Press conference after Hungary gov't meeting on missile hit in Poland and more
Rogue rocket in Poland
There was a missile hit on a Polish village late that rattled nerves globally late on Tuesday. Since then Warsaw's initial assessment has been that the blast killing two people was an 'unfortunate accident'. Consequently, we shouldn't envisage the Russia-Ukraine war escalating into a nuclear holocaust just yet.
Here's the latest on the Polish incident:
Hungary ensured Poland of its support, said Gulyás, stating nothing new or important about the deadly incident in the southeast Polish village of Przewodów.
Tourism Action Plan in the works
Tourism is an important source of income for Hungary, which is why the cabinet decided to devise a tourism action plan to keep hotels and restaurants open in the countryside and in Budapest. In the first 10 months of the year, the number of overnight stays increased by 33%, with 26% of the overnight stays in Budapest and 74% in the countryside. Hospitality revenue increased by 45%, said Gulyás.
However, it seems that with the heating season approaching, the tourism industry will also find itself in a difficult situation and many businesses have turned to the government for help. Consequently, the government has decided on the following steps:
- The Széchenyi Recreation Card (SZÉP card) tabs are being abolished and the cards can be used for accommodation, catering and other purposes without internal restrictions.
- The payment of the tourism development contribution will be suspended between 1 October 2022 and 31 March 2023, most of which has not yet been paid. Gulyás said this is the biggest help, leaving 4% of net turnover in the sector.
- At the request of tourism operators, a working time framework will be introduced: tourism will also be able to benefit from a 24-month working time framework.
Gulyás stressed that there will be no funding part of the tourism action plan:
No one will receive anything as part of the tourism action plan, but will not have to pay 4% of net sales.
The general use of the SZÉP card will also help tourism, he added.
Friendship oil pipeline
If pipeline transport is not available, oil can be imported via Croatia by tanker.
The oil pipeline from the port to Hungary is only 80% of its current capacity, which would be a bottleneck, but it would still allow for a longer supply, Gulyás said in response to a question.
Oil supply to parts of Eastern and Central Europe via a section of the Druzhba pipeline was temporarily suspended on Tuesday, according to oil pipeline operators in Hungary and Slovakia.
The extent of the disruption was not immediately clear, and came concurrent with an explosion in a village in eastern Poland near the Ukrainian border that spooked NATO countries.
Hungary's Mol said its Ukrainian partner told the company that a Russian rocket hit a power station close to the Belarus border that provides electricity for a pump station, and this led to the stoppage. Slovakia's Transpetrol confirmed the suspension as well, citing "technical reasons on the Ukrainian side" but did not specify a rocket strike, Reuters reported.
The Druzhba pipeline network originates in Russia and splits in Belarus into Ukraine, where it splits again, supplying several countries in Eastern and Central Europe that depend on that oil, including refineries in landlocked Hungary, Slovakia and the Czech Republic.
Earlier today, Hungary's Minister of Foreign Affairs and Trade Péter Szijjártó informed in a video posted on his Facebook page that due to the Russian missile attacks on Ukraine, a significant part of the Ukrainian energy infrastructure has been damaged, and the oil supply through the Druhzba (Friendship) oil pipeline, which also supplies oil to Hungary from Russia via Ukraine, has been temporarily interrupted.
According to current information, the pipeline itself was not damaged, but a transformer station, part of the infrastructure that operates the pipeline, was. The minister said that repairing this is easier than if the pipeline itself had been hit, so it is likely that transport on the pipeline may be able to resume in the near future.
Hungary has several weeks, several months of oil reserves, so Hungary's energy supply is not in danger,
he stated.
Sweden, Finland NATO accession still pending Hungary, Turkey approval
We will ratify the accession of Sweden and Finland to NATO before Turkey does,
Gulyás replied to a question.
It is unclear how he knows when Ankara will give its approval, though.
A week ago to the day, he said Parliament would discuss the ratification of Sweden and Finland's accession to NATO during its autumn session after a series of EU-related bills have been passed.
He told reporters that the two countries are Hungary's allies and that "they can count on us," Reuters reported. Hungary and Turkey are the only members of the alliance who have not cleared the accession.
PM Viktor Orbán's government had submitted the relevant bills in mid-July, but parliament, in which his ruling Fidesz party has a legislative majority, has still not tabled the two bills for debate and approval.
"Our aim is that parliament should ratify their application before the end of this year ... we have always said we supported the ratification," Gulyás said, in reply to a question.
Russia responsible
Only Russia is responsible for the war, Gulyás said in response to a question on responsibility.
As for the specific missile strike in Poland, it would not have happened without war. Let's wait for the analysis to be completed, but if a Ukrainian missile caused the deaths of the two people, it is difficult to speak of direct Russian responsibility, but there is indirect Russian responsibility, he added.
Extension of the PIT exemption
Gulyás said a decision on a previously promised extension of the personal income tax exemption for women aged 25-30 could be taken in December. There are well-defined plans for this, he noted, adding that energy price estimates next month would determine what additional expenditures the budget could cope with.
According to earlier news, the government is considering that if a woman over the age of 25 - when the PIT exemption for young couples expires - agrees to have a child until the age of 30, the exemption will be extended until the age of 30.
Fuel price cap
When asked how long the price of gasoline and 95-octane petrol will remain capped (for those eligible) at HUF 480, Gulyás replied that phasing out the measure would be difficult and the cap remains in place until energy prices moderate or "until we have a better idea".
EU funds - Any sign of an agreement?
The government has done everything it can in recent months to secure an EU agreement, and there is a good chance that this will happen within weeks. This will be certain once the ink is dry on the paper, but there is a good chance, said Gulyás.
More to follow!
