Hungarian PM Orbán hints at new HUF 80 billion package
Prime Minister was asked about several important topics, including his weekend trip to Washington, the agreements reached there, the pardon issue that cost the President and Justice Minister of Hungary their jobs, next year's elections, Péter Magyar, the MNB scandal and the situation in Budapest.
"You haven't been on ATV for fifteen years," ATV anchor Egon Rónai pointed out at the beginning of the conversation. Orbán dismissed this with the phrase "But I've been elsewhere," and then they turned to the trip to the US.
Orbán said that they chose Wizz Air because there were no state-owned aircraft available that could have made the trip. When asked about the comfort of the Wizz Air flight, Orbán replied, "Wizz Air is a serious company,"
According to the Prime Minister, exemption from US sanctions was not guaranteed prior to the trip, although it was evident that the US President would be amenable to reaching an agreement.
If you do this, Mr President, you will destroy Hungary,
Orbán recalled his argument during the negotiations on exemption from sanctions.
Rónai then recalled that there had been some confusion regarding the duration of the sanctions exemption. The Hungarian government initially communicated that Hungary had been granted an indefinite exemption, and Orbán also spoke of an "unlimited" exemption. However, in response to a question from Telex, a White House official stated that Donald Trump had granted Hungary a one-year exemption from US sanctions on the purchase of Russian oil and gas.
Orbán did not say any specific number and "clarified" the matter by saying:
The president said: 'I understand, I agree, and we shook hands on it.' As long as he is president there and I am prime minister here, that is how it will be. If conditions change, we will have to renegotiate.
When confronted with the fact that the Hungarian state could spend several thousand billion forints in the United States in the coming years based on the agreement, Orbán responded that he had not offered anything, nor wanted to make a deal. He added that Trump had not asked for anything in return, attributing this trust to his support and friendship. When asked about the details of the agreement, the Prime Minister said that it did not matter what the US State Department wrote; it was the President's word that counted.
When asked whether Orbán would like to see this system introduced in Hungary, he gave a surprising answer. According to him, the question of introducing a presidential system has been raised several times within his government.
We learned from Orbán that, in 2010, the question of whether to transform the Hungarian power system, which was controlled by a two-thirds majority, arose. Orbán held lengthy discussions about this with the 'old guard', including [Foreign Minister] János Martonyi. Several types of presidential system were discussed, as well as Horthy's gubernatorial system. Ultimately, however, they concluded that a parliamentary system would be best for Hungary.
Orbán said that this conversation was held after every election, but it was shorter and always quickly came to the same conclusion.
It's always on the table. I suggest that Hungarians never consider these issues to be definitively closed. The question of what is best for Hungarians here and now must always be asked.
Rónai then asked the prime minister about the Hungarian government's policy towards Russia, which, in his opinion, appeared to be changing in light of the agreements with the United States and France. Orbán responded with a firm "no" and, using a nautical metaphor, explained that he was sitting at the top of the mast so that he could see what would happen in three or 15 years' time.
He categorically stated that Hungary had no exposure to Russia.
According to information from the US State Department, Hungary will purchase power plants, power plant fuel, liquefied natural gas (LNG) and military equipment from the US, with the total value not exceeding HUF 7 trillion. However, according to Viktor Orbán, this does not include American investments coming to Hungary.
Regarding the purchase of LNG, the Prime Minister announced that Hungary will purchase 400 million cubic metres annually over a period of five years. He also said that we have purchased technology for storing spent nuclear fuel and that we will purchase [nuclear] fuel from the US.
Regarding the much-debated 'financial shield', the Prime Minister said:
We don't have to draw on it. We can draw on it whenever we want and in whatever form we want. There are several international forms available. Examples include swap lines and flexible credit lines.
According to Viktor Orbán, he and Trump agreed that, should Hungary encounter financial difficulties, it could draw on and use one of four or five internationally recognised instruments. "Of course, I will have to negotiate with him again beforehand," he added.
There is no limit, but it doesn't take much imagination to work it out. The amount we need for stability — 10–20 billion dollars or euros — is not significant from America's perspective.
Regarding the peace summit in Budapest, the Prime Minister confirmed that, although it has been delayed, a Russian-American summit is still on the agenda.
In other words, it has not been ruled out.
According to Orbán, negotiations have stalled due to territorial issues.
According to theFinancial Times, the United States cancelled the planned Trump-Putin summit in Budapest afterRussiastated in a letter that it would not compromise on its demands regarding Ukraine. The decision came after a tense phone call between the two sides.Russia's letter, sent days after the leaders had agreed to meet in Budapest, insisted that Ukraine must cede additional territories as a condition for a ceasefire, drastically reduce its defence capabilities, and guarantee it would never join NATO. Following a call betweenRussian Foreign Minister Sergei Lavrov and US Secretary of State Marco Rubio, whereRussia's unwillingness to compromise became clear, Trump cancelled the meeting. On 23 October, Trump confirmed cancelling the summit, saying they couldn't reach the necessary agreement, though he suggested it might take place in the future.
Regarding the budget deficit, Viktor Orbán said that the 3.7% of GDP target had been abandoned because certain unannounced measures,
such as new forms of support for small and medium-sized enterprises,
were at risk. The Prime Minister said he will hold talks with the Hungarian Chamber of Commerce and Industry (HCCI or MKIK) next week regarding a HUF 70–80 billion tax reduction package for small businesses. The reduction in interest rates on the Szécsényi Card and the 1+1 programme, as part of the Demján Sándor Programme, will also contribute to the larger deficit.
Regarding food inflation, Viktor Orbán said that eliminating price caps would depend on whether it would be possible to do so.
Even with tools to manage it, if inflation remains high in Europe or the Western world, it may be necessary to live with high inflation for a longer period of time.
He was rather reticent about the MNB scandal:
I don't have a clear view on this yet.
Later he added:
Was there any squandering? Was there any theft? What happened to the money? These questions are currently being investigated. It doesn't look good. I'm not seeing what I want to see. I can see there are problems, but I'll wait for the investigation to be completed.
When asked why he did not want to hold a public debate with Péter Magyar, Orbán replied that the Tisza Party was a project developed and financed by Brussels. He added that he did not want to argue with Brussels or any media outlet funded from abroad.
Orbán was also confronted with the Central Statistical Office's (KSH) recently revised data on poverty. Rónai said that, according to the latest figures, one in five Hungarian children lives in extreme poverty. Viktor Orbán responded: "We are on the right track when it comes to poverty..." He then continued, "I am happy to prepare, and we can come back to this next time."
Cover photo: EU
