U.S. Ambassador slams Hungarian policies, rampant corruption, refugee management

Ambassador Bell’s speech has proved wrong those who thought the relationship between Hungary and the U.S. ameliorated after the departure of U.S. Chargé d'Affaires André Goodfriend and that Washington would no longer castigate Budapest’s policies.

Below you can read the key excerpts from Bell’s speech which is available on the U.S. Embassy’s website here:

Positive remarks

• Looking at the broad scope of our engagement, I believe the state of U.S.-Hungarian relations is strong. We are partners, allies, and friends. I speak with you tonight in the spirit of cooperation and mutual respect. I speak tonight as a friend of Hungary.
• [...] our bilateral relationship has seen years of outstanding cooperation and collaboration in matters of security and defense. Hungary remains a strong NATO ally and partner.
• Hungary has also been a great partner in the fields of law enforcement and counterterrorism.
• The United States is strongly committed to supporting Hungary’s efforts to increase its energy security. Free, fair, and open markets, and a diversification of routes and sources are the best ways to achieve this goal [...]
• The United States understands that Russia is an important energy supplier [...] But Russia and all suppliers [...] should compete at market rates, on market terms. No nation should be kept dangerously dependent on any single source for its energy needs.
• We applaud Hungary for its focus on small infrastructure projects to reach its energy security goals - this is a pragmatic, pro-active step forward.
• On the economic front, the United States is one of the largest foreign investors in Hungary and the biggest consumer of Hungarian goods outside the European Union. [...] since 1989, over USD 9 billion worth of U.S. investment has come to Hungary. The U.S. Department of Commerce trade figures for fiscal year 2014 show that our two-way trade was up 35%, with 7% growth in U.S. exports to Hungary, and 28% growth in Hungarian exports to the U.S. Total two-way trade is now over USD 7 billion per year. This is quite impressive.
• American investors I’ve spoken with are attracted to Hungary’s high-quality infrastructure, its highly educated labor force, and its central location. But some tell me that significant obstacles to investment remain.

Negative remarks

• Foreign direct investment in Hungary has not reached its full potential in recent years. And some investors are concerned about stability in the tax and regulatory environment. Companies will invest where there is transparency and predictability, where there are free, fair, and transparent market conditions. Investors must be able to predict regulatory and tax effects on their businesses. Otherwise, the costs of uncertainty will price many potential investors out of a market.
• Corruption stalls growth, stifles investment, denies people their dignity, and undermines national security. Corruption in Hungary is a serious concern - quite clearly a top concern of average Hungarians, as I have heard, and as public polls consistently show. Wherever systemic corruption has effectively undermined fair governance, it creates an environment ripe for civil unrest, resistance to the government, and even violent extremism.
• How do we combat corruption? By reforming government procurement systems, by holding elected officials accountable, including requiring elected officials to disclose their assets. And by building trust with citizens by allowing open access to information that directly impacts them.
• The best way to restore public confidence in the rule of law, and to show that the playing field is level, is to publicize those prosecutions: the names, the crimes, the indictments, the dollar amounts seized, and the convictions and penalties. Public knowledge would help build a bridge of trust with all citizens, across the political spectrum, from every walk of life.
• Just as it would change the game in the energy sector if members of the public could see the details of the Paks II nuclear deal. We look to the Hungarian government to increase transparency, starting with the details of this deal. A free, fair, and open energy market will make a difference. Extreme secrecy within your government goes against the spirit of transparency laws.
• Increasing centralization of power creates conditions that mean that many of the big decisions that will impact Hungary for generations to come remain opaque, and it means that decisions are taken without any opportunity for those who will be affected - the stakeholders - to express their views, concerns, reservations, or even support. We, along with international organizations and other friends of Hungary have raised these concerns persistently over the years - and we will continue to raise them.
• An independent civil society sector is a cornerstone of a functioning democracy. [...] Wherever governments introduce restrictions on civil society organizations, to restrict the space for voices that might differ, we do not see a truly free society.
• A government crackdown on the freedom of several NGOs to operate in Hungary began in 2014, and it has continued this year as well - with persistent audits and investigations. Last year, government officials openly accused several human rights and watchdog NGOs of supporting the opposition and being foreign agents. At one point, there were more than 50 NGOs being audited by the government, including all of the most prominent human rights watch dog organizations and independent civil society advocates.
• The chilling effect of these governmental investigations is widespread, and it casts a long shadow on Hungary’s reputation in the international community. We urge an immediate end of heavy-handed tactics against civil society organizations.
• An independent judiciary, particularly a constitutional court, is crucial to the healthy functioning of a democratic system. [...] The amendments made to the Fundamental Law here over the last few years have diminished the independence of the Hungarian Constitutional Courts [...]
• Hungarian politicians, intellectuals, and members of civil society speak of a marked decline in press freedom. This decline limits discourse and discussion of matters of importance to the Hungarian people. Let’s be clear - Hungary is not a place where journalists are jailed and tortured, and we are not suggesting this is the case. But rather, the concerns we have take the form of concentrated media ownership and pronounced subsidies to state media. These subsidies have the potential to profoundly distort the media business landscape, raising the barrier for any new voices to enter the media market and driving smaller outlets to the brink of insolvency. [...] The Media Council, which should be an ombudsman standing up for an independent press, is filled with appointees from just one political party.
• I understand that Parliament is working to pass changes to the election law in keeping with OSCE recommendations, and the United States supports and welcomes that movement. Those recommendations go to the heart of the matter: they call for changes to campaign finance to provide more transparency and fewer opportunities for corruption, and they make key changes to the way district boundaries are assessed and redrawn and they change the way thousands of voters outside the country are able to cast their ballots. We invented the word “gerrymandering" in the United States, and we will be the first ones to cast a critical eye on ourselves, but that does not mean that we cannot appeal to our friends like Hungary to also aspire to upholding democratic ideals.
• [...] every sovereign nation has the right to protect its borders. But every nation, as a part of the international community, also has a fundamental obligation to help refugee populations seeking safety. Words of intolerance and xenophobic characterizations of refugees - some of the world’s most vulnerable people - as invaders and antagonists have no role in our efforts to find a solution. The choice of some to use this rhetoric is puzzling, because Hungary is better than this. The Hungary I know is strong enough to see possibilities, not imply threats. The Hungarian nation’s sense of itself is not so fragile that it can only be defined by its enemies or by threats. Hungary is strong enough to define itself by its best attributes, by the best achievements and contributions of the Hungarian people and the proudest moments in your history. Your bravery as a people was never defined by the attributes of your adversaries, but by your own strengths and determination.
• Hungary should be strong enough to help to lead within the European Union, to come up with a comprehensive, practical, and compassionate solution to this crisis. We commend the humanitarian spirit of Hungarian leaders, law enforcement personnel, and other citizens who are responding to this crisis with generosity and compassion. We continue to stress that any resolution to these migration challenges should focus on saving and protecting lives, ensuring the human rights of all migrants are respected, and promoting orderly and humane migration policies.

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