Paks nuclear plant project

LMP initiates referendum on ‘Paks 3’ plan

paks

Green opposition LMP on Friday said it has submitted referendum bids in connection with the planned addition of further new blocks to Hungary’s sole nuclear power plant in Paks. 

Last week, János Süli, minister without portfolio in charge of the upgrade of the Paks plant, suggested that further blocks should be added to the planned two new blocks to meet Hungary’s increased future energy demands. Suli argued that the country’s power demand could reach 5,000 megawatts by 2030.

Only the Hungarian people have a right to decide on the use of nuclear energy in Hungary,

LMP board member Péter Ungár said in a statement.

He said the National Election Committee (NVB) would have no choice but to approve LMP’s referendum questions, since they do not concern international agreements.

The NVB has repeatedly said that

the Paks 2 project is ineligible for a referendum as it is governed by an international accord.

Ungár said Süli recently “admitted” that the upgrade of the Paks plant would begin a year later than originally planned. He insisted that this proved that the government was unfit to carry out or even prepare the project.

Hungary signed an agreement with Russia on the construction of two blocks at the Paks nuclear power plant in 2014.

As we wrote on Wednesday, projections show that there will be a shortage of energy capacity in Hungary in 2030 after the current Paks nuclear power station expansion project is completed, so further development plans are needed, János Süli, the minister in charge of the upgrade project, told a hearing in parliament’s national security committee on Wednesday.

Further developments needed in Paks after 2030, says minister

paks

Projections show that there will be a shortage of energy capacity in Hungary in 2030 after the current Paks nuclear power station expansion project is completed, so further development plans are needed, János Süli, the minister in charge of the upgrade project, told a hearing in parliament’s national security committee on Wednesday. 

In response to a question by green opposition LMP’s co-leader Bernadett Szél concerning a possible “Paks 3”,

Süli said no physical space for further blocks would be available at Paks following the current expansion,

and a large base power station would be needed in addition, which included not only a nuclear power station but also solar, wind and water generation.

The committee’s (Socialist) head, Zsolt Molnár, called for a permanent committee to be set up to monitor the current Paks 2 project. Süli said if parliament decided to set up such a committee, the government would support it.

Concerning the planned expansion to be carried out by Russia‘s Rosatom, state secretary in charge of maintaining Paks, Attila Aszódi, said rules stipulate the protection of each side’s business secrets. The Hungarian side has no objections concerning the publication of information which is not classified data, but the

Russian main contractor also has the right of veto,

he added.

Szél asked whether the Hungarian government bore responsibility for the current 22 month delay in the expansion project whether the Hungarian taxpayers would bear any additional costs. She also repeated a demand for the exact total cost of the project to be revealed.

Aszódi said in response that the budget law included the allocations for Paks each year, so this data was in the public domain. Commenting on the delay, he said the European Commission was carrying out an in-depth examination of the project at the request of the Hungarian government. This has resulted in a stand-still which was neither the Hungarian nor the Russian side’s responsibility. The basic contract and the fixed price remains the same, however, he added.

In August, Foreign Minister Péter Szijjártó said preliminary work on the 12 billion dollar Paks upgrade would start in January next year.

Hungary signed an agreement in Moscow in January 2014 on the construction of two blocks at the Paks nuclear power plant by Russia’s Rosatom.

Photo: Daily News Hungary

Paks upgrade minister advocates construction of further blocks

Paks nuclear plant

János Süli, minister without portfolio in charge of the upgrade of the Paks nuclear plant, has suggested that further blocks should be added to the planned two new blocks to meet increased demand in future.

Speaking at a conference organised by economic research firm Századvég on Thursday, the minister argued that

the country’s power demand could reach 5,000 megawatts by 2030.

Concerning the current upgrade, Süli said that construction of the site buildings would start in January next year, while construction of the actual blocks was expected to begin in 2020. The new blocks would be completed in 2026 and 2027, respectively, he added.

Süli said that the project would require between 60 and 70 site buildings such as assembly halls, workshops, and offices.

The project will employ a staff of over 8,000, he added.

The minister also noted that currently 30-32 percent of Hungary’s electricity is imported, and the new blocks are expected to utilise 93 percent of their capacity.

Photo: atomeromu.hu

Hungary to enter long term gas delivery agreement with Russia from 2021

After its current agreement on delivery of natural gas runs out, Hungary will enter into a long-term agreement with Russian state-owned gas giant Gazprom starting from 2021, Foreign Minister Péter Szijjártó told MTI on Wednesday in Moscow.

As part of the agreement,

Gazprom is storing 900 million cubic meters of natural gas in Hungary’s storage facilities,

Szijjártó said.

“The construction of the southern gas corridor is also clearly progressing according to plan”, Szijjártó said. “If we manage to keep to schedule,

6 billion cubic meters of gas will arrive at Hungary’s southern borders by the end of 2019″,

Szijjártó said.

These developments, together with the upgrade of the Paks nuclear plant by Russian state-owned company Rosatom, are “significant steps forward” in ensuring the country’s energy security, Szijjártó said.

Speaking at a roundtable discussion at the Russian Energy Week, Szijjártó said that the upgrade of the nuclear plant with two new reactor blocks went beyond building the facility itself and amounted to a comprehensive economic development plan. The project is “the best investment” for Hungary, he said, “with an optimum financing structure in cooperation with the best player in the nuclear energy sector”.

During his two-day visit to the Russian capital, Szijjártó held talks with Gazprom head Alexey Miller, energy minister Alexander Novak and Alexey Likhachev, head of Rosatom.

Russian Rosatom pledges full transparency for Paks expansion project

Paks nuclear plant

The contracted preparation and construction of the Paks nuclear plant upgrade will be fully transparent throughout the entire investment and will comply with European Union directives, Alexey Likhachev, head of Russian energy giant Rosatom, said in talks on the construction phase with János Süli, the minister without portfolio responsible for the project.

The first phase of construction is scheduled to start in January 2018, Süli said, with the building of the construction village at the site.

Likhachev, heading a large delegation, said that

the two future “generation 3-plus” reactors of the Paks nuclear plant “are virtually twins to those soon to be switched on near St. Petersburg, and live up to the highest quality requirements”.

He said he saw “no obstacle” to the project starting next January. The purpose of his visit, he said, was to agree on the most important tasks in connection with starting construction.

Süli said the presence in Paks of Rosatom’s chief in itself confirmed that work to begin the project was irreversible.

Rosatom aims to employ local suppliers for 40 percent of contracted tasks during the investment, Likhachev said. They expect to surpass this ratio in the first phase of the construction, he said.

“It is an absolute must for us to strictly keep to the schedule, and … [Hungary] is also committed to working according to the schedule,” Likhachev said.

“The real construction work will start in January and nothing will stop the investment from now on,” Szijjártó told reporters after talks between Prime Minister Viktor Orbán and Russian President Vladimir Putin, who visited Hungary on the occasion of the World Judo Championships.

As we wrote yesterday, the decision on extending the operating life of block 4 of Hungary’s sole nuclear power plant in Paks could be made by the end of the year, a national development ministry official was quoted as saying at the International Atomic Energy Agency’s (IAEA) most recent general assembly in Vienna on September 18-22.

Photo: atomeromu.hu

Decision on Paks block 4 lifespan could come by year’s end

paks

The decision on extending the operating life of block 4 of Hungary’s sole nuclear power plant in Paks could be made by the end of the year, a national development ministry official was quoted as saying at the International Atomic Energy Agency’s (IAEA) most recent general assembly in Vienna on September 18-22.

Nuclear energy ensures a stable supply of electricity for consumers in Hungary and could cover a significant fraction of domestic energy demand in the future too, the ministry quoted state secretary for energy affairs András Aradszki as saying at the IAEA’s 61st general assembly, in a statement.

In his address, the state secretary noted that

the Paks upgrade project had received the necessary environmental protection permit as well as the site permit.

Since April, the project is being overseen and managed by a minister without portfolio, he added.

The lifespan of the plant’s third block was extended last December.

Hungary’s National Atomic Energy Office earlier extended the lifespans of the plant’s number one and number two blocks by another two decades past the originally planned 30 years. The Paks nuclear plant project will cost altogether 12 billion dollars. As agreed previously, the contribution of Hungarian suppliers will account for 5 billion dollars, namely 40 percent, he said.

The four blocks at the Paks plant account for almost 53 percent of domestic electricity generation.

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Photo: Daily News Hungary

Nuclear power plant Paks upgrade to start in January

The upgrade of Hungary’s sole nuclear power plant in Paks will begin early next year, Péter Szijjártó, Hungary’s foreign minister, said on Monday.

“The real construction work will start in January and nothing will stop the investment from now on,” Szijjártó told reporters after talks between Prime Minister Viktor Orbán and Russian President Vladimir Putin, who visited Hungary on the occasion of the World Judo Championships.

The two sides made no new decisions but reviewed the implementation of their previous agreements. They agreed that “their joint decisions made earlier have started to bear fruit”, Szijjártó said.

Orbán and Putin confirmed what János Süli, the Hungarian minister in charge of the upgrade project, and the president of Rosatom had agreed upon on Sunday, he said.

Accordingly, the upgrade will start in January next year “after a 22-month delay” while Brussels examined if the project complied with EU rules, Szijjártó said.

The project will cost altogether 12 billion dollars. As agreed previously, the contribution of Hungarian suppliers will account for 5 billion dollars, namely 40 percent, he said.

Hungary signed an agreement in Moscow in January 2014 on the construction of two blocks at the Paks nuclear power plant by Russia’s Rosatom.

As we wrote last week, Putin will get the honour in recognition of “the major role the Russian Federation and Hungary assign to the Debrecen University in the upgrade of the Paks nuclear plant”, the senate of the university said.

Szijjártó welcomed that after a long decline caused by EU sanctions and other global economic factors bilateral trade started to grow again this year, with a 34 percent rise registered until late May. Within that, Hungarian sales grew by 30 percent, mainly due to a 44 percent growth in pharmaceutical export and a 89 percent increase in grain sales.

Szijjártó noted that a direct flight had been launched between Budapest and Saint Petersburg. He said that in September 184 Russians will start studying in Hungarian universities, adding that the Russian health minister on Monday agreed to increase the state scholarships granted to Hungarian students to 100.

Putin confirmed that Russia was making efforts to supply natural gas via Turkey, Bulgaria and Serbia to Hungary and Austria, Szijjártó said.

The minister said that Bulgaria, Serbia and Hungary would upgrade parts of their natural gas pipelines to allow the transport of up to 10 billion cubic metres of Russian gas by the end of 2019.

Asked about opposition activists protesting in the sports hall against Putin’s visit, Szijjártó said that “everybody has the right to express their opinion”.

Photo: MTI

Majority supports Paks nuclear power upgrade in Hungary

Paks nuclear plant

Some 54 percent of Hungarians support the planned construction of two new blocks of the Paks nuclear power station, national energy company MVM said on Thursday citing the results of a new survey.

Two-thirds of Hungarians believe that the upgrade will reduce Hungary’s energy dependence, the company said citing the representative survey made by Network 360.

The survey showed that 36 percent of Hungarians oppose the planned construction and 10 percent did not take a position.

A total of 51 percent said they would be unwilling to pay more for electricity if it was produced from renewable energy instead of nuclear energy.

The majority of Hungarians said nuclear energy is best to secure continual electricity supplies.

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As we wrote today, Russian President Vladimir Putin will get the honour in recognition of “the major role the Russian Federation and Hungary assign to the Debrecen University in the upgrade of the Paks nuclear plant”, the senate of the university said.

Photo: atomeromu.hu

Debrecen University to honour Russian President Vladimir Putin

putin

The University of Debrecen is to award Russian President Vladimir Putin the title “civis honoris causa”, its website said on Thursday.

Putin will get the honour in recognition of “the major role the Russian Federation and Hungary assign to the Debrecen University in the upgrade of the Paks nuclear plant”, the senate of the university said.

The east Hungarian university is to train experts for the project.

Hungary signed an agreement with Russia on the construction of two blocks at the Paks nuclear power plant in 2014. The minister in charge of the investment project, János Süli, said in May that the two new blocks would become operational by 2026.

Putin will visit Hungary for the second time within a year. The President of the Hungarian Judo Federation confirmed that the Russian president had accepted the invitation of the federation and would attend the opening ceremony of Judo World Cup on August 28.

Photo: MTI/EPA/Makszim Sipenkov

LMP threatens legal action over Paks data requests

Paks nuclear plant

Green opposition LMP has threatened to take legal action over two public data requests concerning the upgrade of the Paks nuclear power plant if the data they seek are not released.

LMP is seeking the release of a memorandum of understanding signed between Hungarian state-owned energy company MVM and Russia’s Rosatom, the general contractor for the Paks upgrade project, “which the Hungarian public only found out about” through the international press, Péter Ungár, the party’s board member told a press conference on Thursday. He said their data request was denied by the cabinet on the ground that the MoU did not concern public interest.

He said his party also wanted to know how much public-service media provider MTVA had spent on “propaganda material” about the Russian nuclear plant “serving as a template” for Paks 2.

Ungár said the project was a way for the ruling parties to “fund their business circles” from Russian loans after European Union funding for Hungary dries up.

Featured image: www.atomeromu.hu

LMP demands government should stop Paks upgrade project over earthquake concerns

paks

The green opposition LMP demands that the government should discontinue preparations for an upgrade of Hungary’s sole nuclear plant at Paks over recent concerns of a possible earthquake in the region.

LMP’s Péter Ungár told a press conference on Wednesday that “it has turned out that the government cannot guarantee the security of residents” in light of a recently published study which suggested “serious geological concerns” around the location of plant.

Ungár also suggested that the government’s aim was to draw funds from the Russian loan designed to finance the project and channel them to businesses closed to the ruling Fidesz party. “Neither security nor technical considerations will prevent them (the government) from doing so,” he insisted. “An expensive Russian loan cannot be turned into cheap Hungarian electricity,” he added.

As we wrote yesterday, the National Election Committee on Tuesday threw out three referendum initiatives concerning the upgrade of the Paks nuclear plant.

Photo: Daily News Hungary

Election Committee rejects referendum initiatives concerning Paks upgrade

Paks nuclear plant

The National Election Committee on Tuesday threw out three referendum initiatives concerning the upgrade of the Paks nuclear plant.

The referendum questions were proposed by co-leaders of the green opposition LMP party Bernadett Szél and Ákos Hadházy.

The first question read: “Do you agree that a new nuclear block should not be built in Hungary before parliament passes legislation concerning the final storage of spent, high radiation fuel rods?” The committee rejected the initiative saying that it would impact an international agreement. They also said it was “misleading” because “it appears to concern storage, while in fact it is aimed at thwarting the upgrade”.

The second question would have read “Do you agree that the combined output of nuclear blocks in Hungary should not exceed 2,000 MW?” The committee again said that the question would be in conflict with an international agreement, adding that it was also misleading, because it suggests that a referendum could thwart the Paks upgrade. The committee noted that a referendum held now would be binding for parliament until 2021, while the planned new blocks at Paks will not be completed until 5 years later.

The third question was aimed at legislation banning the storage of highly radioactive waste in Hungary. The committee said that it would also impact an international agreement because the Hungary-Russia deal on the upgrade project includes provisions for handling fuel rods. They added that a positive referendum would also involve Hungary’s having to negotiate with a third country, which it cannot do on its own under the Euratom Agreement.

The decisions are not binding; the proponents have 15 days to appeal to the supreme court.

As we wrote, the upgrade of Hungary’s sole nuclear power plant in Paks is ineligible for a referendum as it is governed by an international accord, the head of the National Election Committee (NVB) told on June.

Photo: atomeromu.hu

Kúria turns down DK appeal concerning higher education law and okays rejection of LMP’s Paks referendum

court antifa case

Hungary’s supreme court, the Kúria, on Tuesday turned down an appeal by the leftist opposition Democratic Coalition (DK) against the National Election Committee’s (NVB) decision to reject the party’s referendum initiative in connection with the higher education law affecting the Central European University (CEU).

DK’s referendum question, submitted on April 5 and rejected by the NVB later in April, said: “Do you agree that a higher education institution recognised by a state party to the agreement of the Organization for Economic Co-operation and Development (OECD) should continue to undertake educational activity towards foreign degrees based on their registration in Hungary?”

In its Tuesday ruling, the Kúria said that DK’s appeal was “unfounded”, while DK’s referendum question was not clear enough.

The ruling cannot be appealed.

Kúria okays rejection of LMP’s Paks referendum

The Kúria, Hungary’s supreme court, on Tuesday upheld a decision by the National Election Committee, under which the opposition LMP party cannot initiate a referendum concerning the upgrade of the Paks nuclear plant.

The Kúria referred to the constitution and said in its binding decision that questions affecting international agreements cannot be put to a plebiscite.

Through its referendum initiative, LMP sought public support to thwarting the Paks project unless at least one third of Hungary’s energy production, including the planned two new blocks at Paks, would be ensured through using renewable energies.

Election cttee rejects referendum bids on Paks, higher education

Daily News Hungary

The National Election Committee (NVB) rejected nine referendum initiatives at a meeting on Thursday.

All the questions were submitted by the same private individual.

One question asked whether all nuclear plant blocks which start operating after January 1, 2018 should be terminated after 180 days of operation. The committee unilaterally rejected the question as one warranting changes to the constitution and international agreements, and cited the upgrade of Paks, Hungary’s only nuclear plant.

Another question asked whether higher education institutions accredited by parliament should operate under the Hungarian higher education law. The NVB unilaterally rejected the question, saying “the question would give the impression to voting citizens that they could bring about a decision regarding foreign universities”.

A further question proposed that individuals making the confidentiality declaration required by law should be allowed access to the documents of the communist-era secret services from 1944 to 1994. The question was rejected as it would warrant changes to the Constitution.

Meanwhile, the committee also ordered the monitoring of signatures collected by a European citizens’ initiative, “Mum, Dad and Kids”, proposing that “traditional concepts of marriage and family” be used in the EU.

Rosatom and MVM sign memorandum of understanding

State-owned energy company MVM and Russia‘s Rosatom, the general contractor the upgrade of Hungary’s Paks nuclear power plant, signed a memorandum of understanding at the international Atomexpo 2017 on Monday in Moscow.

The parties want to enhance their cooperation for servicing the Paks power plant, supplying the plant with nuclear fuel, carrying out join nuclear projects in Russia and third countries, for training specialist and for research and development initiatives, according to the MoU.

MVM chairman-CEO Péter Csiba said the companies were bound together by a past which formed a reliable basis for cooperation in old and new areas.

Rosatom deputy-CEO Kirill Komarov said more cooperation between the companies would help technological innovation.

IEA praises Hungary’s energy security measures

The International Energy Agency (IEA) welcomed Hungarian measures to boost energy security and reduce emissions, but recommended a gradual return to full liberalisation on the retail energy market in an assessment of the country’s energy policies released on Thursday.

“We applaud Hungary’s achievements in reducing the carbon intensity of its economy, building energy infrastructure and strengthening energy security, most notably via gas storage,” IEA Executive Director Fatih Birol said in a statement released by the agency.

“Hungary has made progress in diversifying its energy supplies and increasing competition in the energy sector, but there is still more to do on both fronts,” he added.

The IEA noted in the assessment that Hungary’s government had mandated utilities price cuts for households starting in 2012 and had later established a state-owned energy retailer that acquired a number of its foreign-owned peers. Although acknowledging that the price cuts had “boosted the purchasing power of households”, it warned that the consolidation in market power “is likely to have repercussions on the investment climate in the energy sector and on competition in the retail sector”.

It recommended that the government “develop a clear and transparent programme for the implementation of full retail market liberalisation, including the elimination of administratively determined end-user prices”.

The IEA also recommended improved implementation of Hungary’s National Energy Strategy to 2030, more ambitious energy efficiency targets and compliance with EU principles, rules and regulations with regard to the upgrade of the Paks nuclear power plant.

PM Orbán holds talks with IEA chief

Prime Minister Viktor Orbán held talks with Fatih Birol, the executive director of the International Energy Agency (IEA), in Parliament on Thursday, Orban’s press chief said.

They discussed global energy security issues, Bertalan Havasi said, adding that the IEA chief praised Hungary’s energy security measures.

Birol also commended Hungary for its efforts taken to reduce the country’s greenhouse gas emmission, he said.

He welcomed the drafting of Hungary’s 2030 National Energy Strategy published in 2011 as a significant step in the right direction.

Lawmakers approve 2018 budget in Hungary

parliament Hungary

Parliament approved on Thursday the government’s 2018 budget bill.

The bill was approved with 127 votes in favour and 62 votes against.

The 2018 budget targets revenue of 18,751.5 billion forints (EUR 61.2bn), expenditures of 20,112.1 billion forints, leaving a deficit of 1,360.7 billion forints.

The deficit is over the 1.166.4 billion forint gap targeted for 2017.

The 2018 deficit target as a percentage of GDP is 2.4 percent, calculated with European Union accounting rules.

Operating revenue and expenditures will balance out, while investments will create the deficit.

The budget targets 4.3 percent GDP growth, up from 4.1 percent projected for 2017. It assumes an inflation rate of 3 percent.

The small business tax will be reduced by one percentage point to 13 percent. Tax benefits for families with two children will rise, leaving them with an additional 420,000 forints a year in disposable income on average. VAT rates on catering, fish and internet service will be reduced to 5 percent, he said. The former two have so far had a VAT rate of 27 percent, and the latter one a 18 percent rate.

The budget allocates 81 billion forints more for education, 287 billion forints more for pensions and social services, 83 billion forints more for the police and security and 205 billion forints more for economic development. It earmarks 226 billion forints for home purchase subsidies for families.

The budget targets a drop in public debt to 28,358.7 billion forints on the last day of 2018, calculating with a HUF/EUR exchange rate of 309.3. As a percentage of GDP, public debt is set to decline to 69.5 percent from a targeted 71.4 percent at the end of 2017.

The bill puts net interest expenditures at an accrual-based 960.2 billion forints next year. The bill’s authors note that, according to the EU accounting rules, the government sector will still run a primary surplus equivalent to about 0.2 percent of GDP next year. The primary balance excludes interest expenditures.

The 2018 budget bill targets corporate tax revenue of 362.6 billion forints, down 51 percent from the target in the 2017 budget. Revenue from the bank levy is set to fall by 24 percent to 50.4 billion forints next year. Revenue from the financial transactions duty is set to stagnate at 204.7 billion forints.

The budget bill targets VAT revenue of 3,090.7 billion forints, up by 25 percent from the 2017 target. Revenue from excise tax is targeted at 1,099.3 billion forints, 6 percent over the respective target for this year.

Personal income tax revenue is targeted at 2,090.2 billion forints, almost 17 percent over the target for this year. Revenue from retail duties and fees is seen climbing by 22 percent to 188.6 billion forints, according to the bill.

Revenue from kilometre-based commercial road tolls is 15 percent higher, at 177.7 billion forints, in the 2018 budget bill.

The 2018 budget bill shows payroll costs of Hungary’s state school manager are targeted at 419.6 billion forints, 5 percent over the target for this year. Payroll costs at universities and colleges will rise by 14 percent to 222.3 billion forints and payroll costs for the human resource ministry’s social and child services is set to climb 18 percent to 81.6 billion forints.

Wages in the private sector are also expected to climb next year, lifted by an agreement reached late last year on raising the minimum wage. The agreement raised the minimum wage for unskilled workers by 15 percent and the wage for skilled workers by 25 percent from this year. The increase was paired with a 5-percentage-point drop in the payroll tax. Next year, the minimum wage is set to rise by 8 percent for unskilled workers and 12 percent for skilled ones, while the payroll tax will fall by a further two percentage points.

The budget bill‘s allocation for the fostered work scheme, which the government is gradually winding down, is 31 percent lower at 206.7 billion forints.

In the budget chapter on the Prime Minister’s Office, the bill sets aside reserves of 110 billion forints for central contingency measures and puts 60 billion forints in the National Protection Fund, unchanged from the allocations in this year’s budget.

The allocation in the chapter for a capital raise in the project company for the upgrade of the Paks nuclear power plant is 106.7 billion forints and 150 billion forints is earmarked for developments in Hungary’s biggest cities under the Modern Cities programme.

The bill shows a 39.9 billion forint allocation for the preparation and implementation of the Liget Budapest Project, an overhaul of the capital’s City Park.

The Prime Minister’s Office and its related institutions will altogether get 846 billion forints. The budget chapter on the office targets over 51 billion forints in revenues.

The bill allocates 220.1 billion forints for the Ministry of Foreign Affairs and Trade, targeting 6.75 billion forints in own revenue. A total of 71.94 billion forints will go towards funding Hungary’s representative offices.

In health-care spending, funding for general practitioners’ surgeries will rise by 12 billion forints to 124 billion forints. The government will spend 2,315 billion forints on the health insurance fund compared with 2,059 billion forints in 2017.

The police forces will get 218 billion forints and the TEK counter-terrorism force 13 billion forints for personnel expenses. The latter will be given 2.3 billion forints for material expenditures next year.

The defence budget will increase by 77 billion forints to 427 billion forints, or more than 1 percent of GDP. In 2012, the government adopted a resolution in which it pledged to increase defence spending by 0.1 percent of GDP from 2016.

Lawmakers raise 2017 budget revenue, spending targets by 436 billion forints

Parliament on Thursday voted to raise the revenue and expenditure targets of the 2017 budget by 436.4 billion forints (EUR 1.4bn).

Lawmakers approved the amendments with 127 votes for and 62 against.

The amendments raise the revenue and expenditure targets to 17,867.7 billion forints and 19,034.1 billion forints, respectively, leaving the cash-flow-based deficit unchanged at 1,166.4 billion forints.

The amendments top up fiscal reserves for “extraordinary government measures” by 30 billion forints to 140 billion forints. They also add 35.9 billion forints to the National Protection Fund, bringing it to 95.9 billion forints.

Expenditures of the National Development Ministry were raised by 76.6 billion forints.

On the revenue side, corporate tax is set to bring in 127.8 billion forints less, generating 606.9 billion forints, while revenue from sales of state-owned farmland will reach 167.9 billion forints, well over the original target of 5.5 billion forints. VAT revenue is expected to be 53.6 billion forints higher at 2,528.8 billion forints.

Austrian president holds talks in Hungary

Hungary and Austria are both committed to complying with the Paris Climate Agreement and to drafting the rules for its implementation as quickly as possible, President János Áder said after talks with his Austrian counterpart Alexander Van der Bellen in Budapest on Tuesday.

Áder said Hungary and Austria are obliged to make it clear that the US president’s decision to quit the agreement would not affect its implementation.

Áder stressed the importance of the two country’s economic relations and said he and Van der Bellen were in agreement that those ties needed to be expanded further. Austria is Hungary’s second largest trading partner, with an annual turnover of around 10 billion euros, Áder said, adding that Austrian companies employ 70,000-75,000 people in Hungary, and many Hungarians find employment in Austria.

Van der Bellen said that in light of the two countries’ long-standing, “special relationship”, it was not surprising that Hungary and Austria’s economic cooperation was progressing well.

The talks also touched upon Hungary’s planning to upgrade its nuclear plant at Paks, and both presidents concluded that their countries “do not share a position” on nuclear energy. Van der Bellen added, however, that Austria has better conditions to use hydroelectric power.

The Austrian president noted that he had met leaders of Hungarian universities and voiced hope that the tension between the Hungarian government and the Central European University could be eased.

Áder János; VAN DER BELLEN, Alexander
President Áder and President Alexander van der Bellen, photo: MTI

On the subject of migration, Áder said that refugees need to be settled in the first safe country they arrive in, and they must be assisted in returning to their homelands when possible. He said that economic and political refugees need to be distinguished, and added that “now Austria has also changed its position”.

Answering a question on border control, Van der Bellen said that his country’s police were in close cooperation with Hungarian authorities, and were making attempts to avoid traffic congestions at border crossing points.

Szijjártó Péter; Orbán Viktor; VAN DER BELLEN, AlexanderOrbán holds talks with Austrian president

Prime Minister Viktor Orbán and Austrian President Alexander van der Bellen held talks on economic issues and the stability of the Western Balkans.  The two leaders underlined the importance of good neighbourly relations and discussed ways to develop bilateral cooperation, Bertalan Havasi said. It was established that Austria is Hungary’s second largest trade partner, with Austrian companies employing nearly 80,000 Hungarians.

Orbán and Van der Bellen agreed to continue cooperation so as to guarantee stability in the Western Balkans, he said.

Photos: MTI