José Manual Barroso

Russia, Hungary, and the European Union: Paks documents released

It’s time to make sense of all the contradictory pieces of information that have reached the public in the last couple of days concerning the European Union’s attitude toward the Russian-Hungarian agreement on the Paks II nuclear power plant. The central question was whether the Orbán government notified Brussels, as it was obliged to, about the details of the agreement.

Energiaklub, a non-profit organization that deals with questions of energy and the environment, wrote a letter to the European Commission’s Directorate-General for Energy on February 17 asking for “access to the documentation related to the notification, under the Euratom Treaty, of the PAKS nuclear power in Hungary.” The answer was: “This investment project has not yet been notified to the Commission under Article 41 of the Euratom Treaty, and therefore at the moment no documents can be found in the Commission’s possession.” Critics of Viktor Orbán were only too happy to find that his administration seemed once again to have been caught lying. Soon enough, however, the relevant documentation was made public on the website of the prime minister’s office.

But before I talk about these newly released documents, which give us only a little more knowledge of the whole Paks affair than we had before, I would like to jot down a few dates by way of a road map.

I began collecting material on Paks and nuclear energy on October 18, 2013 when Viktor Orbán, then in India, boasted that Hungary would have extremely low energy prices in the not too distant future. He brought this up as an economic enticement for Indian investors. He also emphasized his commitment to nuclear energy.

Source: nuclear-news.net

Source: nuclear-news.net

Then for almost two months we heard nothing about nuclear energy. Finally János Lázár broached the subject and talked about advanced negotiations with Russia for Rosatom to construct two new reactors in Paks. What we didn’t know was that on December 10, 2013 János Lázár wrote a letter to Günther Oettinger, commissioner for energy. The released document is a cover letter to “the Draft International Agreement with the Russian Federation.” The letter also indicates that the Commission had been notified earlier, at its November 26, 2013 meeting, that “Hungary intends to enter into an international agreement with the government of the Russian Federation on the cooperation in peaceful use of nuclear energy.” Attached was the draft agreement “in accordance with Article 103 of the European Treaty.” The letter also reveals that talks between Brussels and Budapest about Hungary’s intention to sign such a treaty had taken place even before that date because Lázár assured the commissioner that they took “into consideration the comments obtained from the Commission.” The conversation between the commissioner and the Hungarian government is described as “open and constructive.” The confusion described above was most likely due to Energiaklub’s reference to Article 41 as opposed to relevant Article 103 of the Euratom Treaty.

A month later, on January 13, Viktor Orbán traveled to Moscow where Mrs. László Németh, minister of national development, on behalf of the Hungarian government, signed a document about which we still know very little. A couple of days later curious Hungarian journalists inquired from Günther Oettinger’s office what the European Commission thinks of the Russian-Hungarian agreement. They were told on January 15 that the Commission had not passed judgment on whether the lack of competitive bidding was an obstacle to the European Union’s blessing for the deal. However, they were told by the spokesman for Oettinger’s office that such a probe will take place some time in the future.

A good two weeks after his trip to Moscow, Orbán decided to write a letter to José Manuel Barroso, president of the European Commission, in which  he informed Barroso about “the recent developments with regards to nuclear energy cooperation between Hungary and the Russian Federation.” From the letter it becomes clear that there had been a response from Brussels to János Lázár’s December 10 cover letter attached to the copy of the draft treaty. According to Orbán, “the Commission raised no objection to the draft agreement” and therefore “my government signed the intergovernmental agreement on January 14, 2014.”

Orbán in this letter tried to downplay the fact that the job of building the nuclear power plant was given without any competitive bidding process. He added that “Rosatom, the Russian nuclear state authority, will be in charge of the implementation of the design and construction work. However, whenever any such work or services cannot be provided in-house, the Russian party will undertake an open and non-discriminatory tendering process.”

And finally, Orbán tried to reassure Barroso that the Russian-Hungarian deal actually serves European interests. “We believe that the long-term cooperation of Hungary with the Russian Federation in the field of nuclear power will contribute to strengthening the energy security of the EU as a whole.” It was at about this time that John Lukács, the conservative Hungarian-American historian who had fairly close ties with Viktor Orbán earlier, wrote him an open letter in which he warned about the deadly embrace of Putin’s Russia. I translated Lukács’s letter and Orbán’s rather impertinent reply.

By February 7 the Hungarian parliament, after five hours of debate, voted for a treaty about which the members knew practically nothing, even as opposition to the Russian-Hungarian deal was growing in the country. Most Hungarians didn’t want an extension to Paks, and they especially didn’t want to have the Russians building it. Foreign observers also envisaged a “Comecon reborn,” which looked quite possible after “realigning Ukraine as a satellite state under Vladimir Putin.” Nick Butler of the Financial Times emphasized Hungary’s “acceptance of Russian technology in its nuclear sector” and added that this huge investment will be financed by a Russian loan. He noted a reassertion of Russian power across the region and wrote that “the advance is not military but economic with energy issues to the fore.”

Barroso’s answer came on February 7. He referred to the progress made toward a common European energy policy. He attributed this success to the Commission’s “respect for Member States’ basic choices concerning their energy mix.” He added, however: “Member States’ commitment to comply fully with the rules of the Treaties and secondary legislation, in particular those governing the internal energy market, and to act in a spirit of coordination and full transparency, remains vital.” After the Commission examined the draft agreement it “raised no objections of principle to the agreement from the perspective of article 103.” But it seems that Orbán is still not entirely in the clear because “there are … other aspects of EU law to be observed, such as the rules on public procurement and state aid.”

Many people are convinced that the hidden state subsidies and the lack of public procurement are insuperable obstacles. Although who knows. Viktor Orbán always finds ways to come out on top.

Hungarian president will sign the objectionable amendments while Viktor Orbán seems cocksure in Brussels

Hungarian President János Áder returned from Berlin where he presumably got an earful. Both Chancellor Angela Merkel and Foreign Minister Guido Westerwelle gave their opinions about the Hungarian government’s policies in general and the latest outrage in Budapest: the castration of the constitutional court and the destruction of the most basic principle of constitutional rule, the separation of powers.

While in Berlin Áder told reporters that he tried to enlighten the German politicians about the true nature of the amended constitution and assure them that their criticism was unfounded. Their criticism is based on their lack of knowledge of the details, he claimed. At home demonstrators and public figures tried to convince the president that he should refuse to sign the bill. But some legal scholars argued that Áder, as a result of the amendments, has no choice but to sign the document. Others, including László Sólyom, former head of the Hungarian constitutional court, argued that he does have the power to deny his signature. After all, as long as his signature is not on the bill, the old constitution is still in force and that constitution didn’t take his prerogative away. Áder decided to opt for the first interpretation. He announced that he has no choice but to sign.

Áder made the announcement on MTV, Hungary’s public television station. While a day before he was convinced that all was well with the amended constitution, in “his speech to the nation” he didn’t stress this point. Instead, he told his audience that he had studied the amendments carefully, listened to experts, read all the letters he received. But “a responsible thinking citizen cannot urge anyone to disregard the letter of the law. This is especially true in the case of the president because if he were to step onto the path of unconstitutionality there would be only one consequence. Something none of us wants. Chaos. Anarchy. Illegality.” And then he quoted the words in the newly amended constitution that he hadn’t yet signed: “The President of the Republic shall sign the Fundamental Law or the amendment thereof sent to him within five days of receipt and shall order its publication in the Official Gazette.”  So, he claimed that he has no choice but to sign, adding that this is his duty regardless of whether he personally likes the amendments or not.

Representatives of the new university student movement, HaHa, pointed out that he could have resigned. But no, Áder belongs to the inner sanctum of Fidesz. He has served Viktor Orbán well for years. He wavered only once, after the second lost election in 2006, when he apparently joined the ranks of those who thought that it might not be a bad idea if Viktor Orbán retired.

Tamás Deutsch, his old friend, was elated with his decision to sign. On Twitter Deutsch wrote: “You also know Jánó that THIS is what we once dreamed of.”  Does it mean that these guys have been planning to destroy Hungarian democracy for the last twenty-four years? Let’s hope not.

While Áder was returning to Budapest, Orbán was getting ready to travel to Brussels to take part in one of the periodic summits of the European Council. The European Council is supposed to define “the general political directions and priorities” of the Union. It is the EU’s strategic and crisis solving body, acting as the collective presidency of the EU.

Cheshire cat2Given “the unparalleled uproar” in Brussels and other capitals over Viktor Orbán’s defiance of the European Union, the interest in the Hungarian prime minister was more intense than usual. Normally he doesn’t talk to reporters before these meetings, but this time the Hungarians organized an “international press conference.” Orbán managed to avoid answering questions by insisting that he didn’t want to hear opinions; he demanded ” facts.” Since foreign reporters are not experts in the minutiae of the Hungarian constitution, the “dialogue” became rather strange. He kept repeating: “I beg you, only the facts!”  because so far he hasn’t been presented with any proof that what Hungary is doing is unconstitutional.

All in all, he was very cocky and sure of himself. Luke Baker, Reuters’  reporter in Brussels, tweeted: “Hungary’s Orban smiling like a Cheshire cat as he comes into press conference with international media to defend constitutional changes.” I’d wager to say that Baker had the original Cheshire Cat in mind, not the jolly fellow that appeared in Disney’s Alice in Wonderland. The original cat as depicted by John Tenniel, the illustrator of the 1866 publication of  Lewis Carroll’s book, is a much more sinister character.

Orbán might get off his high horse soon because there are new developments afoot. One is that, according to “reliable information,”  the “Hungarian question” will be on the table at the summit. Second, the German parliament (Bundestag) spent more than an hour today on the amendments to the Hungarian constitution. The initiative came from the social democrats, but all parties joined the socialists in demanding strong action on the part of Germany and Angela Merkel. At the same time Viviane Reding, European commissioner of justice, fundamental rights, and citizenship, warned Hungary of severe consequences as a result of Budapest’s latest moves. Reding talked about the possibility of invoking Article 7 of the Lisbon Treaty and added that Hungary’s subsidies might be cut. “The Constitution is not a toy that can be changed every six months.”  (The students said exactly the same thing.)

Orbán may appear to be unruffled, but all observers agree that the situation is serious. There are signs of impatience and annoyance in Brussels at Orbán’s provocations and games with the European Union. This time he might have gone too far.

In the opinion of many, Hungary is no longer a democracy

If Viktor Orbán were as talented at governing as he is at political maneuvering he would be an excellent prime minister. But his brain power is spent on devising devious traps for his opponents whose imagination can’t possibly measure up to his, with his bag full of tricks. Dirty tricks, dishonest tricks, shameful tricks. Fortunately there are not too many people on this earth who can surpass his moral turpitude. He is a man who thinks that in politics anything goes. I don’t blame the political opposition for being duped by him once again.

So, what happened? The head of the press department of the Prime Minister’s Office said that Viktor Orbán would deliver a speech before the day’s parliamentary agenda. The announced title of the speech was “Magyarország nem hagyja magát!” (Hungary doesn’t give in!). Considering that the vote on the amendments to the constitution was scheduled for today, everybody assumed that the prime minister would talk about his government’s decision to go ahead with the scheduled vote despite requests from Brussels and Strasbourg to postpone it. The title of the speech certainly suggested as much.

MSZP had already decided to boycott today’s session. Their empty seats were decorated with huge exclamation points. Only their leading spokesman for the day, József Tóbiás, was in the chamber ready to deliver his answer to Orbán’s speech. Then came the surprise. The speech was not about the constitution and about the request of the Council of Europe and the European Commission to postpone the vote. It was about a recent court decision that allowed utility companies to pass on to their customers the added expenses that they have to endure because of extra taxes mandated by the government.

He was most indignant. He said that he can “hardly find words fit for polite society” to describe what he thinks of the Hungarian judiciary. The decision rendered is “scandalous.” And he went on and on about the poor Hungarian people who pay too much for utilities and about those foreign companies that earned very handsome profits in the past. He asked all Hungarians “to raise their voices so these companies would realize that they are facing not only the government but the whole nation.” Among other adjectives, he used “impudent” (arcátlan, a favorite word of Fidesz politicians) in connection with the courts. Ferenc Gyurcsány rightly considered Orbán’s attack on the courts “a very serious and unacceptable violation of judicial independence.” For good measure he added that “it is not the courts that are impudent but Viktor Orbán, who doesn’t seem to understand the very basis of democracy.”

József Tóbiás, after a few sentences in which he complained that the prime minister had nothing to say about the most important issue at hand–the amendments to the constitution, surrendered his right to speak and left the chamber.

The Hungarian prime minister could thus demonstrate to the electorate that he is their advocate, battling with the utility companies and the courts that are supporting these awful capitalists, while the MSZP delegates didn’t even bother to show up. What kind of mind can come up with such a scenario? Moreover, even if he achieved his immediate goal he also demonstrated that the fears of the European Union and the Council of Europe are not without foundation. Today the Hungarian prime minister again proved that the country he transformed over the last three years is no longer a democracy. A woman member of parliament cried out during the speech: “Dictator!” while four members of DK held up a banner that read: “Önkényuralom,” a synomym of “Dictatorship!” I think it was a high price to pay for a fleeting moment of victory.

DK's banner that reads "Dictatorship" / Photo Simon Móricz, Népszabadság

DK’s banner that reads “Dictatorship” / Photo Simon Móricz, Népszabadság

Shortly after 5:00 p.m. the amendments were passed. There were only 309 members of parliament present. 265 voted for the amendments, 11 against, and 33 abstained. Most of the Jobbik MPs abstained, but Mrs. Loránt Hegedűs, Péter Schön, and Tamás Sneider said no. The Schiffer wing of the former LMP was there and voted against the bill. So did Katalin Szili, formerly MSZP but now an independent. The Jávor wing of LMP refused to participate in the charade and so did members of DK in addition to the MSZP delegation.

The opposition’s last hope is President János Áder, who is in Berlin at the moment. According to former president and chief justice of the Constitutional Court László Sólyom, in his legal interpretation the president is empowered to veto the bill. Sólyom wrote an article on the subject that appeared in Népszabadság. What an irony, this man who was Fidesz’s choice to become president and who never hid his disdain for the socialists and his support of Fidesz today is able to publish an article only in Népszabadság. I might add that there are a couple of very critical opinion pieces in right-of-center publications like Heti Válasz and Mandiner. Tomorrow I’ll concentrate on Sólyom’s arguments and the writings of these right-wing critics.

Meanwhile, more and more people are expressing their concern about the amended constitution. They point out that the changes are so fundamental and extensive that the original document is unrecognizable. Journalists are calling this new document “Constitution 2.0.” José Manuel Barroso again expressed his worries and so did Herman Van Rompuy, Thorbjørn Jagland, Hannes Swoboda, Martin Schulz (president of the European Parliament), and many others.

There has been only one official Hungarian response to all this. Hungarian Foreign Minister János Martonyi announced that “Hungary is open to dialogue with anyone on the subject and Hungary will ask the opinion of the Venice Commission on this newly amended document.”

And finally, here is the letter Barroso wrote to Orbán on Friday. It didn’t do any good.

Barroso to Orbán

Maiming the Hungarian constitution: Is the Orbán government willing to pay the price?

While opposition politicians are unable to agree on any meaningful joint action and the so-called intellectual class is deeply divided, the Orbán government is merrily proceeding with its plans to rewrite the new constitution. According to constitutional experts, if the latest amendments are voted into law Hungary will be without a valid constitution.

There was only one group that was ready to take things into their own hands. They decided to engage in civil disobedience. Since ordinary opposition gatherings are not even reported in the public media, tightly controlled by the government, they decided to do something that was guaranteed to get media coverage. They climbed a fence and settled in the courtyard of the Fidesz party headquarters. There they sat  for ten hours and repeated a few slogans. Mostly: “Constitution, Freedom” and “We protest the destruction of the constitutional system of the Hungarian Republic.”

The organizers of the Peace March, András Bencsik and Zsolt Bayer, immediately counterattacked. On Facebook they called on their followers to come and teach a thing or two to these little “Bolsheviks.” And they arrived. Someone described “the fruitful political dialogue” this way:

Youngsters: “We protest the destruction of the constitutional system of the Hungarian Republic.” And here are some of the answers from “the peace guardists”: “Do you want to have some acid in your face?” “Get lost and work!” “I’ll slap you on the face, you rat!” “Rotten, lousy communist stooge!” “Go to Moscow!” “Filthy f…ing Jews!” “Stupid fag!” “Come on out, if you dare, you little queers!”  That will give you an idea about the Fidesz fans who gathered in the name of Christian love and peace.

Here is our gentleman who threatened a young man with acid:

 

https://www.youtube.com/watch?v=YpR87Bjqe2M

Perhaps the officials inside the building no longer trust the police because they were ordered to retire after a while. “Volunteers”  arrived to save the building and those inside it from the peaceful demonstrators. Most of them came from the notorious Fradi (Ferencváros) fan club. One of the volunteers spent ten years in jail for murder and now serves as a “coordinator” for the fan club. The football hooligans physically tried to remove the protesters. Eventually the demonstrators left on their own but not before some of them climbed a wall and positioned themselves on a balcony. The clever student leaders began reciting Fidesz’s 1989 party program which was full of liberal demands. The counter-protesters naturally had no idea that what they were screaming at was really Victor Orbán, their idol.

Older women were especially vocal. They simply couldn’t understand what the protesters were complaining about. How can they be dissatisfied when at last the country has a “good government”? One woman, obviously a pensioner, claimed that it is her money that these students are wasting.

One really has to be deaf and blind to claim that the small crowd that gathered in the courtyard of the Fidesz headquarters was “rabble” as Péter Boros, prime minister of Hungary for a few months after József Antall’s death in 1993-1994, did. Interestingly enough, he had nothing to say about the behavior of the counter-protesters. One can get a vivid picture of the Fidesz crowd by watching this video:

But perhaps the most shocking and most telling example of the mindset of the peace marchers and Orbán supporters is a very professionally executed banner. On it one can see practically all the important MSZP politicians in addition to Ferenc Gyurcsány, Gordon Bajnai, Lajos Bokros, and András Simor. The banner reads: “The nation is in mourning! It suffers from the presence of traitors.”  In Hungarian it has even more punch: “Gyászol a nemzet! Hazaárulóktól szenved!”  Just think about this horrendous statement. I don’t know whether the people actually know what they are saying, because from this banner it is clear that what they want is a one-party system. The opposition has no right to exist. In fact, they should be eliminated as traitors used to be. Perhaps hanged.

The nation is in mourning! It is suffering from the presence of traitors / Népszabadság Árpád Kurucz

The nation is in mourning! It is suffering from the presence of traitors / Népszabadság Árpád Kurucz

Yesterday’s protest was laudable in many ways. Take, for instance, the poise and dignity of the protesters. As you can see on the video, the young man didn’t lose his cool despite repeated physical and verbal abuse. Second, their protest lasted over ten hours. At the beginning they were alone, but once word got out about the gathering others joined them. By the time the demonstrators decided to walk over to the building of the Constitutional Court their numbers had swelled to about 1,000. By contrast, the counter-demonstrators got tired of screaming and their numbers decreased fairly rapidly.

The football hooligans of Gábor Kubatov’s Ferencváros football team, I think we can now say with conviction, are in the employ of Fidesz. Not necessarily in the sense of having paid positions but in being ready to assist “their party”  if necessary. Certainly, someone from the building called on them. One can’t help thinking of the storming of the public television station by Fradi football hooligans.

And finally, the protesters are determined to continue their fight for democracy, the constitution, and the rule of law. Moreover, they seem to have realized that without parties they cannot be successful. At their next demonstration tomorrow parties are welcome.

And, in a critical turn of events, the European Union and the Council of Europe are also waking up to the harsh reality in Hungary. I already wrote about German Undersecretary of Foreign Affairs Michael Link’s warning letter in the Frankfurter Allgemeine Zeitung a few days ago. I was sure at that time that something was brewing in Germany. And, indeed, today ” in a statement reflecting deep seated anxiety at the direction Orbán is taking Hungary, Germany and three other EU countries called for Brussels to be given new power allowing it to freeze EU budget funds to a member state in breach of Europe’s ‘fundamental values.'” The three other countries are the Netherlands, Denmark, and Finland. Since then we found out from the spokesman of the European Commission that José Manuel Barroso phoned Viktor Orbán this morning and warned the Hungarian prime minister that the proposed changes in the Hungarian constitution are not only incompatible with the rule of law but also might violate laws of the European Union. Following the conversation Barroso sent a letter in which he summarized the points he made during the telephone conversation.

I should also mention that today we learned that President János Ader will be in Berlin on Monday and Tuesday next week. On Monday he will meet President Joachim Gauck. Tuesday his first trip will be to Foreign Minister Guido Westerwelle followed by a conversation with Chancellor Angela Merkel. Some might say that this trip was arranged some time ago and has nothing to do with the current brouhaha over the Hungarian constitution. Perhaps, but I find it odd that the president of Hungary has an appointment with the German foreign minister. I doubt that this is normal protocol. My hunch is that although the trip might have been arranged earlier, the meeting with Westerwelle was added only recently. But this is only a guess on my part.

Another round of talks between Viktor Orbán and José Manuel Barroso

Viktor Orbán had a full schedule today: a lecture in Brussels and three important meetings with José Manuel Barroso, president of the European Commission; Herman Van Rompuy, president of the Council of Europe; and Martin Schulz, president of the European Parliament. A pretty exhausting schedule, especially since tomorrow the Hungarian prime minister is flying to Moscow to have a discussion with Vladimir Putin. The meeting will be brief, only half an hour, but the topics to be covered are weighty: setting natural gas prices for the next ten years and possible Russian involvement in the extension of the Paks Nuclear Plant.

In anticipation of the Orbán visit to Brussels, commentators differed in their assessment of what Viktor Orbán could expect in his negotiations. Some predicted difficult negotiations while others contended that after the two-year-long “freedom fight” it was time for Hungary to mend fences and normalize relations. Interestingly enough, Magyar Nemzet‘s commentator predicted a tough time, especially in light of the IMF-EU report released on January 28. The IMF officials predicted that in both 2013 and 2014 Hungary’s deficit will exceed 3%. If the European Commission takes the report seriously, their opinion might adversely influence Ecofin’s decision about lifting Hungary’s Excessive Deficit Procedure (EDP). And Viktor Orbán’s political future might depend on this decision. If the EDP is lifted, the Hungarian government could spend more freely in 2013 and early 2014 in anticipation of the election sometime in April of that year. Otherwise, further austerity measures must be introduced.

Viktor Orbán’s meeting with  Herman Van Rompuy was also more than a courtesy visit. As it stands, the European Union is planning to reduce the subsidies to Hungary by 30% over the next seven years. Considering that the little investment there is in the country comes from the EU convergence program, a 30% reduction could be devastating to the Hungarian economy.

Orbán began his Brussels schedule with a lecture at the Bruegel Institute, a European think tank specializing in economics. HVG somewhat sarcastically entitled its article about Orbán’s appearance at Bruegel “Orbán teaches economics to his audience in Brussels.” The very idea of Viktor Orbán giving a lecture on “work-based economies” to a group of economists working for this think tank borders on the ludicrous. I also wondered what his listeners thought when he boasted about his government’s achievements and called his economic policies a “true success story.”

The meeting between Barroso and Orbán took place in the afternoon and lasted a little longer than expected. At the subsequent joint press conference Barroso told the reporters that they talked about the upcoming EU summit in early February, about the 2014-2020 EU budget, and naturally the present state of the Hungarian economy. For the time being the Commission has no definite opinion about the past performance of the Hungarian economy, but by February 22 their recommendations to Ecofin will be ready. There was one sentence here that I think needs more clarification: “We also discussed the quality of the economic adjustments.” To me this means that Barroso and the Commission are aware that the way the Hungarian government achieved the low deficit may not be optimal.

Viktor Orbán and José Manuel Barroso at the press conference, January 30, 2013

Viktor Orbán and José Manuel Barroso at the press conference,
January 30, 2013

Viktor Orbán was more exuberant. “It was an excellent meeting,” he announced. They discussed matters that had created friction between the the Commission and Hungary in the past. He claimed that on the issue of the Hungarian National Bank they came to an agreement quickly. He admitted, though, that there are outstanding issues. Orbán indicated that he has no intention of backing down: the European Court of Justice will decide those issues he refuses to address himself. I might add here that cases the Commission sends to the Court usually go in the Commission’s favor.

Barroso sent a message to the Hungarians about the “rights and duties of the European Commission to insist that all national governments respect the laws of the Union.” The Commission tries to be impartial and objective. The Commission, like an umpire, must enforce the rules and regulations. This comment was most likely prompted by last year’s anti-European Union demonstrations instigated by the Orbán government.

Viktor Orbán might claim that the meeting was successful, but serious differences of opinion remain between the European Union and the Hungarian government over economic policies. The IMF-EU delegation predicted that further budget adjustments will be necessary to hold the deficit under 3%. Viktor Orbán disagrees, but I would be surprised if in the next few months, sometime before April, György Matolcsy didn’t announce another new tax in order to boost revenues.

All in all, at least on the surface, the meeting was friendly, or at least the two men pretended that it was. However, both Barroso and Orbán were careful in formulating their thoughts. In fact, Orbán opted to speak in Hungarian instead of his customary English, ostensibly because most of the reporters present were from Hungary. I suspect that the real reason was to avoid any imprecise formulation of his carefully worked out statement.

Whether Viktor Orbán was hoping for a public promise of support with regard to the Excessive Deficit Procedure I don’t know, but he didn’t get it. Olli Rehn, the commissioner in charge of finance, will have to mull over the details of the IMF report as well as the 2012 economic data submitted by the Hungarian Statistical Office. In my opinion, the 2013 budget belongs in a Brothers Grimm collection. The question is what the experts in Brussels will think of it.