Fidesz politician: Russia is our partner

Asked about corruption in Brussels, Gulyás said that as a member of the EU, “we are interested in the headquarters of the European Union functioning well and being above all suspicion”, and yet we see that “Brussels is full of corruption”, and there are still cases suggesting “charges of influence peddling”.

It must be made clear that no norms other than EU law apply in Brussels, he said, adding that “we support the investigation of such cases”.

Speaking about EU foreign policy, he said the main subject of Hungarian criticism was that major EU member states did not recognise or represent European interests, while major actors of international diplomacy stood up for their own interests.

Regarding the statements made by French President Macron during his visit to China, Gulyás said it was “a brave step and initiative for Europe to recognise its own interests and act accordingly”.

He said Europe was interested in free trade and that within the relevant framework “we maintain economic relations not only with our allies but also with the eastern half of the world”.

Asked about whether the Hungarian government supported the re-election of Ursula von der Leyen as head of the European Commission, Gulyás said it was too early to comment on that. At the same time, he noted that the German union parties have recently decided that they would support her re-election and she was present at the meeting. Gulyás dismissed as “speculation” the suggestion that the German politician would continue her career as NATO Secretary General.

Asked about the EU farm subsidies, he said “these are coming to Hungary without interruption”, and they were not affected by the dispute over cohesion funds.

Asked about the finances of the Budapest city council, Gulyás said there was no request on the government’s table for Budapest to take out a long-term development loan. He added that the government considered the indebtedness of municipalities as dangerous and harmful, and this was allowed only in the rarest of cases.

He said the city’s local business tax revenue increased by 76.4 billion forints from last year to this year alone. Budapest’s current leadership inherited HUF 214.2 billion from Istvan Tarlos, the previous mayor. Of this, 25.5 billion remains on the treasury account, according to the government’s information, “which says a lot about how the capital is managed”, Gulyás said.

He linked Karácsony’s announcement on withholding tax for the central coffers with his intention to run again the 2024 municipal election. Two weeks ago, DK president Ferenc Gyurcsány told him off for not criticising the government harshly enough, Gulyás said. “Maybe he’s just obeying his boss,” he added. In the past 15 years, investments in Budapest were implemented by the government, he said, adding they were not endangered by the city’s near-bankruptcy.

The governing parties are working a proposal under which the rules of party financing should also apply to participants of the municipal election, he said. This would rule out the possibility of foreign funding, he added.

Asked about whether price caps may be extended over additional products, Gulyás answered with a clear “no”.

Asked about the central bank’s planned narrowing of the interest rate corridor and the management of inflation, Gulyás said lending interest rates were “so high nowadays” that almost no one would borrow a significant amount to buy a home.

He said the reduction of the upper threshold of the interest rate corridor should be followed by “many similar steps” for this situation to change.

Gulyás said he expected inflation to fall significantly in the summer, with a breakthrough taking place probably in July and August.

Asked about the fate of the state’s share in the International Investment Bank (IIB), which is pulling out of the country, the minister said the Hungarian state was obliged to enforce all its claims. He said the regulation “making clear that the headquarters of this bank is no longer in Budapest” will be published later during the day, and with the departure, diplomatic immunities will expire.

Asked whether Russia is also a friend of Hungary’s, like the United States. “Russia is our partner, our economic partner primarily in the procurement of commodities; the United States is our ally and our allies are our friends,” he said.

He said he did not know of any substantial damages caused to Hungary by the sanctions announced by the United States concerning the International Investment Bank, but, he added, the question was how much money Hungary could obtain of capital invested into the bank. Just as Czechia and Slovakia, Hungary will also enforce its claim on money invested, he said.

Source: MTI