budget

Soros: Europe must stand up to Hungary and Poland – Interview

george soros osf

US financier George Soros said in an opinion piece published on commentary portal Project Syndicate that Europe must stand up to Hungary and Poland.

Soros said the “EU can’t afford to compromise on the rule-of-law provisions it applies to the funds it allocates to member states.”

“How the EU responds to the challenge to those provisions now posed by Hungary and Poland will determine whether it survives as an open society true to the values upon which it was founded,” he added.

Soros said

Hungary and Poland had vetoed the European Union’s proposed seven-year budget and recovery fund because their governments were opposed to the rule-of-law conditionality that the EU had adopted and they did not want to pay the consequences.

For Hungarian Prime Minister Viktor Orbán and “Poland’s de facto ruler” Jaroslaw Kaczynski “the rule of law represents a practical limit on personal and political corruption,” Soros said. “The veto is a desperate gamble by two serial violators,” he added.

“Orbán has constructed in Hungary an elaborate kleptocratic system to rob the country blind,” Soros said.

He said only the EU could help, for example by directing funds to local authorities, “where there is still a functioning democracy in Hungary, unlike at the national level”.

George Soros suggested in his opinion piece that “the Orbán-Kaczynski veto could be circumvented”.

Considering that the rule-of-law regulations have been adopted, “in case there is no agreement on a new budget, the old budget, which expires at the end of 2020, is extended on a yearly basis.”

“Hungary and Poland would not receive any payments under this budget, because their governments are violating the rule of law,” he added.

He said the question was whether the EU could “muster the political will”.

Full article on Project Syndicate.

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Read alsoOrbán cabinet: We supported Trump, whereas Biden has been supported by George Soros

Orbán: Hungary’s EU budget veto in line with treaties

orbán eu

The Hungarian government has vetoed the European Union’s budget package in line with its position communicated during the summit this July, and in accordance with the power of veto laid down in the EU treaties, Prime Minister Viktor Orbán said in a statement on Wednesday.

“Those who protect their borders and their countries from migration are no longer considered by Brussels to be rule-governed states,” the prime minister said, adding that once the current proposal tying the rule of law to funding was adopted, funding would be “tied to support for migration” and used to “blackmail” countries that oppose it.

Throughout the debate, Orbán added, Hungary had maintained a policy of “loyal cooperation, predictability and transparency”, while always remaining open to compromise, even though Hungary never considered raising joint loans as an adequate solution.

“We only accepted the compromise in July out of dedication to European solidarity and because of our willingness to offer help so that fellow member states in financial need could secure the necessary funds as quickly as possible”.

The prime minister insisted that Hungary was a “dedicated adherent” to the rule of law, noting that Hungary’s current leadership had once fought for democracy in the face of the communist dictatorship.

Orbán said that in the course of debates on migration in recent years, the rule of law had been weaponised politically. Without objective criteria and the possibility of legal remedy, no procedure that aims to penalise member states should be based on it, he added.

“In our view, tying economic and financial issues to political debates would be a grave mistake, one that would undermine European unity. Any new procedure aimed at penalising member states should only be introduced through the unanimous amendment of the Treaties. We request that fellow member states adhere to this requirement,”

he said.

European Parliament building
Read alsoRuling Fidesz MEPs only group to vote against EP position on EU budget

Hungary, Poland veto EU budget, post-pandemic recovery package

Hungary and Poland have vetoed the European Union’s next multi-year budget and post-pandemic recovery package, diplomatic sources told MTI on Monday.

Budapest and Warsaw reportedly blocked the next seven-year budget and the recovery package because they view them as being in violation of the bloc’s founding treaty as well as an agreement reached by EU leaders in July on not tying receipt of EU funds to political conditions.

With member states failing to reach a unanimous agreement, the issue of the budget and the recovery fund could go back before the European Council, the sources said.

Sebastian Fischer, the spokesman for the German EU presidency, said on Twitter on Monday that

EU ambassadors in Brussels had failed to reach unanimity on the EU’s next budget and the coronavirus recovery fund due to reservations expressed by two member states.

Fischer said the ambassadors had approved the so-called rule-of-law conditionality mechanism with a qualified majority.

Hungarian Prime Minister Viktor Orbán on Monday informed German Chancellor Angela Merkel, European Commission President Ursula von der Leyen and European Council President Charles Michel that

his government would veto legislation related to the EU’s 2021-2027 budget and the recovery fund.

Orbán has said that tying the EU’s budget and the recovery package to conditions where “the nature of the alleged law violation is not precisely defined” put trust between member states, as well as the interests of Hungary, at risk.

European Parliament building
Read alsoRuling Fidesz MEPs only group to vote against EP position on EU budget

BREAKING NEWS – Orbán: Hungary to veto EU budget, recovery fund

Orbán-coronavirus-mask

Prime Minister Viktor Orbán said Hungary will veto the European Union’s budget for the 2021-2027 financial cycle, and its recovery package designed to offset the fallout of the coronavirus pandemic, the prime minister’s press chief told MTI on Monday.

In a letter addressed to German Chancellor Angela Merkel, European Commission President Ursula von der Leyen and Charles Michel, the President of the European Council, Orbán said Hungary would vote against all elements of the multiannual financial framework (MFF) and the Next Generation EU recovery instrument (NGEU), including vetoing the parts requiring unanimous approval, Bertalan Havasi said.

The veto would include the decree on the MFF and a decision on the member states’ own resources, Havasi said.

Hungary in this instance is holding itself to the priciple that “nothing is agreed on until everything is agreed on,” Orbán said.

Havasi noted that Orbán had repeatedly warned against tying the EU’s budget and the recovery package to conditions where “the nature of the alleged law violation is not precisely defined, leading to politically motivated financial sanctions by employing double standards.” Such measures would threaten the trust between member states as well as Hungary’s interests, Havasi cited Orbán as saying.

Hungary is committed to the shared values of the European Union, including the rule of law, “but it should be left to the Hungarian people to decide whether those regulations are adhered to and implemented correctly, as they are as good judges of the issue as any other European people”,

the statement said.

European Parliament building
Read alsoRuling Fidesz MEPs only group to vote against EP position on EU budget

Justice minister: Hungary fighting for Europe, not against

varga judit justice minister
Justice Minister Judit Varga said that ahead of the final decision on the European Union’s next budget framework it must be clarified that “Hungary has never fought against Europe, but for Europe”.
 
“Hungary has never fought against Europe, but for Europe and for the European future of our children and grandchildren,” she said on Facebook on Monday. Varga said that during the extended negotiations on the EU budget, “some Member States and the domestic opposition included many issues in the figures”. “Hungary agrees with the founding fathers of the Union that Europe will be Christian and humanist or it will be nothing,” she said.
The majority of Hungarians, and Europeans, clearly believe that “Europe should not give up its identity and the fundamental values that make Europe the most liveable continent in the world”, she said.
“At the time of its accession to the EU in 2004, Hungary did not say yes to a federalist Europe, or to globalism and especially not to the United States of Europe, but to a mutually supportive and respectful alliance based on strong nation-states,” Varga said.  
By joining the EU, Hungary did not give up that part of its national sovereignty “that decides who we want to live with in our own country”, she said.     
“We did not say yes to joining the EU so that Brussels could define for us what we consider a family, what we call marriage and who can adopt children in Hungary and under what conditions,” she said.     
Varga said it was not true that Hungary failed to demonstrate solidarity with other member states during the migration crisis. She said
Hungary had spent hundreds of billions of forints to protect Europe’s borders and was trying to help people locally because Hungary believes that instead of importing problems to Europe, assistance should be brought to those in need.    
 
Varga said it was not Hungary that “attacked” other member states for their migration policies but the other way round.     
She also said that contrary to the Hungarian opposition’s claims, EU support and cohesion funding were not charitable donations but payments that Hungary is entitled to for based on the EU treaties.     
“It is not Hungary blackmailing and putting pressure on Brussels in the EU budget negotiations, but it is Brussels blackmailing us,” she said.     
“Anyone who knows Hungarian history knows exactly that when it comes to the future of our children and grandchildren, the Hungarian people and Hungary makes no compromise, be it a war of independence or just a simple veto.,” she added.
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Read alsoJustice minister: Hungary ‘black sheep for rejecting migration’

Ruling Fidesz MEPs only group to vote against EP position on EU budget

European Parliament building

Fidesz MEPs were the only group in the European People’s Party to reject voting in favour of the European Parliament’s position on the European Union’s budget for the 2021-2027 financial cycle, a Socialist MEP said on Sunday.

István Újhelyi told an online press conference that the proposal, voted down by Fidesz, had been aimed to increase funding for job protection and expanding employment, the Erasmus programme, research and a “European Health-care Union”.

Újhelyi noted that Prime Minister Viktor Orbán had threatened to veto the budget and the recovery fund designed to offset the fallout of the coronavirus pandemic should EU funding be tied to rule of law regulations.

The MEP insisted that Fidesz “didn’t care” if Hungary, and other member states, would be left without EU funding, because “their priority is to avoid being held accountable for keeping democratic values … and transparent use of EU funds”.

“Fidesz MEPs are again in opposition in Europe,” he said.

Újhelyi pledged to support the proposal when it is sent back to parliament after cross-institutional examination, if the sectors he represents — the health-care union, tourism and transport policy — are not harmed by it.

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Read alsoBudapest Mayor Karácsony: Government would be ‘rejecting helping hand’ by vetoing EU budget

Budapest Mayor Karácsony: Government would be ‘rejecting helping hand’ by vetoing EU budget

karácsony budapest mayor

The Hungarian government would be “rejecting a helping hand” in the middle of the coronavirus crisis if it vetoed the European Union’s next multi-year budget and post-pandemic recovery package, Budapest Mayor Gergely Karácsony said on Tuesday.

Addressing an online press conference after a board meeting of the alliance of local governments MOSZ, Karácsony, a co-chair of the alliance, said Hungary’s local governments backed and were ready to implement the new round of virus-related restrictions announced by the government on Monday.

He added, at the same time, that the measures came at a cost to budgets and society that “needs to be paid together”.

“The more restrictions that are implemented, the more we have to be prepared for an economic slowdown that will threaten jobs,” Karácsony said.

“That’s why the government would be rejecting a helping hand in this crisis by . vetoing the European Union budget with reference to the plan to tie the distribution of funds to rule of law criteria,” he said.

Karácsony said this was “irresponsible” on the part of the government and called on Hungary’s leaders to do everything they can to ensure that the country and its localities have access to EU monies as quickly as possible.

“This is practically Hungary’s only option for staying afloat,”

Karácsony said, adding that it was the Hungarian people, and not the government, that was in need of the 2,500 billion forints’ (EUR 6.96bn) worth of funding the country is entitled to. And since local governments are the ones closest to the people, he said, the direct funding of localities should be strengthened.

Concerning the initiative to ensure direct EU funding to localities, the mayor noted that the European Parliament’s relevant committees on Monday passed resolutions that would ensure the involvement of localities in the decision-making process on the distribution of funds.

Benedek Jávor, representative of the Budapest Municipal Council in Brussels, said

it was a testament to the lobbying efforts of the municipal council over the past several months that the involvement of local councils when it comes to deciding on the use of EU funds, in particular of the recovery fund, was set to be strengthened.

Budapest-Mayor-Karácsony
Read alsoBudapest mayor: Orbán cabinet had already lost control of the epidemic weeks ago

Orbán is ‘prepared to veto EU budget’

von der leyen orbán

Viktor Orbán is prepared to veto the EU budget and the recovery fund if the payment of funds to member states is tied to the rule of law, according to mandiner.hu.

The prime minister has written to the EU German Presidency concerning the matter, the website said on Sunday.

Sanctions on EU member states would be agreed in the European Council by a qualified majority, according to an agreement reached between the Council and the presidency.

Approval of the 7-year EU budget and 750 billion euro Next Generation EU, however, requires unanimity in the Council.

Prime Minister Mateusz Morawiecki has also indicated his willingness to use Poland’s veto if conditions regarding EU payments fall foul of Polish expectations, the website said.

Orbán addressed his letter to the leaders of next year’s EU presidencies, Slovenia and Portugal, as well as to Charles Michel, the Council’s head, and Ursula von der Leyen, the European Commission’s president.

The prime minister pledged Hungary’s commitment to cooperation but added that the government could not guarantee approval of the recovery package adopted in July due to the compromising of Hungarian interests regarding the rule-of-law-EU-payment issue.

He said values such as the rule of law were the bedrock of Hungary’s value system and democracy but, he added, the Hungarian people must judge how these are implemented, adding that Hungarians were just as capable this as other European citizens.

Orbán noted that the Hungarian legal system has been properly scrutinized by EU authorities and all outstanding disputes had been resolved.

Further, Hungary has submitted “hundreds of pages” of clarification documents over the past two years in connection with the Article 7 procedure ongoing against the country.

The prime minister insisted that the Commission’s recent report on the rule of law was based on politically motivated charges against Hungary rather than being fact-based. He added that the report was a way of interfering in the democratic electoral processes of certain countries.

Orbán said the planned sanctions mechanism was based on legally vague definitions such as “violation of the rule of law”. Such hazy concepts create opportunities for political abuses and breach the requirement of legal certainty, he wrote.

Orbán said if this situation persisted, the government would have “no other choice” than to reject the other elements of the July package.

Hungary V4 Viktor Orbán
Read alsoPoland, Hungary protest tying EU budget allocations to political conditions

Poland, Hungary protest tying EU budget allocations to political conditions

Hungary V4 Viktor Orbán

Poland, similarly to Hungary, has come out against a fresh preliminary agreement between the German European Union presidency and the European Parliament on tying EU budget allocations to member states “to political and ideological criteria”, the foreign minister said on Friday.

Péter Szijjártó said on Facebook that he had discussed the matter with both his Polish counterpart Zbigniew Rau and Polish Minister of Labour, Development and Technology Jaroslaw Gowin by phone earlier in the day.

He said they were in agreement that the matter did not concern “the money of Brussels bureaucrats but funds generated by the work of the European people (including Poles and Hungarians)”.

Neither the Hungarian nor the Polish government can allow anyone in a case like this to tie the receipt of European funds to “subjective ideological conditions” or to “use the matter of EU money for political blackmail”, Szijjártó said.

He added that he and his Polish partners had assured each other that they would remain committed to their position, and would continue to support one another on the issue.

Not only do Hungary and Poland not accept but they firmly reject criticisms of the state of democracy in their respective countries, Szijjártó said, arguing that both the Hungarian and Polish governments had been given clear mandates by their electorates.

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Read alsoJustice minister: Hungary ‘wins battle’ over EU budget

Hungarian army development progresses as scheduled, says minister

Army development progresses as scheduled

The development of the Hungarian Armed Forces progresses in line with schedule, the defence minister told parliament’s national security committee on Tuesday.

In a regular annual hearing, Tibor Benkő said that the Hungarian army should become a significant power for the region to guarantee peace, security and stability in central Europe. This requires technical developments carried out in line with a detailed defence and army development programme, he added.

The programme dubbed Zrínyi 2026 was launched in 2017 and repeatedly updated since then to address new challenges, he said, adding that planning is already under way with an outlook for 2030-2032.

Benkő said that

67 secondary schools had joined a defence training scheme and 8-10 secondary schools are planned to be set up for military training in the next ten years.

The minister presented in detail the completed and planned elements of the army development programme. He cited as an example the arrival of the first Airbus H145M military helicopters in 2019 and noted that out of 20 such helicopters ordered by the army, 16 will have arrived by the end of this year. He also said that Airbus A319 transport aircraft have been set up in a way to make them suitable also for rescue operations.

Commenting on arms manufacturing capacities in Hungary, he said that more than 14,000 small arms assembled in Kiskunfélegyháza in southern Hungary were delivered to soldiers last year.

The minister said that he had signed a letter of intent and Ferenc Korom, the commander of the Hungarian Army, a contract on missile purchases. The contract envisages the purchase of 120 missiles in the first phase, and possibly another 60 later.

Benkő said that the security environment had deteriorated, with great challenges posed by certain unstable countries in the Middle East, Asia and Africa. This is also assumed to be the cause of illegal migration and numerous examples have demonstrated that these developments pose a threat to western civilisation, he added.

Hungary has been effectively handling illegal migration since 2015,

Benkő said. The Hungarian army has been involved in guarding the borders in line with demands expressed by the ministry of the interior since the introduction of laws on border protection, he added. This remained a priority task last year, with 11,000 soldiers participating in border protection and control, he said.

Benkő said that in line with NATO and Hungarian projections, security and defence threats have been established from the east and south. Deterrence is important in handling threats from the east, in protection against Russia, but dialogue must also continue, he said.

Threats from the south also pose complex challenges to NATO members, including Hungary, he added.

Central Europe and Hungary are at the crossroads of threats from the east and south, he said.

This has been the reason for a decision to set up a multinational central European command based in Szekesfehervar, he added.

The establishment of a Special Operations Component Command (SOCC) in Szolnok to maintain security and stability for the region was one of the most successful multinational cooperation projects last year, he said.

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Read alsoArmed Forces, Wizz Air sign cooperation pact on personnel training

Final accounts for 2019 budget discuss by the Hungarian parliament

Varga Mihály Final accounts for 2019 budget discussed by the Hungarian parliament

The budgetary and financial macroeconomic achievements of recent years have created a firm basis to blunt the negative economic and social effects of the novel coronavirus epidemic, Finance Minister Mihály Varga told parliament during the debate on the final accounts for 2019 budget on Wednesday.

Commenting on the implementation of last year’s budget, he said the left wing had described the 2019 budget as unpredictable and unsustainable, but, he insisted, they have been proven wrong.

Instead of introducing austerity measures, the government has been managing the crisis with the help of a comprehensive programme aimed at preserving jobs and supporting families, with a focus on guaranteeing the security of Hungarians, he said.

One important condition for this in recent years, including last year, was pursuing disciplined and predictable economic policy that boosted the economy, he added.

László Domokos, head of the State Audit Office, said that an audit of the implementation of the 2019 budget showed that the institutional system ensured that public monies were spent in line with regulations.

The bill on the closing of acccounts is well-founded and all revenue and expense figures included were reliable, he added.

As we wrote yesterday, Hungarian parliament unanimously approved legislation to extend a moratorium on loan repayments, but only for vulnerable borrowers, details HERE.

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Read alsoHungarian policy-makers keep base rate on hold

Hungarian government fights the second wave of COVID-19 with mindless spending

coronavirus

The Hungarian government keeps spending way more money than necessary on medical equipment in the name of preparing for the second wave of the coronavirus pandemic. They keep buying ridiculously overpriced items when the market has way better and cheaper options available.

Ridiculously overpriced mask sewing machines

The government purchased mask sewing machines from China for 600,000 euros, Telex reports. However, members of the opposition claim that there are similar sewing machines on the market for just a fraction of this price.

For example, Ákos Hadházy, an independent Member of Parliament, found a very similar sewing machine online for just 60,000 euros, and someone from retail also told him about a machine that can sew 100 masks in a minute and costs around 63,000 euros. Even if we add the shipping, customs, and tax charges, it still totals in way less than what the government paid. György Babosi from Momentum claims the same. Babosi owns a company selling medical machines, and he could have got mask sewing machines capable of producing 1 million masks a month for 140,000 euros + shipping and customs.

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Read alsoDo figures show Hungary prevention effective?

1.6 million euros for thermometers that do not work

The government also spent 1.6 million euros on 41,000 thermometers (approximately 39-40 euros per piece) which they distributed among schools, Népszava reports. These thermometers proved to be untrustworthy, as they often indicate irrelevant, much-too-low temperatures. Similar thermometers are available online for 28-221 euros per piece. The National Healthcare Service Centre also orders disinfectants for educational institutions for 1.6 million euros monthly.

Excess ventilator shopping

For whatever reason, the government keeps buying ventilators, even though there are more than necessary available already, 444 reports. A tender has been drawn by the National Directorate General for Disaster Management, which belongs to the Ministry of the Interior, for 465 ventilators when there are currently 20,000 ventilators available in Hungary thanks to an over-purchase of HUF 300 billion (EUR 835 million).

Read alsoOpposition demands answers from government on reports of ventilator shortages

Hungary’s budget shortfall EUR 7.78 bn at end-August

Daily News Hungary economy

Hungary’s budget deficit, excluding local councils, came to 2,261.3 billion forints at the end of August, widened by pandemic defense spending, economic stimulus and pre-financing for European Union-funded projects, the Finance Ministry said in a preliminary release on Wednesday.

The ministry said spending on pandemic defense, such as acquisitions of personal protective equipment and ventilators, came to more than 553 billion forints by the end of August.

It said that payouts for EU-funded projects exceeded 1,374 billion forints by the end of August, while transfers from Brussels came to 772.4 billion, with 283 billion transferred in August alone.

The government has been pre-financing EU-funded projects for years to avoid backups and ensure all available monies are used up.

The central Hungarian budget ran a 1,873.1 billion forint deficit; separate state funds were 2.3 billion in the red, while the shortfall in social insurance funds was 385.9 billion.

(HUF 100 = EUR 0.2776)

15 EU countries set to receive 81.4 bln euros for saving jobs during COVID-19

coronavirus italy airport

The European Commission on Monday presented proposals to the Council of the European Union (EU) to grant 81.4 billion euros (96 billion U.S. dollars) to 15 EU member states to help them mitigate the effects which the COVID-19 pandemic has had on employment.

As planned, the countries will be receiving assistance through the instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE), designed to help protect people in work and jobs affected by the coronavirus pandemic.

“Just four months after I proposed its creation, the Commission is proposing to provide 81.4 billion euros under the SURE instrument to help protect jobs and workers affected by the coronavirus pandemic across the EU,” said European Commission President Ursula von der Leyen.

Once the EU Council approves the proposals, the financial support will be provided in the form of loans granted on favorable terms from the EU to member states.

Loans will be underpinned by a system of voluntary guarantees from member states, the Commission said.

Aiming to assist the countries to address the sudden increases in public expenditure to preserve employment, the support will help cover the costs directly related to the financing of national short-time work schemes and similar measures, particularly for the self-employed.

Among the 15 candidates on the list are hardest hit countries like Italy, which will get 27.4 billion euros, and Spain, to be granted 21.3 billion euros. Poland is likely to get 11.2 billion euros, Belgium 7.8 billion euros, Romania 4 billion euros and Greece 2.7 billion euros.

One of the EU’s three temporary safety nets worth 540 billion euros in total, SURE is a temporary scheme that can provide up to 100 billion euros of loans.

Endorsed by EU leaders in April, the package became operational on June 1, 2020. While all member states are able to make use of the instrument, SURE acts as a particularly safety net for workers in the hardest-hit economies.

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Read alsoCzech politicians in danger? – 11 MPs in quarantine

When will the Hungarian economy start to recover? – finance min official told

The government expects the economy to start recovering next year, with growth of above 4 percent and a budget deficit below 3 percent, a finance ministry official said in an interview to public radio on Tuesday.

Whereas the budget deficit is likely to be 7-9 percent of GDP this year on the back of additional spending on protection measures, a gradual turnaround is probable in 2021, state secretary Peter Beno Banai told Kossuth Radio.

Around

500 billion forints will be spent on measures to protect the economy

in the second half of the year. Hungary’s economic prospects are largely tied to European developments, he said.

As yet, the 2021 budget is uncertain, and much depends on the course of the coronavirus in the country and the epidemiological situation in export markets. The government is monitoring these developments closely and is ready to respond accordingly, he added.

He noted that Hungary is

the only EU country that has reduced its public debt

as a share of GDP every year since 2011, so it is well placed to handle temporarily higher deficits.

Finance Ministry forecasts 7-9 pc / GDP deficit in 2020

Hungary money budget deficit

Hungary’s budget is expected to post a shortfall of 7-9 percent of GDP in 2020, in view of the slower-than-expected recovery in the second quarter and planned measures to protect the economy, the finance ministry said yesterday.

Although the economic fallout due to the coronavirus epidemic was not as serious as that in the rest of the European Union, Hungary’s economy shrank substantially, by 13.6 percent, in the second quarter of 2020, the statement said. The decline combined with tax cuts have set the economy back by 1,400 billion forints (EUR 4.0bn), it said.

Due to the government’s economy and job-protection measures,

the cash flow-based budget deficit came close to 2,165 billion forints at the end of July, the statement said.

The ministry said that an adjustment of the deficit target is warranted in view of the epidemic protection plan and measures to protect the economy expected later in the year.

The average planned deficit in EU countries is 9 percent of GDP this year, the statement noted.

In the spring, the government had estimated the 2020 general government deficit could reach 3.8-4.0 percent of GDP. Finance Minister Mihaly Varga said early in July that the gap would have to be recalculated.

Hungary’s budget deficit EUR 6.175 billion at end-July

Daily News Hungary economy

Hungary’s budget deficit, excluding local councils, was 2,165 billion forints at the end of July, the Finance Ministry said in a detailed release of data on Wednesday.

Additional spending on virus protection, economic stimulus and pre-financing for European Union-funded projects, increased the shortfall.

Payouts for EU-funded projects came to 1,274.9 billion forints by the end of July, while transfers from Brussels were 489.5 billion.

“Resources necessary for jump-starting the economy and for pandemic defence are covered entirely from the Hungarian budget,” the ministry said.

“Although the economic recovery has begun, the jump-start after the state of emergency will continue to require resources of a large scale. It is the government’s intention to give Hungarian businesses all means of support and to create as many workplaces as have been lost because of the pandemic,”

the ministry said.

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Read alsoSalary report reveals a shocking gap between Budapest and Hungary’s eastern regions

MEP Gyöngyösi: The stakes of the German EU presidency: Europe’s future – Part 2

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Press release by Jobbik MEP Márton Gyöngyösi: 

As it has been reported in the media, the European Council of Member States’ heads of government agreed on the multiannual financial framework last week but, just a few days later, the extraordinary meeting of the European Parliament adopted a resolution with a two-thirds majority and rejected the agreement, voicing several critical remarks.

Since the agreement cannot enter into effect without the approval of the EP as a co-legislator, the German presidency will need to put a serious effort this autumn into harmonizing Member State interests with the concerns of the Members of European Parliament.

In addition to the budget related debates, there is another area where the German presidency will also need to meet some high expectations: the agreement to regulate the details of the UK’s exit from the Union and the future EU-UK relations. 

This does not look like a simple task either, especially if you consider the deadline (31 December, 2020) and the diverse interests of the Member States. 

I am not going to discuss every detail of the Brexit deal here, and while the trade, energy, fishing and agriculture chapters will undoubtedly have a major impact on future EU-UK relations, I am only going to focus on the European security and defence details of the deal. This is the area where I believe the EU will suffer highly significant losses after the exit of the United Kingdom.

The UK is one of the few key geopolitical players of Europe: it is a permanent member of the UN Security Council; it has the largest defence budget of all Member States; it is one of the few NATO members that actually meet the NATO guideline to spend 2% of its GDP on defence; and, besides France, it is the only country that has all the military and defence capabilities, including nuclear capabilities as well.

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Read alsoMEP Gyöngyösi: The stakes of the German EU presidency is Europe’s future

This means that Europe loses its member with the strongest defence capabilities, and at the worst possible time, too.

Brexit is taking place at the time of a geopolitical turning point when Russia is returning to the international arena while testing the limits of international law; China induces a strategic competition with the West; and the USA, the power that has guaranteed Europe’s security since the Second World War, has lately been plucking at the strings of unilateralism by terminating international agreements and spectacularly pulling out of international institutions. 

In this geopolitical situation, the next decades will most likely be characterized by instability, tensions in trade, technological race, terrorism and global security challenges. 

These are the areas were the EU and the UK will be increasingly dependant upon each other. Both negotiating parties will need to make each other understand that the UK is leaving the European Union, but not Europe. Great Britain has indisputably had an ambivalent relationship with our continent ever since the reign of Henry VIII, and the Common Security and Defence Policy defined in Article 42 of the Treaty on European Union (TEU) has never fully won the approval of the British but both parties are still aware that they are bound together by their shared civilizational values as well as their historical and geographical characteristics. 

That is why they must be able to demonstrate unity and strategic solidarity in security and defence issues, regardless of what happens in the other areas after their separation.

Although the post-Brexit UK will not be a part of the EU’s common foreign and security policy, it is still important for both parties to come to an agreement on their future cooperation in the following areas:

1.

Even though the EU does not have a common defence force, the UK is involved in 7 of the EU’s 16 current operations at strategic command level with over 200 military personnel. The question is: can the UK remain a part of EU military operations and, if so, at what level and under what conditions?

2.

The information exchange between the Member States and the British intelligence services has been ensured by EU legislation, which was greatly beneficial for both parties at the time of growing organized crime and terrorism. The British intelligence service is among the best, so it is a great loss for the EU. On the other hand, the UK will lose its highly advantageous membership in Eurojust and Europol, so the country can no longer rely on the benefits of the European arrest warrant and will also lose its access to the Schengen Information System and the European Criminal Records Information System. Can this mutually beneficial cooperation be maintained after Brexit?

3.

The UK has played a vital role in the installation of Galileo, the EU’s navigation and positioning satellite system. Besides providing services for private persons, business entities and public institutions, the system also offers a secure platform for the Member States’ law enforcement and defence agencies. The UK has financially and professionally contributed to the system’s development and it also hosts some of the infrastructure. Under what conditions can the post-Brexit UK remain a part of this key infrastructure, especially considering that Europe’s major global competitors have already developed and set up their own systems?

4.

Of all EU Member States, the UK has the largest defence budget, which is also reflected in the fact that the country supplies 25 per cent of defence procurement within the EU. The British military industry has a similarly high share within the EU in terms of R&D. As far as defence budgets are concerned, France is the only country to be near the British level, all other Member States are far below in this regard. How will Brexit affect UK-EU relations in terms of defence industry development, research and procurement? 

5.

At present, the Dublin III Regulation establishes the criteria and mechanisms for determining which Member State is responsible for examining an asylum claim made in the EU. What laws will regulate the examination of asylum claims in terms of the EU and the UK at a time of an intensively growing migration pressure? 

With our continent having to face increasingly difficult geopolitical challenges with fewer and fewer allies by its side, the UK and the EU will need to continue their cooperation in the area of security and defence policies as both the EU and the UK will face the same external threats. 

That is why the EU presidency has an enormous responsibility to make a compromise, at least in the area of security policy. It is a common interest for all of us.

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