TV2

Renewed attack on the Hungarian media: freedom of the press is at stake

As I was settling down to write this post, a large demonstration in Budapest was just coming to an end. It was organized by journalists who protested the sudden firing of the editor-in-chief of Origo, one of the best and most widely read internet newspapers. Gergő Sáling, the editor in question, has been working for Origo for twelve years, but it was only in November 2013 that he was named editor-in-chief of the paper. Why did the owner of Origo, Magyar Telekom, decide to sack Sáling? Origo has the reputation of being an independent site that views Hungarian politics in a critical manner. But rumor has it that pressure was put on Origo to change its government-critical posture, and as a result editors-in-chief have come and gone lately. It seems that Sáling was not pro-government enough. In fact, he made the mistake of allowing András Pethő, one of the journalists at Origo, to investigate the latest Lázár affair.

The sign says "Is it still possible to bark?" Source: Klubrádió

The sign says “Is it still possible to bark?” Source: Klubrádió

The Origo affair is only the tip of the iceberg. Since winning two elections in a row, Fidesz and the Orbán government have decided to attack the remaining remnants of Hungarian democracy with full force. Besides the NGOs, their other target is the media. This time, however, they may have gone too far. Something unexpected happened. Even right-wing journalists joined liberals to oppose the latest plans to silence critical voices.

A new bill was submitted for consideration to levy heavy taxes on media outlets’ advertising revenues. The new bill proposes taxes on all such revenues but on a sliding scale. Those outlets with the largest advertising revenues would have to pay a tax of 40%. The bill seems to have been aimed at RTL Klub, the largest foreign-owned commercial television station in Hungary. The other important commercial station is TV2, but it seems it would be spared the 40% levy. You may remember that TV2 was recently purchased by mysterious buyers suspected of being closely connected to Fidesz. So, the first reaction was that the Orbán government wants to eliminate TV2’s only serious competitor by financially ruining RTL Klub. The management of the television station claims that if they are forced to pay such a hefty sum on their advertising revenues, they might as well close their doors. Soon enough they will be bankrupt. In fact, RTL estimated that its share of the ad tax would be about 4.5 billion forints, nine times its 2013 profits.

The story might not be so simple, however, because it looks as if TV2’s management is also up in arms and ready to join RTL Klub’s protest. I also heard rumors that even HírTV might join them. That may be only a rumor, but today’s Magyar Nemzet came out with a scathing editorial on the advertising tax. Péter Csermely, deputy editor-in-chief of the paper, viewed the bill as a bald political move: “the two-thirds indeed wants to step on the throat of freedom of the press.” Strong words from Csermely who normally on the P8 program makes Fidesz politicians look good with his softball questions. In his opinion, taxing advertising revenues makes no sense whatsoever because the central budget will receive only nine billion forints from this new tax while every ten forints spent on advertising adds fifty forints to the GDP. So, he came to the conclusion that the proposed tax is meant to put a lid on free speech and the press.

But that is not all. László L. Simon, the Fidesz member of parliament who proposed, or more precisely lent his name to, the bill, threatened that further taxes, this time on internet social media, will be introduced. And speaking of the internet, a few days ago the Constitutional Court came to the conclusion that comments attached to articles are the responsibility of the publishers. This ruling may mean that online newspapers will no longer allow readers’ comments.

But let’s return to the Lázár affair that ended with the firing of the editor-in-chief of Origo. Some time ago, one of the journalists at Origo went to court because the prime minister’s office refused to give out details about secret trips János Lázár took. The courts backed transparency and the law and ruled that the details of the trips, rumored to be very lavish, must be revealed. The prime minister’s office reluctantly obliged. It turned out that the cost of these trips exceeded the wildest imaginations of the journalists. In November 2912 Lázár spent three days in London. The bill was 920,000 forints. In March 2013 he spent two days in Switzerland that cost 469,000 forints just for lodgings. In July he traveled to Italy, again for only two days, which cost the taxpayers 582,000 forints. Upon further probing, Origo found out that the bill totaling 1.97 million forints for these three trips actually covered the expenses of two people.

Lázár was incensed. He wrote a snotty “reply to the article of origo.hu” and posted it on the webpage of the prime minister’s office. The letter included such sentences as: “I am glad that the independent Hungarian courts find it important to get acquainted with my traveling habits.” Or “Appreciating the unbiased, objective, and correct reporting and valuing the journalist’s work in the defense of the Hungarian budget, I decided to renounce the travel allowance that I am entitled to.” He specifically mentioned András Pethő’s name, adding that he would like to make his day with this gesture. One’s immediate reaction is: if Lázár was entitled to the travel allowance, why is he returning the money?

We still don’t know much about the nature of these trips, but it was reported in the media that the persons who accompanied Lázár were “interpreters.” That is curious because, according  his official biography, he speaks both German and English.

Today we found out a few more tidbits, at least about the trip to London. According to Zsolt Gréczy, the spokesman for the Demokratikus Koalíció who gave a press conference on the subject, Lázár stayed at the Crowne Hotel, the most expensive accommodations in London. Apparently, that is the favorite hotel of members of the Hungarian government. Lázár’s job, it seems, was to convince the British to allow a meeting of Viktor Orbán with David Cameron. In fact, Viktor Orbán hoped that Cameron would come to Budapest to demonstrate his support of the Hungarian prime minister. DK learned, however, that Lázár completely botched his negotiations in the Foreign Office and in the end Szijjártó had to be sent to London to straighten things out.

And a final note. The reporter for the official Hungarian telegraphic agency, MTI, was present at the press conference. In fact, he even addressed a question to Zsolt Gréczy. However, MTI chose not to report on the event. That means that the details DK unearthed will get to very few newspapers and online outlets because they all receive MTI news free of charge. I read about it in Népszavabecause one of its reporters was there. This would not be the first time that the MTI management decides not to publish reports that do not reflect well on the Orbán government. So much for transparency and truth.

The free Hungarian media is under renewed attack, but it seems that this time even pro-Fidesz journalists are ready to stand by their colleagues on the other side of the great divide in Hungarian politics. They seem to realize, as Benjamin Franklin famously said, that “We must, indeed, all hang together, or most assuredly we shall all hang separately.”

Mária Vásárhelyi on the “media octopus” in Hungary

Yesterday I talked about the state of the Hungarian media. In today’s Galamus, Zsófia Mihancsik, who is a very good journalist, suggested to her colleagues that it would be a good idea if they learned to read. But, as some of you suggested, the slanted reporting on certain “sensitive” topics might be the result not so much of careless reading or writing but of a willful distortion of the facts. This is definitely true about media under the direct or indirect control of the governing party.

So, I think it’s time to look around a little in the world of the Hungarian media. Here I’m relying heavily on Mária Vásárhelyi’s essay “The Workings of the Media Octopus–Brain and Money Laundering” that appeared in the Bálint Magyar-edited volume, The Hungarian Octopus.

According to Vásárhelyi, Viktor Orbán’s psyche was crushed in 1994 when he  managed to lead his party with a 40% chance of winning the election into almost total ruin with 7.7% of the votes. Before that fiasco Orbán was the darling of the press, but subsequently he became the pariah of the then still mostly liberal Hungarian media. He decided right then and there that the goal is not to be liked by the existing media; rather, a smart politician should strive for a loyal media he can easily influence. In Vásárhelyi’s estimate Fidesz had the lion’s share of responsibility for the 1996 media law that turned out to be neither liberal nor democratic.

Once Fidesz won the election in 1998 Viktor Orbán made a concerted effort to build a media empire with the use of private and public money. Billions of public money were spent on establishing Heti Válasz and on the “rescue” of the heavily indebted Magyar Nemzet. And right-wing oligarchs like Gábor Széles, Tamás Vitézy (Orbán’s uncle by marriage), Zoltán Spéder, István Töröcskei, and Lajos Simicska put large sums of their own money into media outlets that were anything but profitable. They were hopeful that their investments would serve them well one day when Viktor Orbán again returned to power.

Between 2002 and 2010 the preponderance of media outlets shifted to the right. Moreover, by 2008 the liberal media’s financial situation was dire. Companies strapped for funds cut their advertising budgets, and the liberal media outlets had no rich oligarchs who could ensure their continued existence during the hard times. Since 2010 the lopsidedness between right and left in the field of media has only become worse. According to Mária Vásárhelyi, “only those messages which the government party wants to deliver reach 80% of the country’s population.”

octopus

Studying the changes in the political orientation of radio stations is perhaps the most fruitful and most telling because it is here that the Media Council, made up entirely of Fidesz appointees, can directly influence the media. It is in charge of allocating radio frequencies. As the result, in the last five years the radio market became unrecognizable. Every time existing radio stations had to reapply for frequencies, the frequencies were given to someone else. The new stations were owned by companies or non-profits preferred by the government party, and in consequence government advertisements immediately poured in. Between 2010 and 2012 some 50 local and regional radio frequencies changed hands. Of these Mária Rádió (Catholic Church) got seven frequencies all over the country and Lánchíd Rádió (also close to the Catholic Church) got five. Európa Rádió, which is close to the Calvinist Church, by now can broadcast on three frequencies. Magyar Katolikus Rádió has two local and two regional frequencies. All these stations are considered to be non-profit and therefore they don’t pay for the use of the frequencies.

Zsolt Nyerges has built a veritable media empire: he is behind “the three most valuable radio frequencies in the country.” During the same time the liberal stations have been disappearing one by one. Radio Café, very popular among Budapest liberals, lost its frequency in 2011. So did another popular liberal station called Radio1. Of course, Klubrádió is the best known victim of Viktor Orbán’s ruthless suppression of media freedom. Klubrádió began broadcasting in 2001 and could be heard in a radius of 70-80 km around Budapest. By 2007 the station had acquired eleven frequencies and could be heard in and around 11 cities. Soon enough Klubrádió was the second most popular radio station in Budapest. Today, Klubrádió after years of litigation moved over to a free but weaker frequency that it already had won before the change of government in 2010. Out of its 11 provincial stations there is only one left, in Debrecen, and we can be pretty sure that as soon as its contract expires Klubrádió will no longer be able to broadcast there either.

As for the public radio and television stations, let’s just call them what they are: state radio and television stations as they were during socialist times. But then at least the communist leaders of Hungary didn’t pretend that these media outlets were in any way independent: the institution was called Hungarian State Television and Radio. They were at least honest. The only difference was that in those days state television and radio aired excellent programs, especially high quality theatrical productions and mini-series, all produced in-house. Now I understand the programming is terrible and only about 10% of the population even bothers to watch MTV, and most likely even fewer watch Duna TV. Their news is government propaganda: on MTV more than 70% of the news is about government politicians and the situation is even worse at Magyar Rádió.

These state radios and television stations have a budget of over 70 billion forints, a good portion of which ends up in the hands of Lajos Simicska. How? MTV and Duna TV no longer produce shows in-house but hire outside production companies. Thus, public money is being systematically siphoned through MTV and Duna TV to Fidesz oligarchs. The programs are usually of very low quality and complete flops.

Most Hungarians watch one of the two commercial stations: RTL Klub and TV2. Both are foreign owned but as Orbán said not long ago, “this will not be so for long.” And indeed, a couple of weeks ago TV2 was sold, allegedly to the director of the company. Surely, he is only a front man. An MSZP politician has been trying to find out who the real owner is. Everybody suspects the men behind the deal are Lajos Simicska and Zsolt Nyerges.

And finally, the print media is also dying, which is not surprising given the worldwide trend. But right-wing papers are doing a great deal better than liberal and socialist ones for the simple reason that public money is being funneled into them through advertisements by the government and by state-owned companies. Even free newspapers are being brought into the right-wing fold. There was a very popular free paper called Metro owned by a Swedish company. But Orbán obviously wasn’t satisfied with its content. So, the government severely limited the locations where Metro could be stacked up, free for the taking. Thus squeezed, the Swedish owner decided to sell. And who bought it? A certain Károly Fonyó, who is a business partner of Lajos Simicska. The paper is now called Metropol and, in case you’re wondering, is doing quite well financially.

Napi Gazdaság was sold to Századvég, the think tank that was established by László Kövér and Viktor Orbán when they were still students. As I mentioned earlier, Népszabadság was sold recently to somebody who might be a front man for Tamás Fellegi, former minister of national development who had financial interests in the world of the media before he embarked on a political career. The paper was owned by Ringier, a Swiss company that wanted to merge with the German Axel Springer, which owns a large number of provincial papers in Hungary. Although in many European countries the merger was approved with no strings attached, the Hungarian government set up an obstacle to the merger. The merger could be approved only if Ringier first sells its stake in Népszabadság.

Fidesz hasn’t been so active online. Most of the online newspapers are relatively independent. What keeps the party away from the Internet? Vásárhelyi suspects that it is too free a medium and that it doesn’t comport with Fidesz’s ideas of control. Surely, they don’t want to risk being attacked by hundreds and hundreds of commenters. Index, howeveris owned by Zoltán Spéder, a billionaire with Fidesz sympathies. After 2006 it was Index that led the attack on Ferenc Gyurcsány and the government. Vásárhelyi predicts that Index will turn openly right sometime before the election.

The scene is depressing. There is no way to turn things around without the departure of this government. And even then it will require very strong resolve on the part of the new government to stop the flow of public money to Fidesz media oligarchs. The task seems enormous to me.