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Editors: hungarymatters@mtva.hu ¬ www.hungarymatters.hu
October 7, 2016
morning issue
Photo of the day
Upcoming events
Prime minister holds talks
with Slovak counterpart in Bratislava
Parlt speaker attends informal
meeting of EU counterparts
in Bratislava
MTI/Péter Komka
Snow-covered trees in Kékestető in N Hungary
Jobbik leader’s presser on party’s
national consultation in Gyöngyös (N)
KSH releases industry, foreign trade
data for August 2016
TOP STORY
ORBÁN URGES CEE-CHINA STRATEGIC PARTNERSHIP
The time has come for central Europe and China to elevate their relations to the level
of a strategic partnership, the prime minister told a China-CEE conference.
Viktor Orbán said the partnership deal may be signed next year. Central Europe and China are interested in mutual success,
he said. “Mankind cannot be successful unless its largest country is successful.” “Central Europe is a great hope for the future”
as “Europe’s fastest developing region,” he added. Hungary is committed to the Silk Road project, and the link between
central Europe and China combined with business cooperation will ensure the flow of goods, and the Budapest-Belgrade
railway link is being built accordingly, he said. Hungary will not accept “any restriction” on cooperation between China and
central Europe. “What is good for China and central Europe will serve the interests of the whole of the European Union.”
“We need to see eye to eye without asking the other side to change themselves”. This is different from “the traditional
western” approach whereby “the West represents a superior ideal and expects other parts of the world to adopt international
doctrines reflecting that.” “Hungary does not support exporting political or economic systems,” Orbán said.
Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA)
with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed
or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use,
educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and
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October 7, 2016
morning issue
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SZIJJÁRTÓ: CENTRAL
EUROPE’S CHINESE TIES
SERVE WIDER EUROPEAN
INTERESTS
Europe must be open to outside
partners and allies and not be inwardlooking,
Foreign Minister Péter Szijjártó
said at a conference on Chinese ties.
Central European countries have
always known the rational choice is
to build up cooperation with China
and the Asian region as this also serves
Europe’s interests, Szijjártó said.
In these “exciting times that we are
living in”, both the EU and the western
Balkans face historic challenges created
by migration, he said. Further, the EU’s
economic woes are exacerbated by
Britain’s exit from the bloc, he said. The
war in Ukraine, energy security issues
and EU-Russian relations present other
challenges, he added.
Global trade demands that free
trade deals are signed and regional
cooperation forged, and the EU cannot
afford to be left out, as this would hurt
its competitiveness, Szijjártó said.
Recently, the EU conceded that central
European cooperation with China is
useful, he added.
On the subject of Brexit, Szijjártó
said the UK’s competitiveness had
been affected by its decision to leave
the EU, since many non-EU investors
were looking for partners within the
bloc. “Our western European friends
are obviously not happy that China
is forging closer ties with central
Europe,” he said. Yet Chinese financing
for infrastructure investments in
central Europe is a pan-European
interest, especially given dwindling
EU funds for such purposes.
Bilateral trade turnover grew 2.7
times last year, whereas the first
seven months of 2016 had seen an
80% increase, Prime Minister Viktor
Orbán said, noting that Hungary had
submitted its membership request to
the Asian Infrastructure Investment
Bank. Hungary is ready to host a central
Europe-China summit in the second
half of 2017, he said.
Senior Communist Party of China
(CPC) official Liu Yunshan noted the
CPC and the Chinese government’s
appreciation for central Europe
cooperation. Mutual respect and
political confidence have been
instrumental in building these ties,
he added. The Chinese politician
called coordination of development
strategies crucial, adding that
economic ties should focus on deals
yielding mutual benefits.
Later in the day Liu held talks
with House Speaker László Kövér.
Parliament’s press office quoted Kövér
as saying that Hungary is committed
to further developing friendly
ties with China. He noted that ties
between the Hungarian parliament
and China’s National People’s
Congress and the Chinese People’s
Political Consultative Conference are
also becoming stronger.
Liu thanked Hungary for being the
first European country to join China’s
One Belt, One Road initiative aimed at
establishing a link between East Asia,
the Middle East, Africa and Europe.
He presented to Kövér an invitation
from Zhang Dejiang, Chairman of the
Standing Committee of the National
People’s Congress.
OFFICIAL: REJECTION
OF EU QUOTAS BRINGS NEW
OBLIGATIONS FOR GOVT
The result of last Sunday’s referendum,
in which more than 3 million
people rejected European Union
migrant quotas, has established
new obligations for the Hungarian
government both at home and
abroad, a government official said.
As part of fulfilling its obligations
at home, the government will
submit a constitutional amendment
proposal to parliament to reflect the
outcome of the vote, Csaba Dömötör,
parliamentary cabinet state secretary,
said at a press conference. To meet
the government’s international
obligations, Prime Minister Viktor
Orbán has sent a letter to European
Commission President Jean-
Claude Juncker notifying him of the
referendum’s result, Dömötör added.
On Friday, Orbán is scheduled to
discuss the result with Robert Fico,
the prime minister of EU presidencyholder
Slovakia.
Dömötör said the referendum
heralded the start of a new process
rather than the final act, arguing that
migration pressure on Europe was
unlikely to ease anytime soon and that
Brussels had not withdrawn its migrant
quota plan, in spite of Hungary’s
Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA)
with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed
or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use,
educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and
are not aimed at financial gain, even indirectly, and the source name are indicated at all times.
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October 7, 2016
morning issue
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referendum outcome. The state
secretary added that the quota scheme
could soon also end up on the agenda
of the European Parliament, with a
parliamentary hearing on the plan set
to be held as soon as next week.
Dömötör insisted that the Hungarian
government would use “any method it
can” to get the EC to withdraw its prior
decisions regarding the resettlement
of migrants across the bloc.
Asked whether there were any
polls or analyses released before the
referendum that had been “hidden”
from Orbán, Dömötör said all members
of government had had access to every
poll that was released.
Meanwhile, commenting on a
recent report by the daily Magyar
Idők that some SIM cards purchased by
Hungarian criminal organisations may
have ended up with terrorists who had
collaborated in the Brussels and Paris
attacks last year, Dömötör said that the
national security cabinet would discuss
the reports in greater detail. The
paper said the criminals had bought
around 200,000 SIMs from Magyar
Telekom over the course of several
months using the personal details
of a homeless person. Dömötör said
the national security cabinet would
investigate whether the rechargeable
SIM card concept had any “loopholes”
from a security standpoint that could
have been exploited by the terrorists.
Commenting on a statement
from Hungarian Civil Liberties Union
(TASZ) saying that it was the prime
minister who had ordered an audit
of the Norwegian NGO Fund by the
Government Control Office (Kehi) two
years ago, the state secretary said that
only the prime minister or the Prime
Minister’s Office were authorised to
request such Kehi audits.
Citing the independence of the
National Bank of Hungary, Dömötör
declined to comment on reports that
central bank governor György Matolcsy
has been living in an apartment owned
by head of the Banking Association
and Unicredit Hungary chief Mihály
Patai in the Buda Castle district.
HUNGARIAN-BAVARIAN
INTER-GOVT CTTEE HAILS
ECONOMIC TIES
Economic ties between Hungary and
Bavaria are developing well and Bavaria
has a major impact on Hungary’s
economic performance, Foreign
Minister Peter Szijjártó said at the 19th
meeting of the Hungarian-Bavarian
Intergovernmental Joint Committee
in Budapest. A third of Hungary-
Germany trade is with Bavaria, which
takes a 36% share of Hungarian exports
to Germany and produces a third of
Germany’s investments in Hungary,
Szijjártó noted. The car industry, the
backbone of Hungary’s economy,
accounts for 72% of the latter, he said.
Beate Merk, Minister of European
Affairs and Regional Relationships
at the Bavarian Prime Minister’s
office, said they are looking forward
to Hungarian Prime Minister Viktor
Orbán’s visit in a few days’ time.
Szijjártó said Germany is Hungary’s
most important economic, trade and
investment partner. The Hungarian
government has three strategic
partners from Bavaria: Audi, Siemens
and Knorr-Bremse, and each of these
companies plays a serious role in
Hungary’s economy, he added.
Bavarian investments in Hungary
and the involvement of Hungarian
companies as suppliers result in
state-of-the-art technology being
brought to Hungary, enabling it to be
among the first to change over to new
industrial technologies. He added that
Hungary’s investment and legislative
environment also helps Bavarian
investments. From January, firms that
promote labour mobility and expand
their research, development and
innovation activities will be eligible
for tax allowances, Szijjártó added.
He said illegal migration carried
a high economic risk for the whole
of Europe because Schengen
could “tumble” if external borders
are not protected. Its survival is in
the interest of both Hungary and
Germany, he added.
The end of Schengen would
result in the loss of European
economic competitiveness, he said.
He underlined Hungary’s position
that the first step to resolving the
migration crisis was to protect the
external borders. Ever since Hungary
built a fence on its southern border,
the relevant legal regulations have
been enacted and the Visegrad
countries have provided help,
Hungary can assure Bavaria that
illegal migrants will not arrive there
from Hungary, the minister said.
Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA)
with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed
or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use,
educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and
are not aimed at financial gain, even indirectly, and the source name are indicated at all times.
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October 7, 2016
morning issue
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Merk said she shared Szijjártó’s
views concerning migration in
many respects. She added that she,
too, believed that Europe’s external
borders must be protected and it is
necessary to know who is arriving and
what they want. When humanitarian
help is needed, it must be given, she
said. But people arriving in Germany
for economic reasons should not be
allowed to stay and they should be led
back to their homes, she said.
Had the Balkan route not been
closed, Germany would be in the same
position now as it was a year ago, she
added. It is necessary to state that
countries do not have an unlimited
capacity to integrate and receive
migrants, she said.
BUDAPEST COURT TURNS
TO TOP COURT OVER
KISHANTOS LAND LEASE
CASE
A Budapest court handling a
lawsuit involving the lease of land
used earlier as an organic farm to a
private company has turned to the
Constitutional Court over the matter,
suspending the case until the top court
completes a review of several laws
governing land lease applications.
The lawsuit in question is the Rural
Development Centre of Kishantos, an
organic farm in central Hungary versus
the National Land Management Fund
(NFA). The centre wants the court to
declare that the land lease applications
opened by NFA in 2012 and the
bidding process were unlawful.
In a ruling issued on Wednesday,
the Municipal Court of Budapest
requested that the Constitutional
Court declare certain clauses of
the national land fund law and the
government decree regulating the
use of lands managed by the fund
unconstitutional. The Budapest
court also appealed to the top court
to declare that these clauses violate
various international treaties and to
annul them with retroactive effect.
The municipal court found that the
clauses it referred to the top court were
in breach of the principles of the rule of
law and legal safety. It said the national
land fund law did not prescribe any
objective or transparent criteria
regarding the evaluation of land lease
applications.
The court also ruled that the clauses
in question were unconstitutional
because laws governing the
acquisition and use of farmland should
be two-thirds laws while the laws in
question were not.
Further, the laws also violate of the
UN anti-corruption convention, the
court said. It said the sale or lease
of state land also concerns public
funds, but the laws in question do
not present any objective criteria in
terms of the land lease application
process that could later serve as basis
for determining whether the bidding
process was conducted lawfully.
Disputes have been ongoing
over the land leases in Kishantos
since late 2013. In April 2014 the
new leaseholders started to plough
up the fields at the local farms. The
organic farmers of the Germanbacked
Kishantos Rural Development
Centre, however, said that the
newcomers were not “legally in
possession” of the area, as there were
several legal disputes over rights to
the land still under way.
Earlier this year, the Kuria, Hungary’s
supreme court, upheld a ruling by a
lower court finding the state at fault for
leasing the plot to Mezővidék, a private
company. The court said Mezővidék
had not conducted any farming
activities and was ineligible to hold
the land under the tender’s criteria.
The Kishantos Rural Development
Centre was set up under an agreement
between the Hungarian and German
governments 16 years ago. It operated
on 452 hectares of state-owned land
and produced the highest-grade
organic seeds, as well as offering
courses to farmers and carrying out
agricultural research.
HUNGARY TO CONTRIBUTE
TO ENSURING WATER
SUPPLIES IN N SYRIA “SAFE
AREA”
Hungary will contribute to securing
water supplies in a “safe zone”
planned to be established under a
Turkish-led operation in northern
Syria, the deputy prime minister said
after talks in Ankara. Zsolt Semjén
held talks with Mehmet Ozhaseki,
Turkey’s minister for environment
and urban planning. Semjén told MTI
that he had offered to share Hungary’s
expertise in water management
Hungary Matters is an English-language newsletter produced and distributed by the Media Service Support and Asset Management Fund (MTVA)
with content provided by Duna Media Service Provider exercises copyright over all content. No part of this publication may be copied, reproduced, redistributed
or transmitted without prior written permission from the publisher, with the exception of copies made by individuals for private use,
educational purposes or scholarly research, provided that such transmissions do not exceed the extent justified by the purpose and
are not aimed at financial gain, even indirectly, and the source name are indicated at all times.
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All rights reserved. Enquiries should be made to the English Help Desk at +361 441 9340
For MTI’s real time coverage please visit http://english.mti.hu, http://econews.hu

October 7, 2016
morning issue
AM
technologies, especially in purifying
waste water to supply drinking water.
He also said that migrants should not
be allowed to enter Europe but instead
should be offered shelter and care
outside Europe. The system for European
asylum requests should also be set up in
a way that the requests are submitted
from outside Europe, he added.
Semjén also met Tugrul Turkes,
deputy prime minister in charge of
the Turkish diaspora. Semjén said
Turkes expressed special interest in
the operation of the Kőrösi Csoma
Sándor Programme and the Bethlen
Gábor Foundation, which promise
close cooperation between the two
countries in this field.
Semjén met Forestry Minister
Veysel Eroglu and discussed Turkish
participation in the hunting expo
in Hungary in 2021, and the issues
of sustainable hunting and game
protection.
Semjén is also scheduled to meet
Deputy Prime Minister Veysi Kaynak,
deputy house speaker Mehmet Akif
Hamzabeci and co-chair of the Turkish
Hungarian Friendship Division Ismail
Aydin.
ORBÁN INFORMS JUNCKER
ABOUT REFERENDUM
RESULT
Prime Minister Viktor Orbán has written
to Jean-Claude Juncker, president of
the European Commission, about
the outcome of Hungary’s Oct. 2
referendum on EU migrant quotas.
According to “the will of the vast
majority of participants” in the
referendum, the government has
decided to propose amending the
constitution, Orbán wrote, adding
that the proposed amendment would
fully comply with European law and
Hungary’s international commitments.
HUNGARY COMMEMORATES
1849 MARTYRS
Hungary’s flag was hoisted then
lowered to half-mast in front of
Parliament in a state ceremony in
the morning to mark a national
day of mourning in memory of
martyred leaders of the 1848-49
freedom fight.
The ceremony was attended by
President János Áder, diplomats,
representatives of state agencies and
political parties.
On October 6, 1849, thirteen
officers of the Hungarian military
were executed in Arad, now
Romania. On the same day, count
Lajos Batthyány, prime minister of
the first Hungarian government,
was executed in Pest, in Austria’s
retaliation for the revolution and war
of independence.
Publisher in charge of production: Miklós Vaszily, Director General of Media Service Support and Asset Management Fund (MTVA)
Publisher in charge of content: L. Ferenc Gazsó, Duna Mediaszolgáltató Nonprofit Zrt. MTI director
Editor: Tamás Toót-Holló (Duna)
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