The European Union’s idea that certain countries let immigrants in and then they distribute them among the other member states is crazy, said Hungary’s Prime Minister Viktor Orbán in an interview with public radio MR1 on Friday. He has also talked about the idea of reintroducing capital punishment in Hungary, the settlement of unfair charges on foreign currency loans and the upcoming reduction of the bank tax. The central bank’s (MNB) proposal to convert foreign currency car loans and personal loans into forint makes sense and the cabinet is working on this subject, Orbán said. Although the central bank recommends putting into law that banks must boost lending in exchange for the reduction of the bank tax, but the PM said he does not share this view for now.
Immigration
If we do not regulate immigration then we are effectively announcing a dorm party, letting everyone in. It cannot go on like this. Today migrants are still passing through us, but the Germans and the Austrians are not dupes. If they prevent immigrants from entering then they will stay here with us as if [the country was] a large bag, Orbán explained.
I think it is a crazy idea that a country would allow immigrants to cross its borders then it would distribute them across the other EU member states. This is unfair, he said, adding that every country should protect its own borders.
In his view, the solution would be if the “sending" countries addressed the issue as the problem needs to be solved at its root. The boats of human smugglers must be seized and refugees must be prevented from taking off.
He also noted that immigrants cannot arrive in Hungary by sea no matter how badly we would want it to be possible.
If the EU does not force rules upon us, if we manage to get rid of these then we will solve this problem, Orbán stressed.
The PM said correct but strict measures are needed against those who cross the border illegally. The previous legislation needs to be brought back, he added.
Hungary’s Prime Minister Viktor Orbán speaks in an interview in the studio of public radio MR1 Kossuth on 8 May 2015.
When asked why Orbán has recently brought up the issue of capital punishment (in relation to the 22 April murder of a tobacco shop saleswoman), the Prime Minister responded that “I assume that when such a brutal crime is committed people feel that they are not safe. Some think that capital punishment is needed as a deterrent."
Orbán said people should think what they would do if it was their child who got murdered. This is a very tough question and a debate [about the possible reintroduction of the death penalty] facilitates a balanced approach, he added.
The political aspect of the issue is that Hungary wants to form a public opinion in Europe that capital punishment would be once again a national discretion. Every country should be able to decide for themselves. The first step is to give back the right to member states to decide on their own, like they do in some states of the USA.
Asked whether he personally advocates capital punishment Orbán responded: “I am an advocate of life [but] we must be able to protect the law abiding, innocent citizens that cannot protect themselves."
Asked about the central bank’s proposal to convert foreign currency car and personal loans into forint after the conversion of FX mortgages, Orbán said this would make sense and the cabinet is already working on it.
Whether we could pull it off or not, I cannot responsibly say just yet, but we are working on it, he said.
He also noted that the cabinet finds the junior governing member Christian Democrat’s (KDNP) proposal to introduce personal bankruptcy suitable for debate.
Bank tax reduction
The planned reduction of the bank tax is included in the 2016 draft budget and an agreement to this end was signed with Erste Bank and EBRD in February. The related document did not say that the cut of the windfall tax on the financial sector is conditional to increased lending by the banks, but government and central bank officials have been constantly alluding that it should be.
In this regard Orbán said the cabinet is trying to co-operate with the Hungarian Banking Association.
He has acknowledged that the central bank suggests prescribing it in law for the banks to boost lending in return for the lower bank tax. I would give ourselves a year and then take a look whether lending increased without the banks being forced by law. If it does, there’s no need for coercion. If it doesn’t we could still get back on this issue, Orbán said. This suggests the cabinet may decide a year from now not to respect what it agreed to with Erste and the European Bank for Reconstruction and Development.
Hungary’s handling of the country’s brokerage scandal violated an agreement signed with the EBRD in February on taking a combined stake of up to 30% in Austrian Erste’s local unit, Erste Bank Chief Executive Officer Andreas Treichl said on Thursday.
A government and a central bank official have recently addressed the planned bank tax reduction. Márton Nagy, executive director of the MNB, confirmed to business daily Napi Gazdaság on Wednesday that the bank tax will be reduced but stressed that not every bank will feel the same impact. Remarks by Economy Minister Mihály Varga to public radio MR1 on the same day suggest that the cabinet might indeed reduce the levy in exchange for increased bank lending. An Economy Ministry state secretary denied this kind of conditionality two weeks ago.
Charting is displayed using TradingView's technology, a platform, where you can build advanced charts,
spot upcoming trends in the stock screener, and find inspiration in multiple trading ideas
