Hungary's Orbán reveals what kind of democracy he wants

There are still reserves in the Hungarian economy

The 3.9% year-on-year GDP growth in the second quarter is a “logical consequence [...] of everything that took place in Hungary over the past 4.5-year period," Orbán evaluated Hungary’s latest growth data which was biggest one in the EU in Q2.

Hungary’s current situation in the EU is easier because it is no longer a question whether the economic policy measures and reforms will once come to fruition because “this is a fact".

He said it is promising that growth is picking up in a trendlike fashion and so it is not the result of a one-off deal or a trick. He also hopes this is not a peak in growth rather a plateau, i.e. the rate of growth will be maintained.

As regards the sustainability of growth Orbán said it was promising that fast GDP growth came to pass while one of the engines, household consumption, does not even kicked in due to the large debts people still have. Although the relief package for FX borrowers was not addressed this time, the PM said that with this assistance in the background “there is reserve in the Hungarian economy" when it comes to consumption.

The data attest that “this Hungarian model is operable and successful" which is related to the fact that in 2010 “1.8 million working people paid taxes" in Hungary (in view of 3.5 million personal income tax returns this Orbán is definitely wrong about this - editor’s note) “while now 4.1 million people pay taxes."

“We can and must set as our objective a Hungarian economic model built on five million working people," he said. The goal is to “expand a work-based economy on the entire society, because a lot of people are still not part of it yet."

From GDP to democracy concept

Getting back to the GDP data Orbán said the final explanation to the fast growth is a single fact, namely that “Hungarian people do want to work".

“It has already been clear that they can work" only a few of them could but now “a great many people want to work".

The PM noted that “now the private economy cannot offer as many jobs as would be needed [...] therefore under such circumstances you should not think along the lines of the logic of a liberal democracy."

Besides jobs created in the private sector the desire to make a living needs to be turned into job possibilities, so “the state needs to create jobs. This is one of the most important characteristics of the Hungarian model. This is not typical in the west."

The liberals, he added, the private sector needs to assisted so that it could create as many jobs as possible. “I agree with this, but if there is a crisis situation, because we are also part of the west so in this sense we are also part of the crisis zone, then the state needs to ensure supplementary work opportunities. This means that up to “many hundreds of thousands of job opportunities must be created if needed," Orbán argued in favour of the public work scheme.

What we want is not liberal democracy

Hungary’s relationship with the new European Commission to be set up in the autumn was also discussed in the interview. In this regard, Orbán said that with Tibor Navracsics as commissioner he is certain there will be good co-operation between Budapest and Brussels, because the EU needs success stories. He declared that “the Hungarian economy is a success story [but] there are many who would like to portray Hungary as the black sheep" because we have diverged from the EU/IMF crisis management recipe and are building a Hungarian model.

He added: "we are saying it openly that we do not want to build a liberal democracy, but a democracy, which, however, does not build exclusively on individual interests, but such that considers public good the most important" aspect and at the same time “respects freedom, human rights and cultural values."

PM Orbán’s speechdelivered recently near Baile Tusnad, part of neighbouring Romania with large numbers of ethnic Hungarians, in which he has practically announced that Hungary is was done with liberal democracy, flicked a switch in quite a lot of people’s mind. Renowned opinion shapers and global press condemned the speech and its controversial content.Orbán played down the critical voices saying “it’s always like that" and this whole debate is a question of genre. He revealed that even within Fidesz and among his own advisors many people are of the view that “there is no need for this genre in politics", namely that “a politician should not give thought-provoking speeches."Those opposing his stance on such speeches say it is other people’s business, the job of professors and scientists, to hold thought-provoking lectures, but he has a different opinion about this.

“I believe that Hungarian Prime Ministers see things more deeply and from a unique perspective that only they have, because there is only one Prime Minister. They see into European politics, the witches’ cauldron and the processes that go on there from a unique perspective and to such a deep extent that I think is interesting for Hungarians who want to think to see what the world looks like from here, from where I complete and perform my work."

“And for this reason I undertake the odium of having to accept losses and attacks at such times, in the interests of provoking thought," he added.

About Russian sanctions...

As regards the Russia-Ukraine crisis, Orbán said: “We find ourselves in an unusual situation that occurs rarely, and I hope it will occur more often in future, whereby the standpoints of the Slovakian government and Hungarian government coincide. So I agree with Prime Minister Fico that this policy of sanctions that the West, that we ourselves are practicing and which necessarily results in what the Russians are doing hurts us more than it does the Russians."

“In politics we call this shooting ourselves in the foot," he added.

The PM stressed we are not just talking about the fact that the EU must in some way compensate those farmers who suffer losses, be they Polish, Slovakian, Hungarian or Greek, “but also about the fact that it would be worth re-thinking this whole policy of sanctions."

For his part, he said, he has “never believed that a policy of economic sanctions can be effective, and I have always been completely sure that that within an economic system built on exports, and the Hungarian economy produces goods for export; so for a country that wants to sell its products anywhere in the world any kind of economic sanction goes against national interests."

Orbán added that “the policy of economic sanctions is contrary to Hungarian national interests."

“I am doing everything possible, although we all know what weight Hungary has and the possibilities are clear, and am searching for suitable partners to help change the European Union’s, in my view, not suitably well thought out policy of sanctions."

... and about attacks in NATO

Asked whether he agrees that in the current situation there is a need for sanctions of some kind, if not economic sanctions, he responded that it is “high time that we organised a high-level conference with the participation of the European Union and Russia, where future cooperation between the European Union and Russia and individual long-term issues related to that cooperation should all be put onto the agenda."

“One such important issue is Ukraine and Ukraine’s territorial integrity, which Hungary is otherwise defending, and which we think should be maintained," he said.

Orbán stressed, though that this is about more than Ukraine; also at issue is how Russia and the West, and within that how the European Union and Russia, will live side-by-side in the upcoming decades.

“We should put military issues, economic issues and territorial issues on the agenda within the framework of a large, European Union - Russia conference."

As regards Hungary’s defense policy he said one must speak not only about successes but major difficulties, as well. One of these is that as a NATO member state Hungary (and every other member state) must spend 2% of its GDP on defence, whereas Hungary’s defence spending is only around 1%, “for which we are duly criticised by our allies for being a country that relies to a great extent on its membership of NATO for its security while not contributing to maintaining our joint security to the extent required and not properly conforming to the related treaty. So there is plenty to re-think and these issues are regularly on the agenda [...]."

He added that for this reason he has a regular working relationship with the Minister of Defence, perhaps to a greater extent than with his other ministers.

Let's add some context here

“Remarkable comments from Orbán - accepting that Hungary is an "illiberal democracy"! And Hungary is looking to another model - this comes after his latest landslide election victory," commented Timothy Ash, a London-based strategist at Standard Bank, in an emailed not to clients on Friday.

“Not sure how this square's with basic European values, let’s see how the EU reacts. But the message for some time has been that Orbán has been setting a new course/direction for Hungary, of a more centralised state (forged around the ruling party, Fidesz) - a softer version perhaps of Putin's own "power vertical", shaped around a larger role for the state and aimed at strengthening Hungary national interests, national identity, and building a Hungarian entrepreneurial business elite - promotion of Hungarian business interests above those of foreign capital."

As for Orbán saying Western sanctions on Russia do not work and that with these the West has shot itself in the foot, and that there needs to be a rethink of policy towards Russia, Ash added some context.

“Orbán, the anti-Communist fighter of 20-odd years ago, recently signed a EUR 10 bn financing programme with Russia. Russia provides cheap credit, and the nuclear kit, and Orbán and Hungary get longer term energy independence - aside from buying the fuel rods I guess."

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