November 18th, 2011

Hungary must not give up economic independence, says Fidesz deputy head

Hungary must not give up its core ambitions and can only sign an agreement for budget financing that will essentially not reduce the government’s economic control and independence, deputy head of the ruling Fidesz party Lajos Kosa said.

The agreement must allow the cabinet to continue its programmes for public debt management, family support, job creation and the modernisation of the pension system, Kosa told public television m1.

The Ministry for National Economy told MTI on Thursday afternoon that Hungary’s government was to hold negotiations on a new type of cooperation with the IMF in the course of scheduled consultations.

Kosa said “what the socialist governments have done in the past, to practically have the IMF write a complete government programme and then implement that without reservations – taking away 13th month pensions and 13th month salaries, introducing a whole bunch of austerity measures, intending to introduce a general property tax that would also apply to home owners – this will not happen because it goes against our principles.”

Asked whether planned deal was a precautionary loan agreement, Kosa said “no, what we are talking about is that cooperation with the IMF is a matter of economic policy consideration” if they do not harm our principles. Such high level of uncertainty has overcome Europe that it is advisable to rethink the tactical steps of economic policy, he added.

No matter how Hungary has extremely promising figures on economic growth in the first three quarters, no matter how everyone said the Hungarian budget deficit could be kept under 3 percent and even though Hungary has been systematically implementing its undertakings in line with the Szell Kalman Plan, “all of this was not enough to change the assessment of the forint.” Kosa said. This is why it’s necessary to resort to means that can manage this “nervous atmosphere,” he added.

Commenting on the fact that Economy Minister Gyorgy Matolcsy made critical statements about the IMF just three days ago, Kosa said if circumstances change, it is necessary to adapt to them.

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  • Wondering

    My question is what does Hungary do if the IMF doesn’t accede to Viktor’s demands? After shooting off his mouth, Viktor must really think Hungary needs the IMF or he wouldn’t be talking to them.

  • Viking

    400 HUF/Euro will be the result of ‘failed negotiations’?
    Especially if the “market” feel that this was just a tactical move by The Supreme Leader, and He likes to continue aggravating the “market” with the policy that have made Hungary to the *worst* performer on its currency related to the Euro the last year

    It seems like it is very much a game for The Supreme Leader, and now He got a respite of maybe 2-3 weeks, before the onslaught starts again, if no substantial info comes out of these ‘negotiations’

  • spectator

    This is not a question of independence, this is a question of common sense and solid knowledge of macroeconomics.

    The often said “unorthodox” method nothing else, but euphemism for the lack of consistent, long term thinking and professional expertise. Obviously, the present government simply has no idea, how the “orthodox” method would work – they never learned this either.

    • Leto

      It the “consistent, long term thinking and professional expertise” of your damned postcommie ilk is what got Hungary into this huge mess.

      “There is not much choice. There is not, because we have fucked it up. Not a little but a lot. No European country has done something as boneheaded as we have. It can be explained. We have obviously lied throughout the past one and a half-two years. It was perfectly clear that what we were saying was not true. We are beyond the country’s possibilities to such an extent that we could not conceive earlier that a joint government of the Hungarian Socialist Party and the liberals would ever do. And in the meantime, by the way, we did not do anything for four years. Nothing. You cannot mention any significant government measures that we can be proud of, apart from the fact that in the end we managed to get governance out of the shit. Nothing. If we have to give an account to the country of what we have done in four years, what are we going to say?”

      • Viking

        Leto says:
        November 21, 2011 at 3:04 pm

        It the “consistent, long term thinking and professional expertise” of your damned postcommie ilk is what got Hungary into this huge mess

        This was said in 2006, about the period 2002-2006, of which Gyurcsány was PM for 2004-2006

        Every one knows that the Hungarian State Debt started to grow already in the year 2000, after Bokros “The Terrible” had taken it down in 1995-1998
        This problem is shared by all administrations from 2000

        Which suggestions did Fidesz motion in the Parliament 2002-2010 to take down the State Debt?
        Was it not like that, Fidesz actively opposed every move to reduce the State Debt?

        And, more importantly, why is the State Debt still at 82%, even after having Fidesz in power for 18 months?

      • spectator

        Leto,
        – Your leader IS a postcommie
        – Quite few member of his government ARE postcommies
        – Most of his friends and associates ARE postcommies
        – Even members of his family ARE postcommies

        – Do you know at all, what the hell are you talking about?

        Furthermore: even if you and your beloved leader succeed to make fool of the people once again – I hardly think so, by the way, but still – blaming scapegoats for your inadequacy, would help in any way to the country?

        Just how, – spreading lies, would pay the bills, what do you propose?

        People start to see trough the lies, and turns away from the leader, who allows his hand kissed by some elderly people (yes, I saved two different photos of two different occasions, when there was a photographer present)

        I think, it’s time to discard your favorite adjective, because pretty soon it become bloody uncomfortable, when comes to people like Mr.Martonyi, Mr.Matolcsy, Mr.Kövér, just to name a few. And I have a much longer list, in case, you’re interested…

        • Leto

          “Do you know at all, what the hell are you talking about?”

          Yes, I know.

          BTW, this man kissing Gyurcsány’s hand doesn’t seem to be elderly to me:
          http://www.gondola.hu/cikkek/47713

          • spectator

            - So, it would make Viktor the winner, is that’s what you saying?
            (You know, Orban-Gyurcsany hand-kissing contest: 2-1)

          • Leto

            Gyurcsány is a (self-proclaimed) “democratic” male leader who allowed his hand to be kissed by this male fan of his age. He seems to be enjoying that hand kiss very much, don’t you think so, you postcommie moron?

          • Viking

            Leto says:
            November 23, 2011 at 12:16 pm

            Gyurcsány is a (self-proclaimed) “democratic” male leader who allowed his hand to be kissed by this male fan of his age

            Now we have the real interesting debate here!

            So where is the proof for that statement “allowed his hand to be kissed by this male fan of his age”?

            Of the picture supplied it looks like Gyurcsány is walking through a crowd, with his bodyguards in front and back, shaking hands with his (presumably) admirers
            One of them takes the hand of Gyurcsány and does that what ‘I Kill’ has a problem with

            So, given the fact that Gyurcsány is moving, given the fact that there is no evidence here that Gyurcsány invited this person to do those things, where is Gyurcsány’s responsibility here for the action of that man?

            When I want my subordinates to kiss my hand, I hold out an open hand, so they cannot miss the ring (where to put the kiss), also I do not expect them to grab my hand, just lightly touch it
            You know, me and the Pope have good training in this procedure, so please ask if you do have a problem with “getting it right”

            As you see Gyurcsány is not even looking at the person molesting his hand with his lips, which any of my subordinates would take as a severe sign of disrespect from my side, or a sign that their buts are to be royally kicked, literally

  • Leto

    It the “consistent, long term thinking and professional expertise” of your ilk is what got Hungary into this huge mess.

    Quote:
    “There is not much choice. There is not, because we have fucked it up. Not a little but a lot. No European country has done something as boneheaded as we have. It can be explained. We have obviously lied throughout the past one and a half-two years. It was perfectly clear that what we were saying was not true. We are beyond the country’s possibilities to such an extent that we could not conceive earlier that a joint government of the Hungarian Socialist Party and the liberals would ever do. And in the meantime, by the way, we did not do anything for four years. Nothing. You cannot mention any significant government measures that we can be proud of, apart from the fact that in the end we managed to get governance out of the shit. Nothing. If we have to give an account to the country of what we have done in four years, what are we going to say?”

    • Viking

      Leto says:
      November 21, 2011 at 3:06 pm

      It the “consistent, long term thinking and professional expertise” of your ilk is what got Hungary into this huge mess

      This was said in 2006, about the period 2002-2006, of which Gyurcsány was PM for 2004-2006

      Every one knows that the Hungarian State Debt started to grow already in the year 2000, after Bokros “The Terrible” had taken it down in 1995-1998
      This problem is shared by all administrations from 2000

      Which suggestions did Fidesz motion in the Parliament 2002-2010 to take down the State Debt?
      Was it not like that, Fidesz actively opposed every move to reduce the State Debt?

      And, more importantly, why is the State Debt still at 82%, even after having Fidesz in power for 18 months?

  • Leto

    @Erik:

    Please do have these rather annoying bugs fixed! Posts just disappear and you don’t know if it went through or not. The above post was the third attempt and the site didn’t give any feedback..

  • Molehandles

    Viking: What is this all about? I am too cold at the moment to think, let alone write!
    It looks like Fidesz idiots are continuing where they left off some time ago?!
    “Economy Minister György Matolcsy filed a bill on Monday which calls for the setting up of a state firm to buy up the homes of families who cannot meet mortgage repayments. The programme, aimed at the neediest citizens, will apply only to homes valued at less than HUF 15 million (EUR 48,151) in the capital or HUF 10 million (EUR 32,101) in the provinces on which the outstanding debt is between 25 and 80 per cent of the value.
    A National Property Management Company (NET) will hold the properties and charge rent to the occupants, who will have the right to buy them back at either the original price minus repayments or the price paid by NET plus interest. Earlier reports suggest that the state will pay between 35 and 55 per cent of the market value of the properties.” (Source BT)

    • Viking

      Yes, I saw that some time ago
      This will use tax money to bail out people with bad loans
      The rent charged will most likely not cover the cost for the State to take it over and run it
      What happens when the original owners move, maybe could not pay the rent?
      Who will the State sell it to?
      I know I would be interested in buying it cheap and selling it the next day…

      But, unlike ‘I Kill’ I do not know any of those Fidesz-
      politicians involved, so I will mostly miss out of that opportunity

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