Economy 4 April 2020, 4:20pm

PM Orbán confirms Hungary will create as many jobs as wiped out by coronavirus

Portfolio

In his reply written to the General Secretary of the European Trade Union Confederation (ETUC), Prime Minister Viktor Orbán drew attention to the Hungarian workfare economy and the Hungarian experiences gained in the protection of jobs, the cabinet of the Prime Minister's Office said on Saturday.

Luca Visentini, General Secretary of the European Trade Union Confederation (ETUC), has recently written to Prime Minister Viktor Orbán and President János Áder, expressing "deep concern about the set of measures adopted in Hungary to mitigate the economic fallout from the spread of COVID-19, including thelegislation passed on 30th March 2020.

Visentini is not alone with such concerns

The Coronavirus Act gives Orbán’s government the power to rule by decree indefinitely, it also cancels future elections, and imposes harsh restrictions on media freedoms.

Rating agency Moody’s warned on Thursday that the new legislation, which also includes prison sentences for those spreading misinformation and who violate quarantine measures, raises concerns about rule of law and will intensify tensions with the European Union.

Civil rights groups, the European Parliament and the Council of Europe have criticized the law, voicing concerns about the potential hollowing out of democracy, freedom of speech and rule of law, accusations which Hungary's justice minister has swiftly rejected along with Orbán himself who said "if you can’t help, the least you can do is not hinder us".

Most recently, the law prompted EU Commission President Ursula von der Leyen to call on member states to adhere to European values and respect the freedom of the media when adopting emergency measures to combat the spread of coronavirus.

Making use of the pandemic to build a permanent state of emergency is politically dangerous, and morally unacceptable

, warned Donald Tusk, leader of the European People's Party (EPP) in European Parliament, of which Orbán's Fidesz party is also a member. 13 chairs of EPP member parties asked Donald Tusk for the expulsion of Fidesz from EPP. Tusk does not have the power to expel Fidesz himself. That decision rests with the EPP's political assembly, which brings together senior leaders of the party and the group in the Parliament. The next political assembly is planned for June.

Visentini's letter

While welcoming the steps taken by the government to alleviate the effects of the coronavirus on the national economy,

the ETUC deplores the absence of any consultation on the draft laws with the Hungarian Social Partners

, said Visentini.

"While it is clear that the coronavirus brings extraordinary challenges, nonetheless checks and balances and democratic norms must be kept in place."

"It is exactly during this time of crisis when social dialogue is most needed to bring positive contributions and solutions to combat the crisis, since the role of social partners in designing and implementing emergency measures in an efficient way, is essential," he added.

The General Secretary also noted that when comparing the adopted provisions with measures introduced in other EU member states, it is apparent that the Hungarian measures leave workers largely unprotected in the current unprecedented situation, and some industries without equal support.

Immediate and long-term plans need to be balanced and must apply to all sectors of the economy to keep people in employment, including through short-time work and income compensation arrangements

, he stressed.

Therefore, the ETUC calls on the Hungarian government to:

Negotiate with the Social Partners in order to implement the measures in a balanced way.
Reinforce the measures previously taken by the state to support the economy and take further steps in support of workers by adopting public funding schemes to maintain employment, measures to support workers health and safety in particular for those sectors who are working hard to fight the pandemic, like health care workers or those who continue to provide essential services during the crisis like transport and food production & retail workers.
Guarantee labour legislation to keep the balance of power between workers and employers, with a special emphasis on collective interest protection.

"Furthermore, any measures taken to undermine workers’ rights now will have negative effects on the economic recovery once the crisis will be over. Large number of unemployed workers will require longer assistance from the state and will weaken any chance of a quick, strong recovery of the national economy," added Visentini.

The first assessment of the ETUC is that the changes introduced in this law and in the previous measures

WILL BRING HUNGARY INTO BREACH OF ITS OBLIGATIONS TO SECURE THE RIGHTS PROVIDED TO WORKERS UNDER EU DIRECTIVES.

The measures of particular concern are the changes to the Labour Code "to make employment regulations more flexible, in order to facilitate future agreements between employers and employees.” With this move, the provisions of the Labour Code render employment rights vulnerable to being breached in whole or in part.

The ETUC will raise these concerns at the highest level with the President of EU Commission, Council and Parliament, concluded Visentini.

Orbán's response

Bertalan Havasi, the Prime Minister’s press chief, informed state newswire MTI that in his reply PM Orbán wrote that “it is a rare privilege for a Hungarian prime minister to receive a letter from you. The economic ailments caused by the present coronavirus epidemic doubtless warrant your special gesture. I am happy to observe that you are keeping track of the efforts made by the Hungarian government and the Hungarian people in the interest of conquering the coronavirus.”

The PM said it is encouraging that even in a difficult situation such as the present one we can rely on the attention of trade unions. He reassured the General Secretary that “we are convinced that our intentions and goals fully coincide also at this time”.Orbán reminded Visentini that in the past ten years, Hungary – perhaps as the only country in Europe – has managed to build a workfare economy.

As I’m sure you are aware, we brought unemployment to its knees which was well above ten per cent during the period before we took office.

"This means that during its present crisis management measures the Hungarian government can confidently rely on the experiences of the policies adopted in the wake of the 2009 crisis,” he continued.The Prime Minister observed that also in the past ten years they have been open to sharing Hungary’s experiences with anyone showing interest.

He pointed out that the goal of preserving jobs and creating new ones is at the centre of the government’s crisis management programme.

I can reassure you that we will create as many jobs as wiped out by the coronavirus.

This was practically Orbán's only remark that may be considered as some kind of answer to the concerns of the ETUC. The rest are pleasantries at best or, if we wanted to be a bit more critical, cynical retorts.

“On behalf of the Hungarian people, I wish to thank you for your sympathy, solidarity and encouragement,” Orbán wrote concluding his letter to the General Secretary of the European Trade Union Confederation.