HATC SAMPLE EDITION:
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9th May, 2013
Fidesz alleges business interests behind EU concerns
The EU’s expressed concerns about Hungary’s constitutional system have nothing to do with democracy, but are a response to the cuts in utility fees, Fidesz caucus leader Antal Rogan told reporters yesterday.
The EU is on the side of banks and large companies, he said, as he asked whose interests Socialist Party president Attila Mesterhazy really represents.
Asserting that political attacks have been launched against Hungary, Rogan and deputy caucus leader Gergely Gulyas said the draft report on the rule of law in Hungary submitted by Portuguese MEP Rui Tavares on Tuesday is the most obvious proof of double standards applied against Hungary, is teeming with factual errors and contravenes EU law.
The document suggests that Hungary may have failed to honour the values laid down in the EU Treaty.
Hungarian EU commissioner Laszlo Andor told Nepszabadsag that criticisms of the government are not stoked from Budapest, nor by the left wing, but are justified by constitutional measures thought to be worrisome.
No matter how hard Fidesz tries to claim otherwise, he said, the EU does not apply double standards against Hungary.
European Parliament Speaker Martin Schulz said he is unaware of any “global left-wing conspiracy against Hungary,” nor has Viktor Orban spoken of one in their meetings.
Orban is a talented politician who has a special knack for avoiding questions inconvenient to him by blowing things out of proportion around him, Schulz observed.
But, he continued, that will not save him from having to answer concrete questions on Hungary from the European Commission and other bodies sooner or later.
Schulz concluded: “I acknowledge Orban's abilities as a politician and party leader, but he ought to act like a statesman from time to time”. (N pp.1&6; MH pp.1&3; Nsz p.3; KR; TV)
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9th May, 2013
Mesterhazy against EU sanctions
Hungary’s Socialist MEPs will oppose any EU punishment of Hungary, because it is the Orban cabinet, rather than the country, that has moved away from EU values, party president Attila Mesterhazy told reporters in Brussels on Wednesday.
In addition, they would not vote for the Tavares report on Hungary in its present form, he said.
Mesterhazy said the report is about the Orban regime, which the Socialists will “smash to smithereens” after the change of government and restore the rule of law.
He suggested that the prime minister arrange a political day of debate in Parliament on the Tavares report and related questions, possibly in June.
The executive committee of the party held a two-day meeting in Brussels for the first time. (N pp.1&6; Nsz pp.1&2; inforadio.hu; index.hu; mti.hu; KR)
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9th May, 2013
Lazar says Philip Morris is behind tobacco retail outrage
Prime Minister’s Office chief Janos Lazar has accused Philip Morris of being behind the outrage over the award of tobacco retail licences.
“First it lobbied in Brussels, then it tried to halt the passage of the law, and finally it organised a political campaign to discredit the government,” Lazar claims in an interview with the weekly Heti Valasz, out today.
He said not even the opposition media has been able to link Fidesz to 90% of the winning bidders.
Asserting that the change in tobacco retail law has done serious harm to Philip Morris, Lazar said “They sent us a clear message that they will do their utmost to prevent the introduction of the new system as of July 1.”
Tobacco retail monopoly Nemzeti Dohanykereskedelmi refused to grant Socialist politician Csaba Toth access to documents on the award of licences. Toth said he is entitled to such information as an MP.
Data protection authority Attila Peterfalvi confirmed to Inforadio on Wednesday that data from the tenders will only be made public after the related contracts have been signed.
Meanwhile parliament's budget committee proposed a new change to the conditions under which tobacco retailers will operate, by expanding the range of products available at such outlets.
The proposal states that coffee, alcoholic beverages, energy drinks, soft drinks, newspapers and ice cream be available at tobacconists from July 1.
Socialist MP Zoltan Gogos said his party will file reports on abuse of power at all county prosecutor's offices in connection with the tobacconists tender. (hetivalasz.hu; Nsz pp.1,12&16; MH p.3; VG p.2; inforadio.hu; KR; TV)
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9th May, 2013
Ader sends back information bill
President Janos Ader has sent back to Parliament the amendment to the law on information freedom which restricts access to public data of interest.
Parliament passed the amendment last week within 48 hours of its release after the cabinet refused to reveal the criteria used in assessing bids for tobacconists’ licences. (hvg.hu)
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9th May, 2013
Few retired judges return to work
Only about 25% of the older judges forced to retire last year have chosen to return to work since the law that rendered them idle was revoked, the National Judicial Office has said.
The remaining 173 have opted instead to accept a lump sum compensation payment.
The Constitutional Court last July annulled the law which had lowered the judges’ age of retirement from 70 years to 62, and dismissed all judges older than 62 with immediate effect.
The European Court also ruled that the law was unfairly discriminatory. (mti.hu; index.hu)
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9th May, 2013
Alternative election monitor formed
Emilia Rytko, former head of the National Election Office, has agreed to be part of an alternative election commission initiated by left-wing opposition parties.
She will be joined by former National Election Commission president Peter Szigeti, former Commission member Gyorgy Szoboszlai, former Budapest prosecutor general Endre Bocz and sociologist of law Zoltan Fleck,
The five accepted the request from the Socialist Party, Together 2014-Dialogue for Hungary and the Democratic Coalition.
In response, Fidesz said illegitimate teams arbitrarily appointed by the “mafia left-wing” endanger the purity of the elections and Hungarian democracy. (N p.2; MH p.3; Nsz p.2; mti.hu; mno.hu; KR)
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9th May, 2013
MPs hear cleaner Laborc tapes
Random checks indicate that the sound recording of the 2008 meetings between crime figure Tamas Portik and secret services chief at the time Sandor Laborc is consistent with the transcripts, Socialist MP Zsolt Molnar said yesterday.
Members of the national security committee, chaired by Molnar, heard parts of the technically cleaned recordings, as the original version that they heard on April 29 was of poor quality.
Molnar said the party's experts will listen to the full four-hour recording and make note of any discrepancies.
According to the documents Portik and Laborc met twice in 2008 in the company of two other people. According to the recordings Laborc wanted to obtain information from Portik that would incriminate public figures.
Fidesz committee member Zsolt Csampa said the Socialists have a moral and political duty to admit that the head of the secret services consulted with the underworld on operations aimed at discrediting then opposition politicians and those working in the judiciary.
The sub-committee formed to investigate the matter will primarily concentrate on whether the meetings had any consequences, and if so, what, its chairman Lajos Mile told Nepszabadsag.
The LMP MP said they will be keen to hear whether Portik did anything like he promised to improve the electoral chances of the left wing or to discredit politicians and decision-makers. (N p.5; MH pp.1&3; inforadio.hu; mti.hu; mno.hu; TV)
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9th May, 2013
Together launches ad campaign
The Together 2014–Dialogue for Hungary alliance has supplemented its tour of the provinces with a nationwide poster campaign, urging the need for a “change of regime”.
The alliance mainly seeks to draw attention to unemployment, corruption, and the difficulties caused by the crisis and the flat rate income tax.
The campaign is funded from donations collected recently. (N p.6)
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9th May, 2013
Fidesz may scrap by-elections
Fidesz plans to abolish parliamentary by-elections between July 1 of this year and the 2014 general election, news website Index has reported.
Caucus leader Antal Rogan confirmed that the party is examining the possibility of such an interim regulation, as any by-election after July could not be held before November.
Moreover, as the constituency boundaries have been changed, he said, voting would take place at a cost of Ft 20 million in constituencies that will no longer exist next year.
As no parliamentary seats are vacant, no by-elections are scheduled. (N p.2; index.hu)
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9th May, 2013
Magyar Hirlap fined over Bayer item
The Media Council has imposed a Ft 250,000 fine on Magyar Hirlap because of an anti-Roma editorial in which staff writer Zsolt Bayer referred to Roma as “animals”.
The council said the January 5 article violates the ban on hate speech.
The Media Council also ordered the newspaper to publish its ruling.
Bayer wrote, in part, “a considerable part of Gypsies are not fit for co-existence . . . This section of Gypsies are animals and behave like animals.”
This is the first time that the Media Council has proceeded against a print or online publication, Magyar Hirlap writes. (index.hu; MH p.14; N p.5; Nsz p.2)
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9th May, 2013
District mayor takes up Orban's idea
Sixth District mayor Zsofia Hassay did not sit idle after Prime Minister Viktor Orban urged Budapest mayor Istvan Tarlos last week to submit a bill to take back into public ownership a prominent building on Andrassy ut, Nepszabadsag writes.
In a video posted on the internet last week, Orban said “I would like to get it back” when Tarlos told him that the former Ballet Institute across from the Opera House is owned by Portuguese investors.
He encouraged Tarlos to submit a proposal, saying that he would then have a law passed to that effect.
Hassay’s proposal is that investors who buy properties on Unesco World Heritage sites – such as Andrassy ut – be heavily fined if they do not develop or renovate the building within a specified time.
In the next phase the state could re-purchase or re-take the property, she told Nepszabadsag on Wednesday.
A bill on all World Heritage sites could be submitted to Parliament this year, Hassay added. (N pp.1&4)
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9th May, 2013
Orban to defend cabinet in EP again
Prime Minister Viktor Orban will return to European Parliament in July when a report on Hungary is on the agenda, according to Nepszabadsag.
Fidesz sources said that until then the cabinet will respond to the “concerted attack” by resorting to diplomatic instruments.
Party sources claim that EU institutions argue that the rule of law is in danger in Hungary primarily because left-wing-liberals are in the majority in the EU.
Another source said the EU finance ministers will wait until the autumn to end excess deficit proceedings against Hungary. (nol.hu)
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9th May, 2013
Kover on Ankara visit
Turkey's entry to the EU would be to Hungary’s benefit, Speaker Laszlo Kover said in Ankara on Wednesday.
Bilateral talks have reached a new, intensive phase, Kover said after meeting Speaker Cemil Cicek and Prime Minister Recep Tayyip Erdogan. He will be received by President Abdullah Gul on Friday. (N p.3; MH p.5; mti.hu; klubradio.hu)
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9th May, 2013
Nemeth visits Bosnian Serb leaders
Foreign Ministry state secretary Zsolt Nemeth had talks with Bosnian Serb President Milorad Dodik, Prime Minister Zeljka Cvijanovic and Mladen Bosic, head of the opposition Serb Democratic Party, during a visit to Banja Luka on Wednesday.
The talks covered bilateral issues as well as the state of affairs in the West Balkan region and the Euroatlantic integration of Bosnia-Hercegovina. (MH p.5)
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9th May, 2013
Szijjarto builds closer ties with Kuwait
Economic relations state secretary Peter Szijjarto hosted a two-day meeting of the Hungarian-Kuwaiti economic committee in Budapest on Tuesday and Wednesday.
Speaking after talks with Kuwaiti Finance Ministry state secretary Khalifa Musaad Hamada, Szijjarto told reporters that Hungary should forge closer ties with Kuwait in the oil industry, innovation, agricultural and air affairs co-operation. (hirado.hu; MH p.10)
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9th May, 2013
Youth unemployment climbing
Unemployment among those aged 15-24 stands at 30% in Hungary, according to figures from the International Labour Office.
More than 92,000 of that age group were unemployed in the first quarter in Hungary.
The UN agency forecasts that the jobless rate among those aged 15-24 in the EU will remain stuck at 17% for the next two years, and even higher in the southern countries.
Global unemployment among those in the 15-24 age group is forecast to rise to 73.4 million in 2013, or 12.6%. (NG pp.1&6; VG p.6)
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9th May, 2013
Eximbank plans $500mn bond issue
State-owned export financier Eximbank plans a $500 million bond issue this year as part of the €2 billion bond programme announced last year, CEO Roland Natran told the Wall Street Journal.
The bond issue, in either dollars or euros, will be co-ordinated with that by state debt manager AKK and state development bank MFB, he said.
Eximbank issued $500 million of five-year bonds in December, receiving $2.2 billion worth of bids, at yields lower than projected, Natran recalled.
The €100 million line of credit from the Chinese export-import bank could be extended, Natran said.
He told a conference in Budapest that Eximbank's loan guarantee facility was pumped up from Ft 80 billion to Ft 350 billion this year, creating a strong base for greater export financing for Hungarian companies.
Eximbank has signed a €400 million refinancing loan agreement with 13 banks and their number is expected to increase.
The Development Ministry projects that investments will begin to rise this year, but without lending there is no growth, Natran observed. (NG p.2)
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9th May, 2013
Easter boosts March hotel figures
The number of guest nights by foreign tourists rose 20.5% to 781,000 in March, while the number of visitors to Hungary went up 17%, the Central Statistics Office reported.
More tourists came from the United Kingdom, the Czech Republic and Russia.
There was a 1.9% rise in the number of domestic tourists, who spent 5.2% more guest nights, 630,000.
The Easter holidays fell in March this year, boosting the figures.
In the first quarter, guest nights at commercial accommodation were up 6.7% and the number of guests rose 7.7%.
The average price of a hotel room in the first quarter was Ft 13,907, while the average revenue per room was Ft 6,193. (NG p.3; VG pp.1&6; Nsz p.4)
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9th May, 2013
Massive VAT fraud on Slovak border
Stepped up checks at the Slovak border by customs and tax officials in the past three months to crack down on VAT fraud have yielded stunning results, Napi Gazdasag writes.
The number of trucks entering the country from Slovakia fell by 1,600 per day, a 25% drop, after authorities began an all-out monitoring of freight documents.
Companies involved in white-collar crime have begun diverting their shipments to other border crossings or are shipping smaller consignments since the raids began.
As a result, as much as Ft 1 trillion worth of goods will not enter Hungary illegally this year, in a rough estimate by Napi Gazdasag.
Criminals have long abused EU law, which stipulates that VAT is to be paid in the country where the goods are sold, not in transit countries. In these cases, Hungary was named as a transit country in the shipping documents, but this is where the products were actually sold.
The buyers never paid the VAT, after selling them to other domestic companies, also part of the scam, which reclaimed the VAT.
Goods can circulate in this way for several rounds, creating “carousel tax frauds” that are difficult for tax authorities to uncover, Napi Gazdasag writes.
They often end up being sold by large retail chains, although paperwork indicates that the goods have left Hungary. (NG pp.1,4&5)
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9th May, 2013
Vodafone takes regulator to court
Vodafone has sued media and telecoms authority NMHH, after the regulator said it will not automatically renew the frequency licenses of incumbent mobile operators.
The move comes 30 days after the NMHH outlined its plans for mobile frequency utilisations at a meeting with the Hungarian heads of Vodafone, Magyar Telekom and Telenor.
Vodafone is hoping to reach an out-of court settlement with the authority, Nepszabadsag writes.
The company argues that the licences of Magyar Telekom and Telenor have already been extended once, in 2007, so the principle of equal treatment would justify an automatic extension for Vodafone.
Vodafone's license expires in October 2014. (N p.10; NG pp.1&3; VG p.6; Nsz p.5)
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9th May, 2013
MTelekom maintains 2013 objectives
Magyar Telekom has revised its 2013 revenue projections from a contraction of 3% to no change from 2012, deputy CFO Janos Szabo announced yesterday, after the company released its first-quarter results.
Despite a 24.3% decline in the quarter, Magyar Telekom maintains its forecast for a 4-7% drop in ebitda this year.
The company does not plan to withdraw from the electricity distribution market, but aims to gain better positions on the purchasing side and is striving to increase its non-retail customer base, Szabo noted.
The energy service unit, despite the 10% cut in utility prices, has been a major contributor to revenue growth.
Asked about the dividend policy, Szabo said the company's stable operations provide a solid base for that. What is unforeseeable, he added, are changes in the economic environment, household demand and the costs associated with frequency tenders.
Magyar Telekom shares fell 5% on Wednesday, at one point reaching a record low of Ft 343. (NG pp.1,9&11; VG pp.1&2; Nsz p.5; N p.10; mti.hu)
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9th May, 2013
Richter Q1 profits beat expectations
Richter’s first-quarter profits rose 13.7% year-on-year to Ft 19.1 billion, exceeding analysts expectations of Ft 16.8 billion, the drug maker announced on the stock exchange website.
Revenue was up 4.7% in both forint and euro terms, to Ft 85.8 billion.
However, operating profit saw a 1.8% decline, to Ft 17.7 billion, due to higher marketing and R&D costs.
Domestic sales came to Ft 9.2 billion, a 5% rise, boosted by new products.
International sales saw 4.7% growth, helped by higher sales to China and Ukraine, reaching €258.8 million.
Sales in Russia slumped 7.2% to Ft 24.2 billion, as a distribution agreement expired. (bse.hu)
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9th May, 2013
GVH suspicious of drug wholesalers
The Competition Office (GVH) has started proceedings against three pharmaceutical wholesalers and two consultant companies after raiding their offices, it was announced yesterday.
The regulator suspects that the companies have impeded competition since 2011, by co-ordinating their actions in public procurement tenders for the supply of infusion solutions.
The companies under investigation are Euromedic-Pharma, Hungaropharma and Teva, as well as consultants PharmAudit and Medicon. (NG p.3; VG p.6; Nsz p.4)
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9th May, 2013
Magyar Posta may sell cigarettes
Postal company Magyar Posta could be assigned to operate mobile tobacco retail outlets in towns and villages where no concession licences were awarded, Nepszabadsag reports, citing an unnamed prominent Fidesz politician.
As the state took over the wholesale trade of tobacco, it also took on an obligation to secure the supply of these products.
Magyar Posta could utilise mobile postal services in many rural locations for this purpose.
Magyar Posta did not comment but promised to reply on Thursday. (N p.9; MH p.11)
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9th May, 2013
MNB talks continue on lending scheme
MNB governor Gyorgy Matolcsy met with the heads of small and medium-sized banks on Wednesday to discuss the central bank’s funding for growth scheme, the MNB announced.
The MNB consulted representatives of larger banks and savings co-operatives earlier in the week.
The central bank is making Ft 250 billion of financing available to be lent to SMEs, and will inform banks by May 28 on how it plans to allocate the resources among them.
The loan scheme, with interest rates capped at 2.5% for companies, will be available from June 1 until the end of August.
The monetary council will assess the programme in September. (profitline.hu; Nsz p.5)
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9th May, 2013
Jost expands in Veszprem
Truck parts maker Jost Hungaria has completed a Ft 900 million investment in new equipment at its plant in Veszprem, enhancing efficiency and environmentally friendly production, the company announced.
The project, which received Ft 210 million from the New Szechenyi Plan, will add 40 jobs to the current 200.
Jost Hungaria generated Ft 8.5 billion in revenues in 2010, when it applied for the grant. (NG p.16; VG p.2)
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9th May, 2013
Media authority fines Digi
The communication authority NMHH has fined cable television provider Digi Ft 5 million for removing channels from its list without prior announcements.
The company sparked outrage among subscribers in December when it removed the Discovery channel from its package overnight.
Digi also breached its own terms and conditions on the obligation to notify the media authority and subscribers 30 days prior to such decisions. (NG p.10)
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9th May, 2013
Graphisoft Park profits fall
Graphisoft Park profits fell to €349,000 in the first quarter from €506,000 one year earlier, in line with management projections, the property company announced.
Revenue fell 4% year-on-year to €2 million, as the occupancy rate of its office buildings dropped from 88% to 84% with the departure of its major tenant, AMRI Hungary.
The management of Graphisoft's real estate spin-off maintains its 2013 profit projection of €1.7 million, compared with €1.8 million in 2012. (NG p.10; hirado.hu)
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9th May, 2013
Polt reports on rising crime
The number of registered crimes rose by over 20,000 in 2012 from 2011, while the number of registered criminals shrank by 12,000 to 100,000, the lowest figure in ten years, Prosecutor General Peter Polt said in a report to Parliament on Wednesday.
There was a growing trend of crimes against property, followed by crimes against public safety, individuals and traffic crimes.
Courts meted out 22 life imprisonment terms in 22 cases.
Polt said prosecuting authorities completed over 12,000 proceedings last year, 54% more than in 2011. (MH p.2; N p.2)
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9th May, 2013
Preparations proceed on unified emergency call system
A unified emergency call system, ESR-112, will be operative by the end of the year, the Development Ministry announced yesterday.
The government initially planned to put the system into operation in March, but suffered delays due to procurement tenders.
By introducing a new universal emergency number 112, replacing the current 104, 105 and 107 numbers for ambulances, fire-fighters and police, authorities hope to reduce response time to 15 minutes.
All calls will be received at control centres in Miskolc and Szombathely, where several hundred operators will be employed.
Hungary received Ft 6 billion from the EU for the Ft 7.4 billion undertaking.
A pilot project is operating in Vas, Heves, Komarom and Borsod counties. (index.hu; mti.hu; MH p.15)
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9th May, 2013
PM’s assistance sought to fight mosquito invasion
Independent mayor Robert Molnar of Kubekhaza, Csongrad county, has asked Prime Minister Viktor Orban for urgent help to combat a mosquito invasion in small villages near Szeged.
Molnar told state news agency MTI on Wednesday that the mosquito infestation may have a serious impact on tourism in the long run unless the situation is addressed, as no one can stay outdoors for long. Small towns do not have sufficient resources for the task, he said.
Appeals to the local MP, the government commissioner, and the Interior Ministry have proved futile. (inforadio.hu; mti.hu; MH p.15; Nsz pp.1&11)
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