Budapest - News from Hungary

Hungary is the 17th EU country recognizing the independent Kosovo

Linda — Wed, 19 Mar 2008 17:30:00 +01:00

March 19, 2008

Hungary has recognized the newly independent Kosovo in conjunction with Bulgaria and Croatia. Hungary, Bulgaria and Croatia issued a joint statement stressing that “all three are interested in furthering relations with an economically developing Serbia that fosters good relations with its neighbors and maintains its European orientation”. The Hungarian government has asked Foreign Minister Kinga Göncz to make a presentation to President László Sólyom on establishing diplomatic relations with Kosovo. If all goes according to plan, Hungary's diplomatic mission in Pristina will be transformed into an embassy.

Serb Foreign Minister Vuk Jeremic, currently on a visit to Athens, said those countries that recognize Kosovo’s independence cannot count on good relations with Serbia. Serbia sent diplomatic notes of protest to Hungary, Croatia and Bulgaria and recalled its ambassadors. The Serbian embassy expressed “deep disappointment” over the decision, saying it could adversely affect bilateral relations. Hungarian Foreign Ministry said in response that the ministry had hoped this would not happen, but was not surprised. Serbia does not currently have an ambassador in Budapest, as the term of Predrag Cudic ended last month, and his successor, Dejan Sahovic, has not yet arrived, as Hungary’s decision was expected. Hungary does not plan to recall its ambassador to Serbia.

István Pásztor, president of the Voivodina Hungarian Alliance, asked the Serb government to guarantee the safety of 300,000 ethnic Hungarians in the province. Police were placed on alert in Hungarian-inhabited areas.

Hungary backs EU majority on Kosovo
February 19, 2008

After the EU foreign ministers decided that the member states can themselves decide whether or not to recognize Kosovo’s independence, Hungary joined the majority group of EU states intending to recognize Kosovo, which declared its independence from Serbia on Sunday. Only 17 of the 27 member states are prepared to launch the process of establishing official relations. The US was the first country to announce its recognition of Kosovo.

Despite the foreseeable recognition of Kosovo in one or two weeks, the sustained good relationship with the neighboring Serbia continues to be viewed as of prime importance to Hungary.

Hungary to take on leadership role in Kosovo next summer
December 15, 2007

Hungary's role in Kosovo will shift to leading a manouvering batallion in western Kosovo next summer, Hungarian Defence Minister Imre Szekeres said on Saturday, starting a two-day visit to Kosovo. The 370-strong Hungarian unit will take over security, patrolling, reconnaissance and checkpoint tasks in a NATO batallion, working together with Italians and Slovenes. The troops will operate in one-fifth of Kosovo's whole area, Szekeres said.

Szekeres said this was a momentous change, as it will be the first time for Hungarians to lead a multi-national unit in a foreign mission. Costs of the new mission will be unchanged - 500 million forints (about 1.97 million euros) a year.

Kosovo divides Visegrád Four
December 11, 2007

The issue of independence for Kosovo split the four prime ministers of the Visegrád group of countries at their summit in Ostrava, in the Czech Republic. Kosovo is widely expected to declare independence following the failure of negotiations with Serbia.

Slovakia is reluctant to recognise an independent Kosovo, although Prime Minister Robert Fico, who pronounced a categorical No last week, said on Monday that “It would be extremely difficult for Slovakia to accept Kosovo’s independence if it proclaims it by ignoring the wishes of the international community”. Fico said no matter how the issue is solved, the case must be treated as unique.

Hungarian Prime Minister Ferenc Gyurcsány said Kosovo’s drive towards independence is irreversible. He added that independence should occur with EU assistance, as Kosovo is not a concern of the US. No peace can be maintained in the Balkans without the realistic options of autonomy and independence. The prime minister stressed the need to make further advances towards peace and prosperity in the region. "Kosovo should not be abandoned but we also have to consider Serbia's problems," he said. He believed there was a good chance for the European Union member states to establish a common denominator regarding the future of Kosovo. "This will probably be a compromise which is as it should be," he said.

Czech leader Mirek Topolanek said Serbia must not be left out of decisions, as it is in the EU’s interest to see Serbia feel secure.

U.S. - Hungary has signed a memorandum on visa waivers

Linda — Mon, 17 Mar 2008 11:21:00 +01:00

March 17, 2008

A memorandum of understanding (MOU) was signed in Washington on March 17 paving the way to the introduction of visa waivers for Hungarians from early next year.

The MOU, similar to what the Check Republic has signed recently, is part of a series of agreements to be submitted to the U.S. Congress for approval. The two governments are expected to hold talks in Budapest in the next few weeks on allowing US air marshals on US-bound flights, on cooperation against organized crime and terrorism, and on stolen and lost passports.

Visa exemption will apply only those traveling to the U.S. as tourists or for business purposes. Entry visas for Hungarian visitors will be replaced by an electronic form, similar to the ones passengers are asked to fill on the plane on their way to the US.

“We must reach further agreements regarding practical implementation, and the Americans must have the necessary technical conditions in place,” Ambassador of Hungary to the U.S. Ferenc Somogyi said, explaining that the US wants to electronically register those leaving Hungary.

Krisztina Berta, head of the consular department at the Foreign Ministry, said it is likely that there will be no fees in the new system, she added.

In order for Hungary to join the U.S. visa-waiver programme, the percentage of rejections among Hungarians that apply for visas must fall below 10 percent. According to State Department data released last November, Hungary's visa refusal rate had exceeded the 10 percent ratio by three tenths of a percent in the twelve months from September 2006 to September 2007.

U.S. Ambassador to Hungary April H. Foley said last December that Hungary would certainly fulfil the 10 percent target in 2008.

Visa requirement not quite fulfilled

November 8, 2007

Hungary narrowly failed to reach the threshold for the removal of US visa requirements last year. In all, 10.3% of visa applications were rejected, only slightly above the maximum permitted 10%.

Some other countries in the bid for a visa waiver with the U.S. have managed to meet this requirement, among them Greece (1.6 percent), Cyprus (1.8 percent), Malta (2.7 percent), Estonia (4 percent) and the Czech Republic (6.7 percent). Poland fared much below the threshold at 25.2 percent and Romania had a 37.7 percent rejection rate during that period.

Diplomats expect Hungary can pass under the 10 percent mark by the autumn of 2008, the paper said.

The European Union has demanded a visa-free regime with the U.S. for all of its member states, but the actual installment is subject to negotiations.

New U.S. law brings us closer to the Visa Waiver Programme
August 29, 2007

Hungary hails the new U.S. law, including the option of extending the Visa Waiver Programme to Hungarians, as a major step forward, Hungarian Foreign Affairs Spokesman Gyorgy Odze told MTI. Odze commented the bill U.S. President George W Bush signed into law, which, according to the White House release, allows greater flexibility to bring some of the U.S.'s closest allies into the programme.

Hungarian diplomacy has been lobbying the U.S. administration and legislation consistently and for long to promote lifting the visa requirement to bring Hungary to equal platform with other close allies of the United States in combating terrorism, the spokesman said. Regarding a timeline the spokesman said it was yet hard to say exactly how soon would Hungarians be able to travel without a visa to the United States but expressed hope for the legislation procedures to be completed within one-and-a-half or two years.

He also expressed the conviction that Hungary would soon be able to meet the requirement the law retained for granting the visa-free status, namely that the annual ratio of rejected visa applications should stay below ten percent. Last year U.S. authorities rejected 12.7 percent of Hungarian visa applications, whereas the visa-refusal ratio has constantly been dropping over the past few years.

Commenting the law to MTI, U.S. affairs professor Tamas Magyarics expected no breakthrough in scrapping the U.S. visa regime for Hungary and other EU-member central and eastern European countries over the next one-and-a-half years. He argued that legislation procedure in the U.S. administration took time and politicians were anyway focused entirely on next year's presidential and congressional elections. In his view, it would be hard for the CEE countries to find a partner for speeding up the process since they are considered relatively light-weight even as a bloc. A visa-free status, even if granted, would not necessarily facilitate entry into the United States as authorities there would even in that case employ other techniques to obtain the data they need, he said. In all, neither Hungarians nor the citizens of other EU newcomers would threat the political and economic stability of the United States. The true challenge the U.S. has to meet is the inflow of tens of millions of immigrants from Latin America and the Far East, said Magyarics.

End of reforms?

jj — Thu, 13 Mar 2008 16:44:00 +01:00

Last Sunday Hungarian voters have called the government to curtail its economic reforms by heavily backing a referendum that demanded abolishment of health and university fees.

A referendum initiated by the opposition Fidesz party has been attracted a surprisingly high proportion of voters, around 50% of them. This was the most visited referendum since the famous ‘four yes votes’ referendum taken place in 1989 in the phase of the democratic transformation of the country.

According to the final results more than 3 million voters backed to end the fees, including an admittedly large number of left-wing supporters. Fees have been introduced by the socialist government in June 2006 following their re-election in order to decrease budget deficit, to meet the demand of the EU for consolidation, and to hit targets set by the convergence programme.

Though win in of the ‘yes’ votes has been forecasted by pre-referendum polls, a ratio of them was far above expectations (around 80%). It seemed to be common that people are not willing to pay even a small sum (around 1.2 euros) for things that has been always free before - like visiting the doctor. On the other hand, it is typical of human nature that people usually does not like paying taxes. Especially if they are obliged to pay an extra, while a large proportion of their salaries are transferred to the national health care insurance each month.

Recent opinion polls shows a support of 15 % of the government that questions the ability of the socialists to push ahead with more reforms. It still remains open, how losses of the budget could be compensated after the abolishment of the fees that has generated around 20 milliard HUF extra-income for the health insurance found during the past year, strongly contributing to the decrease of budget deficit. The Prime Minister has already announced that the fees would be abolished on 1 April 2008, but the government has no funds available to replace the income-lost. At the same time, Viktor Orbán leader of the opposition, talks about the need of government resignation and a risk of putsch against the Prime Minister. In september another referendum is expexted to be hold for the initiation of Fidesz in order to arrest liberalisation of the health care insurance system that is to be introduced from 2009 according to a bill passed in february. Economic analysts warn that from the investors point of view outcome of the referndum may risk accomplishment of srtuctural reforms and enhance political risks that might as well hold them back from bringing their money into the country.

Following the referendum two political research institutions, the Political Capital Institute and the Századvég, has initiated a public debate on the reform and rethink of the institution of referendum. They think there is a risk that the too frequent initiations of polls make the institution of referendum become a tool of parties’ campaigning. Furthermore, they have stated in their declaration that the die-hard political competition carried out in Hungary has been becoming simplified to a zero-sum game that could has ’incalculable consequences’ on the economy and society of the country.

Hungary is holding a referendum on Sunday

Linda — Sun, 02 Mar 2008 11:42:00 +01:00

March 2, 2008

The main opposition party Fidesz and its ally the Christian Democrat Party (KDNP) initiated a referendum one and a half year ago on banning tuition, visiting and daily hospital fees. Due to the long official procedures, the referendum is scheduled to be held only on Sunday, March 9. According to the opposition, the so call "social referendum" represents the rejection of the government’s “reform rampage”, including the major heath care reform. Fidesz also claims that a successful referendum will be symbolic and “could mark a new political era. Prime Minister Gyurcsány insists though that the referendum will not affect the essence of the reforms and that parliamentary elections were not due until 2010, so the outcome was immaterial.

MSZP and the Socialists’ led cabinet launched an intense PR campaign promoting the health care reform (including the positive outcomes of the visiting fee and the daily hospital fee) and the introduction of the tuition fee in higher education. Their main reasoning says that the “the lack of any effort cannot result a strong Hungary”. The Socialists attempt to rationally persuade their supporters in the name of “common sense” and will not want voters to regard the referendum as a vote on the government and the Prime Minister. The goal is clearly to calm the general mood and keep turnout low. Their declared strategic aim is to have as low a defeat as possible, an unusual campaign message.

Fidesz has launched an emotional campaign. Fidesz is striving to elevate the political significance of the referendum by stressing the potential consequences of a valid Yes vote, such as the fall of Gyurcsány, the collapse of the Socialist Party or a change of government. The party is building on dissatisfaction with the Prime Minister.

The junior coalition partner Free Democrats (SZDSZ) has embarked on a clear negative campaign, saying the rejection of the current reforms would represent the sustention of the communist-era Kádár regime.

Green light to introducing the multi-player health insurance system in Hungary

Linda — Tue, 19 Feb 2008 08:51:00 +01:00

February 19, 2008

After long and heated debates, several public demonstrations and two votes in Parliament, President László Sólyom legally authorised the multi-player health insurance bill as he ran out all the constitutionally provided to tools to prevent it. Although he continues to have reservations about both its content and the way it was passed by Parliament.

The Health Minister announced that 22 health insurance funds will be established in a matter of weeks and by the end of 2009 are expected to merge into between seven and ten funds. She asserted that the insured “will enjoy a right to free of choice from February 15, 2009.”

Violent demonstrations followed the approval of the health insurance bill February 12, 2008

Yesterday evening the Parliament voted again on the health insurance bill that has been sent back by the President for reconsideration. Prior to the voting, five MSZP MPs’ home were attacked with Molotov cocktails by extremists during the weekend in order to persuade them to vote against the bill on Monday. No serious personal injures occurred. As predicted, the law was eventually passed by a ballot of 203-173. Only one MP from the Socialist Party (MSZP) voted against the bill claiming that it is against every social-democratic principle he believes in. He later has to face party’s ethical committee for breaking the faction rules. President Sólyom has no option but to sign the legislation within 15 days.

A group of 1,000 peaceful demonstrators gathered last evening to protest against the health insurance. The group of demonstrators later had been infiltrated by around two dozen people with face-masks and hoods. After the MPs' approval of health insurance law near 7 p.m., the group of protesters started to pelt fire-crackers at police officers and pulled down a 150-metre section of the barrier set up around Parliament Building. Riot police deployed dogs and tear gas spray to disperse the crowd and force it out of Parliament square.

Later, demonstrators gathered at various locations in downtown and were being dispersed by police, who split larger formations into smaller groups.

In her final speech before the balloting, Health Minister Ágnes Horváth said everyone will have access to necessary health care services as the health insurance funds will not be able to choose their clients.

President Sólyom returns health insurance bill to House
December 27, 2007

President László Sólyom sent the health insurance bill back to Parliament for reconsideration on December 27, declining to send it to the Constitutional Court for review. If the House passes unchanged the legislation introducing multi-player health insurance, then Sólyom will have no choice but to sign it into law.

In a statement, Sólyom said he agrees that changes are needed in health care, but warned that such large-scale reform cannot be successful without support and confidence from the majority of doctors and others working in the health care sector, or else the whole nation will become the subject of an experiment whose outcome is uncertain. He asked Parliament to address serious shortcomings in the legislative procedure and eliminate excessive risks.

Intellectuals against multi-player bill

A total of 62 intellectuals and public figures have published an open letter urging voters to persuade their MPs of the importance of rejecting the business-based health insurance system planned by the government.

Accusing the cabinet of abusing its power and causing significant damage to the whole country, the signatories say society should resist the return of methods used in the single-party era. They argue that experiences of other countries show that the privatisation reduces equal opportunity in health care, lowers its performance and makes health care services more expensive.

If the bill enters into force, the letter states, then changes will be irreversible, Hungarian health care will be subordinated to international economic law and by the time the multi-player, business-based model falls, it will be practically impossible to restore the single-insurance system.

The letter asserts that the government has resorted to dictatorial methods to fulfil its business plan and has pushed through the legislature measures intended to determine the long-term future of the nation. It has ignored nationwide protests, the well-founded opinions expressed by professional and scientific bodies and forced many governing MPs to vote against their conscience. It claims that the final text of the bill was reached in backstage bargains between the governing parties and insurance companies by skirting social consultations, and that even MPs were only given the final version of the text directly before voting on it.

The signatories include former President Ferenc Mádl, sociologist Zsuzsa Hegedűs, Gödöllő mayor György Gémesi, Liga Unions leader István Gaskó, József Sípos of the social policy section of the Socialist Party, András Lányi of the NGO Élőlánc, the Civilian Lawyers Commission, architect Imre Makovecz and TV personality Sándor Fábry.

MPs approve gov't health reform bill
December 19, 2007

Despite the strong public opposition, Hungarian MPs passed the government's health reform bill on Monday with 204 votes for, 168 against and a single abstention. The measures to introduce an element of private funding into the health-care system were seen as a major test of the Socialist-liberal governing coalition.

The government plans to introduce a multi-player health insurance system generated rarely seen public reactions around the country. Thousands of people staged several demonstrations in the last few weeks at Parliament and around Budapest to protest the health reform bill submitted to the Parliament by the governing socialist-liberal coalition. The collective hostile attitude of the public towards the reform bill unified the otherwise fragmented society. People from different political and social groups staged demonstrations together including the main opposition right wing party Fidesz, leading intellectuals from socialist groups, the country’s major unions, the chamber of Hungarian Physicians and several NGOs (Védegylet, Élőlánc etc.). A total of 21 organizations have announced that they will take part in a strike of unspecified duration and a further 30 organizations have declared support for the action. Even some Socialist MPs expressed their disagreements towards the reforms including the Speaker of the House Katalin Szili (member of the Socialist Party).

Eventually Parliament passed the bill on the transformation of the health insurance system Monday evening with the votes of the governing parties, prompting the strike organizers to call off their industrial actions “of indefinite duration” after only one day.

The pass of the health reform bill was great relief for the socialist-liberal cabinet as their coalition was obviously shaking lately along with the historically law popularity rates of the governing parties. Following the votes, Prime Minister Ferenc Gyurcsány stated that he is very proud of his party for passing the bill as this has been the most far reaching decision of the period since the change of regime, terminating the remaining vestiges of the Kádár regime.

János Kóka, leader of the junior governing liberal party SZDSZ, told journalists following the vote that the new law struck the right balance between the positive benefits of the market and security provided by the state. "The new law will ensure the continuity of national solidarity but it will also give people the chance to select the health insurer that best serves their interests," said Koka.

Health Minister Ágnes Horváth (SZDSZ) also hailed the new law, a compromise between the two coalition parties, saying, "The law will facilitate major changes in health care, providing people with benefits without doing any harm."

Tibor Navracsics, parliamentary group leader of the main opposition Fidesz said that the government was only interested in "squeezing the bill through parliament" rather than improving the nation's health.

Parliament now awaits the decision of President Laszló Sólyom, who may sign the bill into law, send it back to the House for reconsideration or seek a constitutional review if he deems it as containing major faults.

Details of the new health reform bill:
The legislation maintains a state body to oversee health insurance and guarantee the universal provision of services and allows private businesses to buy minority stakes in 22 new regional funds with the aim of enhancing efficiency and stimulating competition. If a region fails attract a private investor then the state will operate the fund. The size of the social insurance contribution will continue to be set by parliament and contributions will be collected by the tax authority, as is currently the case. Hungarian citizens will still be able to choose their GP and pediatricians. Each regional fund, a closed company limited by shares, will be set up with equity of 20 million forints (EUR 800,000) and each fund will be required to recruit half a million members. Individuals will be able to choose among the funds, but if they fail to do so they will be automatically drawn into the fund of their region. Every year patients will have the chance to change insurers.

Rába River in Hungary is still foaming despite the Austrian promises

Linda — Wed, 06 Feb 2008 11:01:00 +01:00

February 6, 2008

Austrian authorities are not honoring the bilateral agreement signed last summer on cleaning up the Rába River, Environment Minister Gábor Fodor told reporters in Szentgotthárd on Tuesday. Our patience is at an end, he declared.

Pollution is continuing to flow along the Rába because the Wollsdorf tannery has not upgraded its technology to reduce pollution emissions, as promised, Fodor said, unlike other tanneries in Jennersdorf and Feldbach.

Fodor remarked that Austrian authorities have failed to disclose any information neither about the expected pollution nor about what measures they had taken against the polluters, contrary to an agreement signed last summer. He said he will take up the issue with his Austrian counterpart.

On another matter, Fodor vowed to turn to the EU if an Austrian waste incinerator is built near the Hungarian border.

Last May, President of the Republic László Sólyom described Austria's 6 year long negligence to halt the pollution on Raba as intolerable and cynical. He also underlined that this long lasting incident damages the bilateral relationships.

June 12 2007, Greenpeace activists inundated the entrance of Boxmark tannery with foam in order to demand the end of pollution.

Click here to read the history of foaming Raba in Hungarian

Hungary, Spain co-operate on nuclear research project

Linda — Tue, 22 Jan 2008 16:21:00 +01:00

January 22, 2008

While Hungary and Spain are rivals in a competition to host the headquarters of the European Union's Spallation Source ESS Project, the two countries have agreed to co-operate in certain fields. The third contestant Sweden rejected the idea of cooperation.

The ESS centre, to be built in the winning country, will employ a total of 4,000 researchers over a 40-year period. The European Spallation Source is slated to become the world´s most powerful neutron source available to researchers in fields such as materials science, nanotechnology, biosciences and engineering.

Under the agreement, member of the Hungarian Academy of Sciences Ferenc Mezei has been requested to head the joint Hungarian-Spanish programme, which will be presented in Brussels on January 24.

To see the animation of the future ESS project, click here

Hungarian MPs are first to ratify Lisbon Treaty

Linda — Mon, 17 Dec 2007 10:14:00 +01:00

December 17, 2007

Hungarian MPs approved ratification of the European Union's Lisbon Treaty on Monday, making Hungary the first EU member state to do so.

"The ratification of the Lisbon Treaty... is part of Hungary's historic achievement," Hungarian Prime Minister Ferenc Gyurcsany said in parliament. He noted that the European Union's adopting the treaty last Thursday had concluded a 10-year-long debate.

The bill proclaiming the treaty was approved with 325 votes for, five six against and 14 abstentions. The ratification law outlines the Lisbon Treaty as a common European success, guaranteeing the conditions for promoting the EU's further development and deeper integration.

MPs also approved a related resolution on protection of minority rights with 325 votes for and six against. The resolution on minority rights declares that protecting national and ethnic minorities has become a fundamental constitutional principle of the European Union, which covers the joint exercise of rights by persons belonging to a national or an ethnic minority.

Hungarian Government adopts Europe-policy until 2014
August 3, 2007

The government adopted Hungary's Europe-policy for the period until 2014. The policy was subjected to widespread social coordination before it was adopted, government spokesperson said.

Foreign Minister Kinga Göncz said the most important goals of the policy were to achieve cooperation and unity, modernisation and competitiveness, and openness and security. Hungary is committed to tighter European integration, which is the key to its success as a country, she added.

A unified energy policy must be developed in Europe, based on secure supplies and solidarity, Göncz said.

Göncz noted Hungary fully supports European integration, partly because it is resulting in the unification of Hungarians and ethnic Hungarians living in neighbouring countries within the framework of the European Union. As many as 90 percent of ethnic Hungarians living among our neighbours are already EU citizens, she added.

Hungarian student wins Gold at science Olypmics in Taipei

Linda — Wed, 12 Dec 2007 11:35:00 +01:00

December 12, 2007

Hungarian student Áron Szigetvári won a Gold medal at the International Junior Science Olympics held in Taipei on December 2-11.

It was the first time that a Hungarian secondary school student fetched a gold at the junior Olympics organised for U16 contestants. Szigetvari, a student of the Budapest Fazekas Mihaly secondary school, was member of the six-member Hungarian student team.

At the Games participants had to fill in a 25-question test in biology, chemistry and physics and then give account of their indepth knowledge of the subjects in additional rounds.

The Junior Science Olympics was established by Indonesia in 2004.

South Stream to extend to Hungary

Linda — Mon, 10 Dec 2007 13:41:00 +01:00

December 10, 2007

Russian Prime Minister Viktor Zubkov assured Hungarian Prime Minister Ferenc Gyurcsány in Budapest on Friday that the northern branch of the South Stream gas pipeline will reach Hungary. The pipeline will ship gas from the Black Sea to Austria.

Gyurcsány told a subsequent press conference that Hungary has only a single supplier of gas via only one pipeline, therefore it seeks alternative solutions such as the Nabucco project initiated by the EU and the Russian-Italian South Stream project. An agreement under which a strategic gas reservoir with storage capacity of 10 billion cubic metres could be built in Hungary as part of the project. He added that Italian Prime Minister Romano Prodi had approached Hungary about the South Stream plan before it was announced.

MOL unveils plan for regional integration of gas pipelines
December 6, 2007

MOL has proposed the creation of an independent integrated gas transmission company in South East Europe to unify 27,000km of gas pipelines linking seven countries. The company would be set up under joint ownership and management. Gas transmission companies in Slovenia, Croatia, Bosnia-Hercegovina, Serbia, Romania, Bulgaria and Austria have agreed to take part in discussions, MOL said, adding that the project is open to other regional companies. Negotiations on the legal background of the project could last up to two years, with a further two years to deal with technical issues, MOL said, as the plan would require the approval of several governments.The company proposed by MOL would be responsible for connecting the national gas pipelines of participating countries and carrying out new investments. Given the large scale of the project, finding appropriate financing would become easier, analysts observed. MOL chief economist László Varró said the new company could be listed on a stock market, probably in London.

Another question is how Russian gas behemoth Gazprom will react to the proposal, said analysts. Overall, industry experts described the initiative as a step forward for strengthening MOL’s regional presence.

Austria’s OMV said MOL’s announcement shows the need for the consolidation of energy markets in the region, adding that a merger of the two companies would be the most effective way to guarantee security of supply. OMV said it will evaluate the proposal.

The European Commission welcomed MOL’s initiative, saying it could lead to more competition in the market and enhance the security of supply.

Hungary fully behind Nabucco pipeline
September 17, 2007

Prime Minister Ferenc Gyurcsány supported Hungary’s participation in the Nabucco gas pipeline project – which would link Central Asia to Western Europe – in a conference on the matter in Budapest on Friday. Energy Affairs Commissioner Andreas Piebalgs__ ex-pects that the nomination of EU co-ordinator Jozias van Aastrsen to oversee the project will speed up the implementation of the con-struction of the pipeline.

The government was previously accused of favouring the Russian-backed Blue Stream network after Gyurcsány referred to the Nabucco as “a pipe-dream.” In his opening speech, Gyurcsány confirmed “Hungary’s to-tal support for the EU in its efforts to integrate its gas supply,” but emphasised that several new gas pipelines would be necessary to supply the continent’s future energy needs. “It would be foolish for a country to be happy with only a single supply source,” he re-marked.

MOL chairman Zsolt Hernádi also stressed the need of diversification of gas resources and the creation of new routes from the East to South Europe, as well as the need to establish LNG terminals. The Euro-pean Union’s Energy Commissioner Andris Piebalgs said “Europe must open towards the Caspian region, which holds some of the world’s largest gas reserves.” Construction of the 3,300km Nabucco pipeline is set to start in 2009 and is scheduled to be fully operating by 2012. The projected cost of its construc-tion is calculated at some €4.6 billion, and the pipeline would have an annual transport capacity of 30 billion m3 of gas.

Nabucco’s shareholders include Hun-gary’s MOL, Botas of Turkey, Romania’s Transgaz, Bulgaria’s Bulgagaz and Austrian firm OMV. The consortium has been holding talks with Germany’s RWE and France’s Gaz de France to become the sixth partner.

Schengen expansion gets final OK

Linda — Fri, 07 Dec 2007 08:46:00 +01:00

December 7, 2007

EU interior and justice ministers yesterday gave final approval to the expansion of the Schengen zone to include Hungary and eight other countries, at a meeting in Brussels. From December 21 border checks will disappear at Hungary’s frontiers with Slovakia, Slovenia and Austria. Hungarian Justice and Law Enforcement Minister Albert Takács told reporters in Brussels after the meeting that 10-12 government decrees and lower level regulations related to the change remain to be drafted. The government will stage large-scale ceremonies to make Schengen accession a memorable event, Takács added.

Frattini promises Schengen by Christmas
July 31, 2007

“Hungary and the countries that joined the EU in 2004 will be permitted to join the Schengen border-checking agreement before Christmas,” EU Interior and Justice Commissioner Franco Frattini promised at the regular meeting of ambassadors to Hungary on his short visit in Budapest.

“The new EU member states can link to the Schengen IT network in September, and political authorization is expected in November,” Frattini pledged. “The Schengen system will be expanded by mid-December, thus we can visit family members and relatives at Christmas as if no borders exist,” Hungarian Prime Minister Ferenc Gyurcsány said. Frattini said “the US Interior Secretary told me a few weeks ago that the US will approve a new law giving equal visa rights to all citizens of EU member states. We cannot accept the US discriminating between EU member states, when its citizens can move freely through all EU member countries without a visa,” Frattini underlined. Gyurcsány thanked Frattini and added that “Hungary cannot achieve results on visa issues against the US single-handedly, but only with the help of Brussels and Frattini.” “The EU will approve a new anti-terror legislation package in the autumn, criminalising the dispersal of bomb-making information,” Frattini concluded.

Slovak-Hungarian relations

Linda — Thu, 06 Dec 2007 09:14:00 +01:00

Slovak-Hungarian FMs disagree on minority issues
December 5, 2007

Slovak Foreign Minister Jan Kubis and Hungarian counterpart Kinga Goncz exchanged dissenting views regarding minority issues and relations between their countries.

Goncz told a Hungarian parliamentary foreign affairs committee on Tuesday that on short term, diplomatic relations with Slovakia should concentrate on conflict management. She criticized Slovakia's use of ambiguous communication with Hungary and said the situation of ethnic Hungarians in Slovakia had suffered of late. She added that the Slovak government had failed to see Slovakia's ethnic Hungarian SMK party as the advocate of minority rights for ethnic Hungarians living in Slovakia, and instead treated it merely as an opposition force. Goncz said until these areas of conflict were resolved, "we have to question the idea of a meeting of the prime ministers of the two countries."

Talking to the press after a Slovak government session on Wednesday, Kubis rejected the claim that ethnic Hungarian minority rights were faltering and said that the problems regarding the Hungarian minority were small and should not affect bilateral relations. Kubis said Slovakia was still preparing for a meeting of Hungarian-Slovak premiers. He criticised SMK's leadership for failing to communicate in a manner that reflected their role of protecting minority rights for ethnic Hungarians.

The 2008 Slovak budget approved yesterday sets aside no funds for Hungarian-language broadcasts of Radio Pátria. The state-run Slovak Radio will cease all broadcasts, including those of Radio Pátria, on the medium wave band. Ethnic minority broadcasts will be aired only by satellite and on the internet from January, said Slovak Radio programming director Lubos Machaj.

Ildikó Nagy, director of Radio Pátria, said in Tuesday’s edition of the Bratislava-based Hungarian-language daily Új Szó that Hungarian-language broadcasts in Slovakia will come to an end after 80 years, if the decision is endorsed by the Radio Council.

Slovak gov't gives thumbs up to Hungarian border bridge construction
November 14, 2007

The Slovak government voted on Wednesday to authorize foreign minister Jan Kubis to join Hungarian FM Kinga Göncz in Sturovo (Párkány), Slovakia, on Friday and add his signature to an interstate agreement calling for reconstruction of two bridges spanning the Ipoly river that marks the border between the two countries. The two bridges on the Ipoly will connect the Hungarian Pösténypuszta with the Slovak Pető and the Hungarian Ráróspuszta with the Slovak Rárós. The constructions will be co-financed with EU funds by the two countries.

The brief meeting between the two FMs and the accord are the first substantive event in ties between the two countries since the Bratislava parliament recently reaffirmed the post-WWII Benes Decrees, which deprived ethnic Hungarians of their property under the principle of collective guilt, sources in the Slovak capital have noted.

Slovak reiteration of collective guilt unacceptable, says Hungarian government
September 21, 2007

The Hungarian government rejects the principle of collective guilt and believes the vote by Slovakia's parliament that reconfirmed the post-WWII Benes Decrees passed to punish German and Hungarian nationals living in Czechoslovakia at the time, runs counter to European Union principles, the government spokesman said on Thursday.

Speaking for the prime minister, David Daroczi said Hungary would prefer conciliation to the incitement of tension and cannot support measures to the contrary. Prime Minister Ferenc Gyurcsany called the portions of the Benes Decrees directed against residents unjust. The decrees deprived many Hungarians of their homes and property, holding them responsible for the war, and they have never received compensation.

Speaking for the senior government coalition partner MSZP, Jozsef Kozma, who is responsible for foreign affairs, said the offensive action on the part of the Slovak legislature came after Hungary's parliament had made a special attempt to evolve good-neighbour relations on the basis of European norms. He too voiced shock that it came just after Hungary's political parties had issued a joint appeal for cooperation. "This type of historical anachronism has no place in a free, democratic, and tolerant Europe," said Kozma.

"While the heads of government agreed to build bridges and the majority of residents in both countries want forward-pointing relations, the idea of looking backwards appears to be gaining the upper hand, and that will not help to heal historical wounds," said Gyurcsany. He called for confidence-building measures and mutually advantageous cooperation rather than re-confirming past punishments.

On behalf of the biggest opposition party Fidesz Zsolt Nemeth said they had been shocked to learn that Slovakia's parliament had passed a resolution on the inviolability of the Benes Decrees. Nemeth called the move unfriendly, particularly coming after a meeting of ethnic Hungarian MPs from throughout the Carpathian Basin, at which MPs from all five parties in Hungary's parliament signed a statement on the need for Slovakia and Hungary to reconcile their differences. Nemeth said the move proved that Slovakia's parliament had adopted the extremist nationalism and chauvinism of the Slovak National Party, a member of the government coalition. He called on the parties making up Slovakia's parliament to return to the European principles of human rights.

Another protest was issued in the European Parliament, where MEPs from Hungary, Slovakia, and Germany protested the move.

Austrian-Hungarian energy dispute

Linda — Wed, 05 Dec 2007 17:03:00 +01:00

December 5, 2007

OMV announced yesterday that it is suing MOL over restrictions on voting rights and other anti-takeover measures. Sector peer OMV wants to remove the 10% ceiling on voting rights in the Hungarian energy company, abolish the state’s golden share in MOL and remove a restriction allowing only a limited number of board members to be replaced within a given period. Among others, the golden share gives the state a veto right over any attempt to remove the 10% voting ceiling.

OMV also declared that it will propose an EGM if MOL management does not talk to it about a possible merger.

MOL rejected the idea of talks and reiterated its position that a merger of the two companies would destroy value.

OMV said that it had to file suit before the end of the this year, as it will lose the legal right to do so next year. The company has already filed a complaint with the European Commission against MOL’s restrictions on takeover bids. OMV is suing MOL at the Budapest Municipal Court.

MOL has spent over Ft 500 billion on buying its own shares, which serves the interest of management, not shareholders, OMV said. Moreover, OMV contends, MOL sold some of its own shares to management-friendly shareholders, making these ”quasi-treasury shares” whereas the law bans voting with treasury shares, OMV said.

”It is the two companies that have to agree,” OMV CEO Wolfgang Ruttenstorfer told reporters.

Maintaining its hard-line stance, MOL said OMV’s lawsuit is further proof that OMV plans a hostile takeover contrary to friendly communication. MOL continues to reject OMV’s ”unwanted and hostile” takeover attempt, a statement said. A merger or takeover would reduce shareholder value by $240 million annually, MOL added.

OMV confirmed its earlier offer to buy all MOL shares at Ft 32,000 per share, conditional on the removal of the 10% voting cap, and the cancellation of shares under management control.

If OMV is consistent it will also attack the decisions of the EGM, if shareholders vote with the management of MOL, so a protracted struggle can be expected, Hungarian daily Napi Gazdaság observes.

In the most likely scenario, OMV and MOL will merge in two to three years, said ING oil industry analyst Tamás Pletscher. The merger will be only meaningful if the Austrian lobby can stop the EU from ordering the sale of a refinery he remarked. If the merged company were forced to sell such a facility, he added, it would be the Százhalombatta refinery, which would most probably be bought by Russians.

Meanwhile, OTP announced that its MOL stake has fallen below 10%, as it has sold some of its shares.

AUSTRIAN - HUNGARIAN JOINT CABINET SESSION

November 29, 2007

The Schengen border will open between Hungary and Austria in three weeks and it is important that the two countries now jointly develop roads and cycle paths along the border, Hungarian Prime Minister Ferenc Gyurcsany told a joint Hungarian-Austrian government session on Thursday.

Austrian Chancellor Alfred Gusenbauer said direct co-operation between Hungary and Austria complemented co-operation within the European Union. He said it also helped Hungary and Austria to represent their interests jointly in the EU.

Gyurcsany told after the government session that recent attempts by Austrian oil company OMV to acquire Hungary's Mol had not been discussed at the meeting. He described the OMV-Mol affair as a no-win situation, but noted that it needed to be resolved by the companies and it was not up to the two governments to deal with it.

Gyurcsany congratulated to Austrian railways for winning a tender for the freight rail-transport business in Hungary.

Gusenbauer said co-operation in energy management was very important but government were only regulating its framework and did not get involved in details.

Gyurcsany thanked Austria for helping Hungarians during and after the revolution of 1956 and during post-communist transformation and said relations between the two countries were close.

Gyurcsany that Austria had given not only political assistance, but also human understanding and help to Hungarians over the years.

Romanian-Hungarian Relations

Linda — Mon, 26 Nov 2007 10:18:00 +01:00

Hungarian parties pleased with outcome of Romania's EP elections
November 26, 2007

Hungarian parliamentary parties have welcomed that both the ethnic Hungarian RMDSZ party and independent candidate Laszlo Tokes fared well in Romania's European parliamentary elections on Sunday.

According to exit poll results, RMDSZ won 6.2 percent of votes and Calvinist Bishop Laszlo Tokes 3.7 percent, well above the thresholds required for European parliamentary representation.

On behalf of the main governing Socialists, Spokesman Istvan Nyako qualified the outcome of the EP elections as a victory of ethnic Hungarian voters in Romania.

Zsolt Nemeth of the main opposition Fidesz party assessed the results similarly, adding that the elected MEPs would have a chance "to create an autonomous Transylvanian Hungarian foreign policy missing for one and a half decades". Nemeth called the outcome of the elections as a success of clear-cut nation policy targets and programmes, especially in view of autonomy.

The opposition MDF party praised ethnic Hungarian voters for their "sober decision" and congratulated all Transylvanian Hungarian MEPs.

Ferenc Gemesi, State Secretary at the Prime Minister's Office in charge of minority and nation policies, qualified it as a "fine result" that both RMDSZ and Tokes made their way to the European Parliament.

Hungarian government opens labour market to Romania
November 15 2007

Hungary will open its labour market to skilled workers from Romania from January, it was announced after a joint cabinet meeting yesterday in Sibiu (see picture), the cultural capital of Europe in 2007.

Under the agreement, Hungary will open its labour market to those with secondary or basic degree qualifications, or a skilled workers certificate, without restrictions. Only unskilled Romanian workers will have to apply for job permits.

The two sides also signed accords on border controls, building an express rail line linking Budapest, Bucharest and Constanta, supporting research on ethnic minorities, obtaining EU funds for joint projects and on financial co-operation. A further ten agreements were finalised, affecting culture, pro-tection for ethnic minorities and infrastructure development. “Too many common issues bind the two countries together for them not to be able to rise above old grievances,” Hungarian Prime Minister Ferenc Gyurcsány told reporters meeting.

Romanian Prime Minister Calin Popescu Tariceanu said the Transylvanian town of Sibiu, this year’s cultural capital of Europe, had been selected as the venue because the joint cabinet meetings are meant to symbolise the new European spirit.

Pápa set to become NATO airport facility

Linda — Mon, 19 Nov 2007 10:39:00 +01:00

November 19 2007

“Pápa in west Hungary will become a NATO base airport, ahead of Ramstein airbase in Germany and Konstanta in Romania,” Hungarian Defence Minister Imre Szekeres announced on Saturday.

A NATO working team, preparing the procurement and operation of C-17 planes for a strategic airborne fleet, made the decision on Friday. The fleet comprising four C-17 transport planes will be deployed in 2009.

A NATO consortium is expected to fund the $30 million development cost. The airport will play a role in transporting logistics materials and provisions to crews serving in Iraq and Afghanistan.

Approximately 200 foreigners will move to Pápa with their families in order to work at the airbase and most of them will come from the US as the C-17 pilots are all Americans.

NATO C-17 air base in Pápa?
September 5 2007

A decision is expected in October on whether four NATO C-17 giant transport planes will be based in Hungary at the Pápa airfield. A 90-member commission of experts from the countries funding the transport planes visited the air-field last week and found that it met all re-quirements. Another potential site is the US air base in Ramstein, Germany.

Hungarian Defence Minister Imre Szekeres sug-gested at a meeting of NATO defence ministers in June that Pápa could host the C-17s. Since then foreign experts have visited the airfield three times and examined the local education system, health care, recreation and accommodation facilities.

World Science Forum in Budapest

Linda — Thu, 08 Nov 2007 16:41:00 +01:00

The World Science Forum, a three-day conference entitled "Investing in Knowledge: Investing in the Future", is opened at the Hungarian Academy of Sciences (MTA). The World Science Forum, being held for the third time in Budapest, is host to 400 scientists and scholars from over 60 countries, as well as senior political decision makers. The prestigious event is jointly organised by the MTA, UNESCO, the International Council for Science (ICSU) and the European Union.

Hungarian President Laszlo Solyom said in his opening address, "It has finally dawned on us just how unsustainable the way humankind governs its life on the planet truly is." "The planet is not a subsystem of the economy but quite the opposite: the economy is a subsystem of our complex human society that, in turn, is embedded in and dependent on the natural systems of the planet. Governments have to act with urgency; they have to invest public resources quickly, having recognised this paradigm," the president said. "Who needs more knowledge, and who needs knowledge more: the electorate, the consumer or politicians and business leaders; the industrialised North or the accelerating South?"

Hungarian President Laszlo Solyom also proposed setting up a UN-based world environment organisation with enhanced powers. " Globalisation can only benefit the world if powerful international environmental governance sets it on a path of sustainability," the president said.

Solyom said the participation of the Croatian, Greek and Austrian presidents in the forum was a reflection of the fact that many European heads of state are ready to express their commitment to protecting the environment so they can rightly be called "Green presidents".

Solyom said that governments needed to take very concrete measures to resolve the conflict between economic growth and the current needs of society on the one hand and the needs of future generations on the other.

The president said the World Science Forum was an excellent opportunity for science and politics to question one another.

But while there is no shortage of policies, programmes and agreements based on scientific predictions and that the public already considers climate change to be an issue that demands attention politics alone simply does not have the power to combat economic interests.

The European Union, he said, can only maintain the credibility of its plans in the Third World if it demonstrates its ability to assist its new members in rapid economic development and improving living standards.

Greek President Karolos Papoulias said that by giving priority to growth and profit mankind was only storing up tragedy for the future. Citing the story of Icarus, Papoulias said that mankind, soaring higher and higher into the sky, had already reached the Sun. "Now we should only concentrate on what we can still be saved," he said. The Greek head of state called for international agreements to halt the elimination of rainforests, which has a bigger impact on global warming than vehicles.

Croatian President Stjepan Mesic said the present generation had no right to exploit natural resources to such an extent which limits the choices of the next generations. Mesic warned that unrestrained consumption will entail irreversible consequences for the future. Education is the best tool for creating sustainability, he said.

Austrian President Heinz Fischer said that knowledge and education should be made available to all and was the best way of investing in the future. He warned that history showed that development alone could not raise mankind to a higher moral plane.

MTA President Szilveszter E Vizi said that knowledge should always be used appropriately and every effort should be made to find answers to the health, social and environmental challenges facing mankind. "To attain this goal, we should first of all learn from one another," he said.

Official link of the World Science Forum: http://www.sciforum.hu/

Sarkozy addresses Hungarian Parliament

Linda — Fri, 14 Sep 2007 10:11:00 +02:00

French Visiting French President Nicholas Sarkozy described the relationship between France and Hungary as strategic when he delivered a speech in Parliament during his one-day visit to Hungary.

In a speech Sarkozy said “there are so many bonds connecting France and Hungary and we cannot forget that this relationship also lived through painful mo-ments, particularly the 1920 Trianon treaty, which inflicted lasting wounds.”

France is the fourth or fifth largest inves-tor in Hungary with investments concentrated in the energy and food industries, wholesale trade, the pharmaceutical industry and water-management environmental protection.

Sarkozy began his visit by calling on President László Sólyom, after which he said “Europe needs Hungary,” and paid tribute to the courage displayed by the Hungarian peo-ple, particularly their heroism during the 1956 Revolution. Sarkozy said he believes that “Hungary has always played a key role amongst East European countries,” adding that “France wants to be present in Hungary.” He claimed that “there are no large or small countries among the EU states, only equal members.”

Sarkozy agreed with Sólyom that the identity of ethnic Hungarians abroad should be preserved but also made it clear that while France supports individual and cultural rights, it holds a more reserved stance on collective rights and regional autonomy. He then pro-posed that the two countries continue to dis-cuss this subject, possibly even at a seminar. He said Hungary has “paid bitterly” for the mistakes committed by several political lead-ers and that he understands the emotional bond between the ten million Hungarians and the five million ethnic Hungarians living in foreign countries. Sólyom said he had invited Sarkozy to the scientific conference World Science Forum that will be staged in Buda-pest on November 8.

Sarkozy later met Prime Minister Ferenc Gyurcsány, with both leaders stressing the need for reforms in Europe. Sarkozy said “Europe needs people who can get things moving, as inertia makes the continent weak.” The pair agreed to write a letter to their respective party representatives in the European Parliament to back a plan for a “council of elders” to debate the EU’s future.

Gyurcsány stood up for the planned Nabucco gas pipeline and for the diversifica-tion of gas procurement, and both leaders supported a common European energy policy and the Nabucco plan. Sarkozy then visited the Hungarian royal crown on display in Parliament with Speaker Katalin Szili.

Sarkozy later met briefly with Fidesz chairman Viktor Orbán, who told reporters afterwards that they had agreed on the need for changes in Europe,” although Orbán stressed that improvement in competitive-ness must not be an end in itself, but a proc-ess in the interest of the happiness of Euro-pean peoples.” Orbán described Sarkozy as “a politician removing neoliberal economic policy taboos,” and added that he had ac-cepted Sarkozy’s invitation to attend the con-vention of France’s right-of-centre governing party the Union for the People’s Movement, in early October.

Sarkozy also laid a wreath at the 1956 monument at the University of Technology and visited the construction site for metro line number four with mayor Gábor Demszky.