The bureaucrats, speculators, and foreign press are once again lining up against the Hungarian government.
Let’s start with the forint, which today breached the 300 mark against the euro. The forint’s weakness is the result of several factors: the appointment of György Matolcsy as chairman of the Hungarian National Bank; rumors about the possible exchange of some of the bank’s foreign reserves for rubles; and, the latest, word that the government intends “to assist” Hungarians with their foreign currency loans. The government would convert these loans into ones denominated in forints and would also lighten their burden by paying a certain percentage of their debt. The Hungarian government would use some of the reserves of the Hungarian National Bank for this purpose.
There are political pressures on the Orbán government as well. In the March 5 issue of the Frankfurter Allgemeine Zeitung Michael Link, undersecretary in the German Foreign Ministry, wrote a piece that appeared on the op/ed page of the newspaper and available on the website of the German Foreign Ministry or in Hungarian on the Galamus site. The title itself is telling: “Hungary must remain a country of the law.” In the body of the article Link reasserts that “we cannot be indifferent” to what is happening in Hungary. Earlier the European Commission managed to convince the Hungarian government to change some passages in the Constitution. The Hungarian Constitutional Court also found some of the laws passed by the Hungarian Parliament to be unconstitutional. Now, however, there are new attempts to smuggle back all the formerly objectionable passages into the body of the constitution. These “new initiatives limit the freedom of expression for the alleged protection of the dignity of the Hungarian nation.”
As a friend of Hungary, Link would like Hungary “to demonstrate that the country has an effective separation of power between the legislative and the judicial” branches. As it stands, the Constitutional Court hands down judgments that the government ignores. “We need a vibrant parliament with a perceptible opposition and a confident Constitutional Court.” Link also wishes that “the two-thirds majority the Government relies on is used prudently. A two-thirds majority is not a free ride…. The European values that we share in the world, we must also cherish at home.” For good measure Link mentioned that Foreign Minister Guido Westerwelle shares these concerns. Common European values “must apply to all EU members, both new and old.” As with each member state Hungary remains “master of its cultural identity,” but there have to be shared values. Among them the rule of law is the most central. “It must be able to develop without any ifs, and, or buts.”
The Hungarian answer that came from Gergely Gulyás, a young Fidesz MP and a member of the parliamentary committee on constitutional matters, was that “it is a misunderstanding” that the Hungarian government wants to limit the competence of the Constitutional Court. To the contrary, its latest amendments were made at the request of the Court itself. What else is new? We know from earlier government statements that everybody misunderstands the intentions of the Hungarian government and Viktor Orbán.
On the very same day the Financial Times came out with an editorial on “Orbán’s threat to democratic values.” It is about the same amendments Michael Link was talking about. The article reminds people that last year Viktor Orbán backed down on aspects of a new constitution that would have posed a threat to judicial, religious, and press freedoms. But this week the Hungarian parliament threatened to revive “curbs that violate European values in an amendment to the constitution. If this goes ahead, the response from Brussels should be rapid and robust.” According to the editorial, Brussels should “set out in precise detail where the amendment violates Hungary’s membership of the EU. But once that is established, it should warn Mr Orbán that it is prepared to use the most powerful weapons in its armoury to defend European values.” The article recalls that the EU was ill equipped thirteen years ago to handle the situation when the Austrian government included a far-right party as a coalition partner. But the editorial stresses that “this time there is greater political consensus that Mr Orbán’s attacks on democratic norms cannot be tolerated.” The FT editors suggest a withdrawal of Hungary’s voting rights and add that “financial sanctions too should be considered…. Faced with an economy in deep recession, and a decline in foreign investment, Mr. Orbán needs the money. Brussels should not hesitate to threaten a withdrawal of structural subsidies, for example, if Mr. Orbán does not call on his party to drop any amendments that violate EU membership. If the Hungarian prime minister insists on flouting European values, he cannot expect Europe’s support.”
And if that weren’t enough, today the secretary general of the Council of Europe called on the Hungarian government to postpone the vote on the latest amendment to the constitution. Thorbjørn Jagland wrote: “I have misgivings concerning the amendments that may not be compatible with the rule of law.” He further argued that with the incorporation of these amendments the government with its two-thirds majority is forcing its will on the Constitutional Court and is thereby endangering the system of checks and balances. He suggests a postponement of the vote in order for the Venice Commission to study the matter.