February 3, 2017 afternoon issue. Opposition DK leader Ferenc Gyurcsány assesses last year. Truck marking Reformation anniversary arrives in Sopron

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1 Editors: February 3, 2017 Photo of the day Upcoming events Opposition DK leader Ferenc Gyurcsány assesses last year Truck marking Reformation anniversary arrives in Sopron MTI/Balázs Mohai State secretary gives presser on social workers wages Italy bus crash victims remains arrive in Hungary Parliament building in winter fog TOP STORY ORBÁN: ITALY GOVT COULD HELP STOP MIGRANTS The wave of illegal immigrants could be stopped outside the European Union if Italy changed its position on migration, Hungarian Prime Minister Viktor Orbán said in Malta. Speaking ahead of an informal EU summit, Orbán said the new Italian government could join the club of countries which think that the situation is unacceptable and migrants must be stopped outside the EU. He argued that with Italy s cooperation migrants could be returned to Libya rather than allowed to enter Europe. He warned against allowing migrants to enter first and then work to solve their problems and suggested that assistance should be provided where the problems arise rather than allowing them into our territory. On another subject, Orbán voiced surprise at neurotic European reactions to the US entry ban on citizens of seven Islamic countries. He noted that the US was an independent country and as such it had the sovereign right to define its own border, foreign and migration policies. What we think about that does not matter; it is not a European business. We must focus on ourselves, tackle our own problems rather than pass judgement over the United States, he insisted. The one-day Malta summit has the migration crisis and global political changes on its agenda.

2 SZIJJÁRTÓ ASSESSES PUTIN VISIT Russian President Vladimir Putin s talks in Budapest were conducted in a constructive, pragmatic atmosphere based on mutual respect, Hungary s foreign minister told public media on Friday morning. Peter Szijjártó told Kossuth Radio that following Thursday s talks the two sides would start negotiations on Russian gas supplies to Hungary after He added that negotiating conditions for years ahead ensures a good position for the buyer. Concerning European sanctions against Russia, Szijjártó said that those measures have failed in both political and economic terms and called for eliminating them. On the subject of Ukraine, he said that Hungary s interest was in a stable and strong country, but added that Hungary expects that Ukraine s Hungarian minority is granted all the rights according to European standards. PUTIN VISIT ELICITS MIXED REACTIONS FROM PARTIES Russian President Vladimir Putin s visit to Hungary on Thursday has provoked mixed reactions from Hungarian politicians attending a panel discussion on Russia s efforts to gain influence in Hungary and Europe. Lawmaker Gergely Gulyás, deputy leader of ruling Fidesz, said the two countries seek to maintain normal, consolidated relations, which involves regular top-level meetings. He said that Hungary s involvement in Euro- Atlantic integration does not rule out balanced ties with Russia. Gulyás called Russia vital in guaranteeing Hungary s safe energy supply. He added that the economic sanctions proved abortive and ran counter to Europe s interest of developing balanced ties with Russia. Péter Ungár, foreign policy spokesman of the green LMP, called the policy of sanctions a response to Russia s actions. There is hardly any step more detrimental to Hungary s interests than Russia s move to enter the territory of one of Hungary s neighbours, he said. István Szent-Iványi, foreign policy expert of the Liberal Party, said the Russian regime is oppressive and despotic, which alone makes it problematic to maintain ties with it. He accused Russia of efforts to reach a new Yalta Treaty, which would enable it to do what it wants in central and eastern Europe, he said. For Putin, it is a major success that he was welcomed in a NATO and EU member state, and that his hosts fully agreed with him, Szent-Iványi said. GOVT PUBLISHES OLAF REPORT Findings of an investigation by the European Union anti-fraud office (OLAF) clearly show that the previous, leftist governments and Budapest s earlier management are to blame for the corruption scandal around the construction of the city s fourth metro line, state secretary Nándor Csepreghy said after the government published the OLAF report on its website. Csepreghy noted that publication of the English-language document had been delayed by data protection considerations. The state secretary called the cases of alleged corruption identified in the report the largest corruption scandal of the past 13 years due to which the country will probably have to repay a total 59 billion forints (EUR 191m) to the European Union, which the community had contributed to the project. The M4 project, completed in 2014, cost a total 452 billion forints, of which 272 billion is suspected to have been used illegally, while another 166 billion forints were stolen, he said. Csepreghy insisted that all but one of the suspicious contracts involved in the project had been signed before 2010, and concluded that the most corrupt project of all time is linked to leftist governments. The government is seeking ways to reclaim the amount to cover the possible European fine from affected politicians and companies, Csepreghy said. The opposition Socialists welcomed publication of the report and voiced hope that the document is authentic. In a statement, the party called for an unbiased and impartial investigation. Those proven guilty should go to jail 2

3 and repay the money, the party s statement said. Radical nationalist Jobbik said that perpetrators of the alleged graft should be identified. Municipal Jobbik representative Marcell Gergely Tokody said it should be ascertained who signed the contracts with the companies in question, and called it outrageous that nobody has been indicted yet. IMMIGRATION OFFICE RECEIVES NEARLY 30,000 ASYLUM APPLICATIONS IN 2016 Last year nearly 30,000 foreign nationals submitted applications for asylum to Hungary s immigration authority, the head of the organisation said. Zsuzsanna Végh said that the number was well below 177,000 such applications in 2015, but warned that we should not entertain the illusion that the problems are solved. In 2016, 29,432 people were registered as asylum applicants and 18,236 as illegal migrants, Végh said. She noted that a year earlier, when the migration crisis broke out, the number of illegal entrants in Hungary had reached 400,000. Concerning the whole of the European Union, Végh said that the number of illegal entrants had gone down from 1.8 million in 2015 to 500,000 in The number of asylum applications has not dropped because member states registered 2015 arrivals last year. In Germany, for example, 745,000 applications were submitted in 2016, two thirds of them by people who had arrived in 2015 or earlier, she argued. As to the ethnicity of asylum seekers in Hungary, she said that a large part of them (11,052) were Afghans, followed by Syrians (4,979), Pakistanis (3,873), Iraqis (3,452) and Iranians (1,286). Végh insisted that a large part of the asylum-seekers submit applications in disregard of the regulations and leave the country before their case is evaluated. Last year, the immigration authority rejected 4,675 applications, and granted asylum to 432 applicants. Fully 4,580 foreign nationals were expelled from the country and 3,694 others were detained. She added that 8,771 entrants, mostly families, children without parents, or elderly people had been provided accommodation at reception centres. Hungary had spent a total 6.7 billion forints (EUR 21.5m) on refugee services in 2016, up from 5.4 billion forints the previous year, Végh said. BALOG: US MAY CHANGE HUNGARY POLICY The new Washington administration trusts that the United States is entering a completely new epoch, which may bring about changes in its policy towards Hungary, Hungarian Human Resources Minister Zoltán Balog told MTI by phone from Washington. Balog met Rex Tillerson, the new US secretary of state, for brief, informal talks, and expressed hope that US- Hungary ties would also enter a new era. Tillerson supported the idea, the minister added. Before the talks, Balog attended the annual National Prayer Breakfast of the US Congress. Concerning the event, the minister said that the government was planning to organise a similar prayer breakfast in autumn this year with representatives of both the government and the opposition, as well as foreign guests. On another subject, Balog said he had met Republican Representative Martha Roby, and discussed plans for the next demographic world forum and world congress of families to be held in Budapest. REMAINS OF ITALY BUS CRASH VICTIMS TO ARRIVE IN HUNGARY ON SAT The remains of 16 Hungarians who died in a recent bus crash near Verona will be returned to Hungary on Saturday, the foreign minister said. Péter Szijjártó said that the metal coffins containing the bodies were collected from five hospitals in Italy, which caused delays in the procedure. On arrival in Budapest, the coffins will be taken to the Honvéd military hospital and handed over to the victims families on Sunday, the minister said. Szijjártó noted that two survivors, hospitalised in Italy, were still in 3

4 critical condition, and added that their recovery may take months. The bus carrying students and teachers of the Szinyei Merse Pál Secondary School in Budapest, as well as family members, crashed and caught fire on the Venice-Verona motorway just before midnight on Jan. 20. HUNGARY RETAIL SALES UP 4.5% IN 2016 Retail sales in Hungary climbed by 4.5% last year as against 5.8% the year before, preliminary data released by the Central Statistical Office on Friday show. In December 2016, retail sales climbed by 2.6% from same month a year earlier. They rose 3.2% year-onyear when adjusted for calendar year effects. Analyst Gergely Suppan of Takarékbank said that December growth was smaller than expected, adding, however that this was probably just temporary and can be attributed to cold weather. Suppan said he expected retail sales growth to reach 5% in 2017 as real wage growth is set to accelerate further due to the higher minimum wage and labour shortages. Péter Virovácz of ING Bank noted that the slowdown in December could be due to lower sales in the non-food segment but it is necessary to wait until all data is available. The analyst offered two explanations, consumers might be spending more on services than products or they might be saving more to prepare for purchasing new homes. ALMOST 30,000 HUNGARIANS PROHIBITED FROM MANAGEMENT POSITIONS The number of Hungarians prohibited from filling management positions came close to 30,000 in 2016, 15% of whom worked in the construction sector, daily Magyar Idők said on Friday. About 4,000 individuals are prohibited from filling management positions in the construction sector, twice as many as in the previous year, Richard Pertics, of company information provider Opten, told the paper. In the entire corporate sector, more than 13,000 people were placed on a similar blacklist last year, bringing their total number to almost 30,000. Opten said the number of individuals against whom these procedures were initiated exceeded 12,000 in 2015 although there used to be just 1,000-2,000 such procedures a year earlier. The company court can prohibit people from filling management positions for five years in the case of unpaid creditor receivables and penalties established by nonappealable resolutions. THYSSENKRUPP TO BUILD NEW PLANT IN E HUNGARY Germany s ThyssenKrupp Springs and Stabilizers will build a new plant through investment of 35 million euros in Debrecen (E Hungary), creating 250 new jobs, managing director of the Hungarian unit ThyssenKrupp Presta Hungary Marc De Bastos Eckstein said. Foreign Minister Péter Szijjártó said the Hungarian government is supporting the investment with a 3.8 billion forint (EUR 12.3m) grant. The new plant will make state-of-theart automotive parts for major car manufacturers, he added. 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) 4

5 ThyssenKrupp executive manager Matthias Koll said production at the plant could start in Annual production capacity will be 6.5 million coil springs and stabilizers. 5