Putin-Orbán agreement on Paks

Is Viktor Orbán a coward?

As I was writing yesterday’s post on Viktor Orbán’s March 15th speech and came to the part where he talked about bravery as an essential ingredient of a nation’s success, my mind wandered to one manifestation of his own lack of bravery (admittedly, most likely wise risk management on his part). It was in 2006 that he made the mistake of agreeing to have a television debate with Prime Minister Ferenc Gyurcsány, who headed the MSZP ticket. Score (being charitable): Gyurcsány 1, Orbán 0. Since then he has systematically avoided head-to-head encounters with his opponents.

Prior to 2006 Orbán had two public debates, one in 1998 with Gyula Horn and another with Péter Medgyessy in 2002. The first debate was a clear win for Orbán, who at that point, following U.S. practice, thought pre-election debates were a capital idea. Gyula Horn, who had had a long political and diplomatic career in the Kádár regime, was no match for the young and more dynamic Viktor Orbán. Although Horn is considered by many the best prime minister of Hungary since 1990, on that occasion he looked unprepared and tired. In a major miscalculation, I don’t think he took the debate seriously.

After the first debate, I’m sure Viktor Orbán was looking forward to taking on Péter Medgyessy in 2002. Medgyessy was not known for his eloquence; in fact, people made jokes about his difficulty with long Hungarian tongue twisters. Orbán was dynamic, Medgyessy very low-key. Moreover, according to all the polls, it looked like easy sailing for Fidesz at the election. Orbán had nothing to lose. But in the debate Orbán looked and sounded like a bully while Medgyessy came across as a modest everyman with whom people could sympathize. As it was, the Hungarian electorate had had enough of the incessant government attacks on everyone who didn’t support them. Orbán lost the election, a result he never quite accepted.

Then came the debate of 2006 with Ferenc Gurcsány. It is something Orbán will never forget or forgive. I’m convinced that his hatred of Gyurcsány dates from that day. I watched the debate and immediately proclaimed it a rout. (The debate is available on YouTube.) Orbán was demolished. Interestingly enough, some people in our group who were exchanging e-mails during the debate were not as sure as I was. Later polls confirmed my first impression. Even Fidesz supporters had to admit that Orbán had lost the debate. Since then Orbán has been trying to pay Gyurcsány back for his humiliation. If it depended on him, he would send Gyurcsány to jail for life. Orbán may be on top of the world right now, but he still considers Ferenc Gyurcsány a threat. Moreover, it seems that after 2006 he got permanently cold feet when it comes to public debates.

He refused to debate Attila Mesterházy in 2010 and it looks as if he has no intention of debating this year either. There are different excuses each time. Four years ago he claimed that there were too many candidates. This year he listed several reasons for refusing to debate. First was that “to this day we don’t know who the real leader of the opposition is: Ferenc Gyurcsány, Attila Mesterházy, or Gordon Bajnai.” Well, this sounds like a lame excuse to me. After all, the united opposition’s candidate for premiership is Attila Mesterházy. Mesterházy called on Orbán to debate several times; in his blog he even dubbed Orbán a coward for refusing to measure the Fidesz program against the opposition’s. Of course, the fact is that Fidesz has no party program unless one considers the decrease in utility prices a program. That is why the following “manifesto” that appeared on the Internet is so apt. In 1848 Sándor Petőfi and his young friends had a list of twelve demands, including freedom of the press, an annual national assembly in Pest, national army, civil and religious equality before the law, equal distribution of tax burdens, and abolition of socage. Viktor Orbán had the gall to compare his lowering of utility prices to the abolition of socage and serjeanty, feudal dues. As you can see, Orbán’s 12 points in this “Orbán” version of the twelve demands are all the same: “utility decreases, utility decreases” twelve times over. Thus it would be rather difficult to have a debate on party programs.

rezsicsokkentes

A take-off on the Hungarian nation’s demands in 1848

It would be uncomfortable to answer questions about the Putin-Orbán agreement on Paks or the incredible corruption. If Mesterházy were well prepared, he could demolish Orbán’s economic figures. And what about the ever larger national debt? All in all, Orbán will not debate because it is not to his advantage. Moreover, his admirers don’t even demand any program. They seem to be perfectly happy with the government’s performance in the last four years and look forward to four or even eight more years of the same.

Another reason that Orbán gave for his refusal to debate is that in his opinion there is no political formation today outside of Fidesz-KDNP that is fit to govern (kormányzóképes). Such labeling in a democracy is unacceptable. It just shows what kind of democracy we are talking about in Hungary.

András Schiffer of LMP would like to have a debate with Orbán, Mesterházy, and Vona (Jobbik). As you know, Schiffer is not one of my favorites, but he is a good debater and could score extra points if given the opportunity. I’m sure that Orbán will not be game, and I understand that Mesterházy will agree only if Orbán also participates. So, we can be pretty sure that there will be no debate in 2014. The opposition will remain invisible.

New details on the Russian-Hungarian agreement on Paks; Kim Scheppele’s “Hungary, An Election in Question, Part 2″

I’m returning briefly to the secretive Putin-Orbán agreement on the addition to the atomic power plant in Paks. Shortly after the news of the agreement became public, I heard rumors to the effect that what the Orbán government actually wanted was not so much a new power plant built by Rosatom but an outright loan of 5 billion dollars. The Hungarian media spent a few lines on this rumor, but the topic was dropped soon enough. Most likely the rumor couldn’t be substantiated. But now Népszabadság has returned to the topic. In a fairly lengthy article the reporter who has lately become a kind of Paks expert unearthed a number of new strands in the story.

The information comes from “an expert who is an adviser to the government with knowledge of the details” who asserted that the original rumor about the loan the Orbán government wanted so badly was in fact true. The government wanted a loan that it could use as it best saw fit. The Russian partner, however, wanted to link the loan to the extension of the Paks power plant. Although negotiations went on for about a year, the two sides couldn’t come to a satisfactory agreement. At this point István Kocsis, former head of Paks and later of MVM (Magyar Villamos Művek/Hungarian Electricity Ltd), was asked by the government to use his good offices with the head of Rosatom. It didn’t seem to bother Orbán that Kocsis had been charged with embezzling billions, a case that is still pending.

Apparently Kocsis achieved miracles and in no time Rosatom had a contract ready to be signed. Népszabadság‘s informant claims that the Hungarians couldn’t change a word in the terms of the contract. There is, in fact, the suspicion that the reason the Hungarian text is so awkward is that most likely it was a translation from Russian. Earlier difficulties arose as the result of Hungarian insistence that the loan be extended to Hungary even if for one reason or another the power plant couldn’t be built or the project were protracted. At the beginning Rosatom insisted that the money would be lent to Hungary only as the work progressed. We still don’t know exactly what is in the agreement but, as Népszabadság‘s informer said, we may find out that “in the final analysis the Orbán government didn’t bring two reactors but ‘a new IMF loan’ from Moscow.”

The way the Orbán government spends money every penny will be needed. As it is, the national debt is higher than ever. It is over 80% even with the large infusion of money the government laid its hands on from the private pension funds. If we discount this “stolen money,” the national debt would be over 90% of the GDP. The government so far has spent more than 600 billion forints buying up private utility companies and is embarking on very ambitious plans to create a so-called “museum quarters” in Pest, which will accommodate the museums and Hungary’s National Library that are currently housed in the Royal Castle. This project is necessary because Orbán wants to move the entire government to the Castle District. The president’s office would move from the Sándor Palace to the Royal Castle and Viktor Orbán would presumably move into the Sándor Palace.

Yesterday another interesting tidbit about the Putin-Orbán agreement saw the light of day. An LMP member of parliament, Bernadett Szél, initially demanded access to the document but her request was refused. LMP will sue the government on that issue. She was, however, granted a half-hour interview with Mrs. László Németh, who admitted to her that the Orbán-Putin agreement was signed before the Hungarian government had a chance to authorize the deal. Lately, it seems, Fidesz politicians often slip and tell the truth by mistake. Like Lajos Kósa about the tape of Ferenc Gyurcsány’s speech at Őszöd. The next day he had to “correct himself.” That was the case with Mrs. Németh as well. Her ministry immediately corrected her. The ministry’s spokesman claimed that it is clear from the January 31 issue of the Official Gazette (Magyar Közlöny) that the authorization was dated January 13 and it was on January 14 that the agreement was signed. My only question is: why did they publish the text of the authorization only on January 31?

Finally, let’s not forget about the Holocaust Memorial Year. András Heisler, president of Mazsihisz, decided to step down from the advisory board of the House of Fortunes. Since Mazsihisz (Federation of Hungarian Jewish Communities) opposes the establishment of this new museum, Heisler saw no reason to remain a member of the board. Moreover, as he said, the board is totally inactive. Mária Schmidt, who is the government-appointed director of the project, called the board together only once.

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Hungary: An Election in Question

Part II: Writing the Rules to Win – The Basic Structure

Professor Kim Scheppele, Princeton University

How did the governing party Fidesz stack the deck so much in its favor that the upcoming Hungarian election’s results are not in doubt?

Fidesz started immediately after its election victory in 2010 to reshape the electoral system to ensure its hold on power. The Fidesz parliamentary bloc, which enacted constitutional changes without including or consulting any opposition party, slashed the size of the parliament in half, redrew all of the individual constituencies unilaterally, changed the two-round system to a single first-past-the-post election for individual constituencies, and altered the way votes were aggregated.

Moreover, Fidesz has granted dual citizenship and therefore voting rights to ethnic Hungarians outside the borders who are overwhelmingly Fidesz supporters, while at the same time maintaining a system that makes it comparatively harder for Hungarian citizens living or working abroad to vote.

The media landscape and campaign finance rules overwhelmingly benefit Fidesz and a series of last-minute changes to the law just before the campaign started put the newly united center-left opposition at an even greater disadvantage. In addition, the governing party has captured the election machinery which is now staffed with its own loyalists.

The sum total of all of these changes makes it virtually inevitable that Fidesz will win.

The devil is in the details, so let’s walk step by step through these various ways that the governing party has changed the rules in its favor.

As one of its first acts in office, on 25 May 2010, the Fidesz parliament amended the constitution it inherited to cut the parliament’s size in half. This was a move lauded by all sides of the political spectrum, as the old 386-member parliament was widely perceived as too large to be effective and too expensive for a small country in debt. The new 199-member parliament that will be seated after the 2014 elections will represent new electoral districts that had to be newly drawn to accommodate this new, smaller parliament. Redrawing the districts was not only widely welcomed, but also required by the Constitutional Court, which had ruled (first in 2005 and again in 2010) that the old districts had become too unequal in population size to give all citizens an equal vote.

The old districting system already favored Fidesz because the larger districts were in the urban strongholds of the left and the smaller districts were in the rural districts of the right. As a result, rural conservative votes were given more weight because it took fewer of their votes to elect an MP. But the way that Fidesz redrew the districts for 2014 gave their party an even greater advantage than they had before.

Without any consultation with opposition parties, Fidesz enacted a new “cardinal law” in 2011 that simply set the boundaries of the districts (Law CCIII/2011). While most election laws provide principles for drawing districts and assign some neutral or at least multi-party body to actually draw the boundaries, the borders of the districts in Hungary are now written directly into the law. Moving a district boundary by even one block requires a two-thirds vote of the parliament. The districts are therefore heavily entrenched and were not the result of either a public or an inclusive process. No justification for these districts was offered by the governing party.

Of course, not all districts in any electoral system have identical numbers of voters. But how much can districts vary before they deny equality of the vote?  The Commission for Democracy through Law (the Venice Commission), recommends no more than 10% variation as the international standard. The Venice Commission is not terribly clear about what this means, but given that the Venice Commission is working with a principle that demands that votes be weighted as equally as possible, one can guess that this means that districts should not vary by more than 10% in population overall.

The Hungarian law is fiendishly clever in appearing to come close to that standard while being miles away from it. The Hungarian Election Law (Act CCIII of 2011 – section 4(4)) mandates that the districts should not vary by more than 15%. The Venice Commission was not thrilled with the difference, but let it pass. They shouldn’t have.

A closer reading reveals the trick. The Hungarian law requires that districts vary by no more than 15% calculated from the mean number of voters in the district. This is not an overall 15% deviation, as the Venice Commission presumed, but is instead a standard that permits districts to vary by 15% below the mean and 15% above it.

An example demonstrates what a huge difference this makes. To aim at an average district containing 100 voters, a 10% overall deviation would permit districts to vary between 95 and 105 voters. (Divide 95 by the 10 voters that separate the largest and smallest districts and you get about 10%). The Hungarian law would permit districts to vary between 85 and 115 voters – 15% above the mean and 15% below the mean of 100. The gap between 85 and 115 voters in a district would be 35% overall! (Calculated the same way as above: 30/85 = 35%.) This is a huge difference that the Venice Commission did not seem to see.

In the actual districts were constructed as a result of the new election law, the variation became even larger than that. As you can see in the chart below, the smallest districts in Hungary now have about 60,000 voters while the largest districts have nearly 90,000 voters, roughly a 50% gap. (The horizontal axis shows the number of eligible voters in the new constituencies based on voter data from 2010, and the vertical axis shows the number of districts in the new scheme with that number of voters.) Not only are the actual districts highly unequal, but this variation has no apparent justification.

sizeThe Size of Parliamentary Districts in Hungary after Redistricting
Source: Calculations by Gábor Tóka, Central European University

Hajdú-Bihar County, in the eastern part of Hungary, provides a case in point. A last-minute amendment to the 2011 election law divided the city of Debrecen into two districts of highly unequal size. Now, one district has 87,278 voters and the other, right next to it, has 60,125 voters. These are very nearly the largest and smallest districts in the country, side by side, without official explanation.

The government may have given no reasons for its districts, but this huge variation in district size is not random. As Political Capital shows, the left-leaning districts are systematically 5,000-6,000 voters larger than the right-leaning districts, which means that it takes many more votes to elect someone from a left-leaning district than to elect someone from Fidesz.

The borders of these new districts also appear to be drawn to Fidesz’s advantage, since they just happen to break up the areas where the opposition alliance voters have traditionally been strongest and they scatter these opposition voters over a new Fidesz-majority landscape. Historically left-leaning districts were partitioned and blended into historically right-leaning districts, creating fewer districts where left-leaning candidates are relatively certain to win.

One of the most obvious gerrymanders occurred (again) in Hajdú-Bihar County. In the 2006 election, which went nationally by a wide margin to the Socialists, the county voted three of its nine districts for the Socialists and six for Fidesz, as you can see in the chart below, on the left. If the results from the 2006 election were tallied in the newly drawn six districts for that country, as shown on the right, Fidesz would now win every district. The map reveals that this all-Fidesz result was accomplished by drawing the districts to divide up the compact concentrations of Socialist voters so that they would become minority voters in Fidesz-dominant districts.   Examples like this one can be found all over the country, as left-leaning districts were partitioned to break up clusters of opposition voters to mix them with even more conservative voters from neighboring areas.

hajduThe US may have invented the gerrymander, and so it may seem presumptuous for an American to complain about the new districts. But the Hungarian gerrymander is different from the (also outrageous) American type. In US national elections, gerrymanders occur at the state level, which means one party cannot redistrict the whole country at once. In the US, districting plans are also subject to judicial review to check the worst self-dealing. In Hungary, however, the whole country was redistricted by one party all at once so the Hungarian gerrymander is far more decisive. And there is no judicial review to correct excesses. In addition, unlike in America where the governing parties in the states get a new shot at gerrymandering every 10 years, after each census, it will take a two-thirds vote of the parliament to change any district in Hungary’s future.

Hungarians don’t just cast votes for individual representatives in districts of the sort we have just seen, however. Hungarians cast two votes in national elections. In addition to casting ballots for representatives in the voters’ individual constituency, voters cast second ballots for party lists. Those votes are aggregated across the country and additional parliamentary seats are awarded to parties based on these results, above and beyond the seats won in the individual districts.

In the new parliament as in the old one, MPs elected both ways sit together with equal status. While this dual system of MP elections appears to mitigate the effect of the gerrymander, the new parliament, unlike the old, allocates more seats to the individual constituencies than to the party-list mandates. The new parliament features 106 district mandates and 93 party-list mandates. Since individual constituencies are awarded on a winner-take-all basis, this tilts the system toward an even more disproportionate distribution of mandates than in the prior also-disproportionate parliament.

Individual constituencies in Hungary were allocated from 1990 to 2010 in a two-round run-off system. Unless a candidate won 50% or more in the first round, a second round would be held between the highest vote-getters to determine who won the mandate. This system meant that many political parties would field candidates in round one, and then form coalitions before round two after the relative viabilities of the individual candidates could be assessed. Hungarian political culture grew up around this system so that parties were not accustomed to bargaining before any votes were cast.

The new electoral system in Hungary eliminates this second round, benefiting Fidesz, as the largest single party. It can now win districts outright without needing majority support because it only has to get more votes than any other party on the (single) election day to capture the constituency. Given that the districts have been drawn to give Fidesz an advantage overall, one can imagine other parties will have a hard time winning constituencies which have been constructed precisely so that Fidesz is the largest party.

The design of the new system means that the democratic opposition would only have a chance to win individual constituencies if the various opposition parties of the left could create a grand coalition before the election so that they didn’t run candidates against each other. But this was a result that everyone familiar with politics in Hungary knew would be hard to accomplish. The parties in the “democratic opposition” (excluding Jobbik) are sharply divided both by ideology and personality. But unless these parties could set aside their differences to unite, they would surely lose.

The announcement on 14 January that five parties in the opposition had managed to agree on a single list of candidates for the single-member districts as well as a common party list was therefore something of a political miracle.

But can the party leaders of the Unity Alliance bring all of their voters along with them? Many voters for the smaller parties on the left often don’t trust the larger Socialist Party which now dominates the coalition.  And some personalities in the mix are popular only within their own parties and unattractive to the others in the coalition. As a result, it cannot be assumed that votes for the five parties can simply be added together to produce a united whole that is the same size or even larger than the sum of the parts.

Because voters cast two ballots on election day, the individual constituencies are only part of the story, though they are the largest part. Parties will also run national lists to compete for voters’ second votes. The new conditions that came into effect since the last election actually make it easier than it was in 2010 to nominate candidates for the individual constituencies and to register parties with national lists, something that is consistent with a dominant-party strategy to divide up the opposition as much as possible.

But the party-list system also builds in incentives for small parties to join together to form a larger alliance. To be approved to run a national list, parties must field candidates in at least 27 individual constituencies in at least nine of the 19 counties plus Budapest. While this guarantees that parties are truly national, it also aggravates the problems created by the loss of the second-round runoff in the individual constituencies. Any new national list adds to the “clutter” of individual candidates in the individual constituencies and further fragments the vote.

So it makes sense, under these rules, for small parties to form a common national list. To avoid competing head-on and perhaps pushing each other below the 5% threshold for entering the parliament, small parties on the same side of the political spectrum are pushed by the logic of the system to join forces. But as soon as they do so, they run into another problem. In all elections since 1994, parties have had to meet a 5% threshold of the popular vote to gain a fraction in the parliament. For two parties that run together, the threshold rises to 10% and for three or more parties, the threshold is 15%.

If the smaller parties were going to unite for 2014, then, they ran the risk of together missing the higher threshold required of joint party lists. The rules of the game have therefore pushed the small parties of the “democratic opposition” to do what they did – which was to join with the Socialists to form Unity. Only an alliance with the larger Socialist party guaranteed that these smaller parties would be able to enter the parliament given the higher thresholds for joined lists. Because many of the smaller parties were created precisely to distance particular groups of voters from the Socialists, however, this is an uneasy alliance at best.

So that is where we were as the campaign was launched, witnessing a democratic opposition alliance whose members do not like each other much but who have to work together if they are to have any hope of ousting Fidesz given the way that the rules are structured. The public squabbling that occurred as the grand coalition went together belied the name of Unity Alliance and weakened their electoral position. They have the campaign period to convey a new unified message, but – as we will see – that is going to be very hard.

Hungarians are not happy with the Putin-Orbán agreement on the Paks reactors

Well, it seems that for perhaps the first time in almost four years Viktor Orbán may be running into serious political difficulties on at least two counts. One is the government’s handling of the Memorial Holocaust Year, which has caused an international outcry by Jewish organizations as well as historians of the period. The second is his decision to make a deal with Vladimir Putin for the Russian state-company Rosatom to build two new nuclear reactors in Paks.

The Russian government will provide a loan of 10 billion euros which Hungary will have to pay back in thirty years. Although we know nothing of the details, we are supposed to believe János Lázár’s claim that the agreement just signed in total secret “is the business deal of the century.” In fact, the deal was so secretive that even László Kövér learned about it only after the fact. And to make sure that no one will know any of the details for at least a decade, Sándor Pintér, minister of interior,  immediately declared the negotiations and their accompanying documents a state secret.

Not everybody is happy on the right. Kövér, perhaps the best known anti-communist in the bunch, was apparently disgruntled but, being a good soldier, kept his anger to himself. Ágoston Sámuel Mráz, “the independent” political scientist at Nezőpont, initially said that many of Orbán’s supporters were surprised that the two reactors will be built from a massive Russian loan “because Viktor Orbán for a long time used anti-Russian rhetoric.” But since Kövér said nothing publicly, soon enough Mráz was writing articles supporting the brilliant idea of cooperation with Putin’s Russia.

Heti Válasz wasn’t exactly taken with the deal and rightly pointed out that “Paks is not a simple business deal.” Building the two new reactors “is a geopolitical concern.” And András Lányi, a faithful supporter of Fidesz and adviser to Viktor Orbán, thinks that Paks is “bad business and poses an unacceptable risk.”

At last we also know what Hungarian citizens think because Medián’s poll, taken between January 24 and 28–that is, about two weeks after Viktor Orbán’s visit to Moscow, was just released. The first surprise for me at least was that 82% of the population knows about Paks. One might say that, given the importance of this piece of news, the figure is not all that high. However, given the total lack of interest of the Hungarian population about anything political, I think this is not a bad result and shows the concern of Hungarians over a questionable decision that was thrust upon them.

Half of the population (51%) agrees that new reactors are necessary as a supplement to the existing ones. However, the Russian connection is controversial. Those who oppose it are in the majority (56%); only a third of the population supports it. As shown in diagram #1, half of the Fidesz voters support the Russian deal. (In the summer of 2012 only 25% of them supported a reactor built with Russian technology, which demonstrates the power of government propaganda.)

Paks abra1Diagram #2 shows the results of a question about receiving news of the Putin-Orbán agreement. Were people very, somewhat, or not at all surprised hearing the news? Seventy percent of even Fidesz voters were very or somewhat surprised. By contrast, all of LMP’s (I supposed one could call them naive) supporters were surprised; none thought that such Russian-Hungarian cooperation could possibly occur. Another interesting figure concerns those who are undecided voters (elkötelezetlen;  second from the bottom). Their figures are closer to the responses of the opposition parties than those of Fidesz-KDNP voters, which strengthens my conviction that the majority of the undecided voters leans toward the opposition rather than toward the government party.

Paks abra2Diagram #3 is the most important one. Here Medián asked whether people would support holding a plebiscite on the future of Paks and the further use of nuclear energy. The answer is clear: 59% the population as a whole supports holding such a plebiscite. Even Fidesz voters.

Paks abra3In light of these figures I have the feeling that Viktor Orbán miscalculated the effect of his “business deal of the century” and made a big mistake in forcing it through before the election. He rather cockily told Professor John Lukacs that “I would bet a lot that on the question of Russian relations the day after the election there will be perfect agreement.” Of course, that is, if Fidesz wins the election. But given the significant rejection of the Russian connection and the even larger demand for a popular vote on the subject, the quickly signed agreement might have been a serious mistake from Fidesz’s point of view. The election might turn on the question of Paks. Some observers are already comparing the situation to the Horn government’s decision in 1998 to go ahead with the controversial Slovak-Hungarian treaty that obligated Hungary to build waterworks at Nagymaros after Hungary lost the case at the International Court of Justice. Without going into details, suffice it to say that the treaty originally signed by Czechoslovakia and Hungary played a large role in the political unrest in 1988-89. Some people claim that Horn’s decision to go ahead with the project played a  major role in the socialists’ defeat in the 1998 election. Orbán might find himself in a similar situation, which is largely due to his ever-growing self-confidence. In the last four years he managed to get away with everything and therefore abandoned all caution. But he might be running out of luck.