVENTS Transparency International publishes Corruption Perceptions Index Plenary session of Parliament Israeli Film Week opens Presser on European Women’s Handball Championship to be co- hosted by Hungary, Croatia Stats office releases Q3 2014 GDP figures MTI/Bea Kallos Paralympic fencer Gyöngyi Dani with her son on December 3, the International Day of People with Disability TOP STORY COLLEEN BELL APPOINTED US AMBASSADOR TO HUNGARY The United States Senate has approved the nomination of television producer Colleen Bradley Bell as US ambassador to Hungary. The appointment was approved in a vote of 52 to 42, with Democrats voting for and Republicans against the nominee. The Hungarian foreign ministry had already approved Bell’s appointment last year. John McCain, a Republican senator and former US presidential candidate, delivered a stormy address in the Senate before the vote, attacking Bell’s candidacy. He said she was a “totally unsuitable” nominee to a “very important country where bad things are going on.” He underlined Bell’s lack of expertise. “Hungary is a close ally in many respects, but there’s no doubt that since taking office in 2010, the Hungarian Prime Minister Viktor Orban has centralized power,” McCain said, adding that critics say Orban’s measures go against democratic principles. Orban “has reduced the independence of Hungary’s courts, pushed through controversial changes in the constitution and placed acute restrictions on nongovernmental organizations,” he added. He charged that Orban had been “cozying up” to Vladimir Putin, with whom he had signed a nuclear pact and “is practicing the same kind of antidemocratic practices” as his role model. Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA) with content provided by MTI Corp. MTVA exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use, educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and are not aimed at financial gain, even indirectly, and the source name are indicated at all times. All rights reserved. Enquiries should be made to the English Help Desk at +361 441 9340 For MTI’s real time coverage please visit http://english.mti.hu, http://econews.hu DECEMBER 3, 2014 MORNING ISSUE AM key to reviving growth in a sustainable Concerning the actual options, EC: HUNGARY ON TRACK manner. It pointed out the need to Szijjártó mentioned gas imported from FOR DEFICIT TARGET, NOT improve banks’ capital accumulation Azerbaijan, but added that further ON DEBT capacity and enhance the effort to opportunities should also be identified. clean up portfolios. During a recent visit to Hungary The European Commission said Hungary “In the light of the progressively by Ilham Aliyev, the president of is “on track” to achieving this year’s increased tax and regulatory burden Azerbaijan, the option of transporting deficit target of 2.9% of gross domestic on the financial sector, the advocated gas to Central Europe through the product (GDP), but added that state policy adjustment should include southern energy corridor was raised, debt is “not yet on a firm downward a reduction in this burden to bring Szijjártó said in Brussels, where he path” in a memo following a post- it more in line with the European was attending a meeting of NATO programme surveillance mission to the average,” it said. foreign ministers. However, he added, country. The EC said that the projected The EC also stressed that a big state in this project interconnectors play a pace of debt reduction “appears at risk stake in the banking sector “has the large role, and not many of them are of breaching the requirements of the potential to expose public finances to completed as yet. Stability and Growth Pact”. a contingent liability”. Szijjártó said it must be ensured The EC welcomed the government’s The EC mission called for “a stable and that the 300-billion-euro investment decision to lower the deficit target for more balanced corporate tax system” fund put forward by the European 2015, but noted “important concerns and criticised Hungary’s increased Commission would leave funding for regarding the substantiation of a reliance on sector-specific taxes. projects set to improve the region’s number of revenue-increasing measures It urged “more predictable and energy security. contained in the 2015 draft budget”. competitiveness-oriented policies”. Asked about plans for liquefied gas “The sustainability of the fiscal The mission visited Hungary from transfers from Croatia, Szijjártó said adjustment would benefit from November 25 to 28 to review recent Hungary strongly urged Croatia to the further reinforcement of fiscal economic and financial developments take steps towards this option, first governance,” it added. and policy initiatives. by building the necessary terminals, The EC acknowledged that and second, by making it possible for Hungary’s GDP growth rate had SZIJJÁRTÓ CALLS FOR NEW gas to be transferred not only from been one of the highest in the ENERGY SUPPLY OPTIONS Hungary to Croatia, but also the other European Union in recent quarters, AFTER RUSSIAN PIPELINE way around. but it attributed the growth, in part, DECISION to increased absorption of EU funds OPPOSITION PARTIES at the end of the 2007-2013 funding Hungary will need to find new sources LAMBAST GOVT FOR period, and “short-term stimulus to ensure the security of its energy BACKING SOUTH STREAM measures”, such as a central bank supplies for the long term, Foreign programme providing cheap credit to Minister Péter Szijjártó said, in reaction to Opposition Socialist MEP Tibor Szanyi said SMEs, cuts in households utility prices news that Russia was dropping plans for that Russian President Vladimir Putin’s and the expansion of a fostered work the South Stream gas pipeline project. Monday announcement of cancelling the programme. “Russia had the right to make planned South Stream gas pipeline was a The EC said “restoring normal that decision and Hungary has “merciless slap in the face” for Hungarian operation” of the banking system was acknowledged the move,” he said. Prime Minister Viktor Orbán. Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA) with content provided by MTI Corp. MTVA exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use, educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and are not aimed at financial gain, even indirectly, and the source name are indicated at all times. All rights reserved. Enquiries should be made to the English Help Desk at +361 441 9340 2 For MTI’s real time coverage please visit http://english.mti.hu, http://econews.hu DECEMBER 3, 2014 MORNING ISSUE AM Szanyi told a press conference in In 2015 Hungary will participate in Csepreghy, deputy state secretary at Brussels that the announcement meant the largest NATO military exercise of the prime minister’s office, said. the failure of a targeted project in Orbán’s recent years. Further, it has doubled its As an example for the changes, policy for the east. He added that despite strength in the international mission in the official said that in future not Orbán being “the last European ally of Kosovo, will expand the Pápa air base only those companies can bid for a Putin’s autocracy”, now all the energetic to meet the logistics requirements hospital construction that have built preparations by Orbán’s government included in the action plan and plans to hospitals before, but any venture that have abruptly ended “by a snap”. increase defence spending from 0.8% has experience in building public Democratic Coalition (DK) leader of GDP in 2016 to 1.4% by 2022, he said. institutions of a similar size. Ferenc Gyurcsány said that the policy Hungary is dedicated to accelerating As for the required references, it of Eastern Opening “had sprung a NATO expansion because the will be sufficient for bidders to attach huge leak”. organisation can best respond statements in the bidding phase, while “Those who base Hungary’s foreign to challenges if it guarantees the winners will be required to submit policy on a weakening and isolated perspective of Euro-Atlantic integration official certificates of their past projects Russia doom their nation to failure,” to countries that support NATO’s efforts at a later stage, Csepreghy said. he said. and share the member countries’ The simpler procedures will also The Russian decision demonstrates common interests, Szijjártó said. ensure that more bidders participate that Hungary’s foreign and economic On the sidelines of the summit, in public procurement than before, policy has become a “punch bag”, and Szijjártó assured his Ukrainian which may make the actual projects it had got the biggest slap in the face counterpart of Hungary’s commitment cheaper, he added. from where it expected it the least, to Ukraine’s territorial integrity and Gyurcsány said. sovereignty. He called it Hungary’s CONFERENCE, EXHIBITION The decision put the planned “absolute interest” that Ukraine should ON TIMISOARA UPRISING upgrade of the Paks nuclear plant into be a politically and economically a new light, and the time might soon sustainable and strong neighbour. László Tőkés, a former Reformed come that Russia will have to cancel Additionally, Ukraine should also devote bishop and a hero of Romania’s 1989 the agreement, he added.
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