June 26th, 2012

Government scraps plan to end state financing of political parties

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A proposal brought forward by Prime Minister Viktor Orbán to end state funding for parties from next year has apparently been dropped by the governing Fidesz after the 2013 budget plan has earmarked the same amount of funds for that purpose as in previous years.

At a party conference last month, Orbán informally suggested that the state should stop funding parties in 2013-2014 as part of an effort to cut back public spending.

The proposal was heavily criticized by opposition parties, who said lack of public funding will prompt parties to seek support from business quarters and will inevitable become financially dependent on some powerful oligarchs.

Hungarian parties will get a total HUF 3.8 billion in public funding next year, almost half of which will go to Fidesz. [napi.hu]

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  • Cnut

    I’ll give credit where credit is due. This is a welcome change in Fidesz policy. Orbán changed his mind and backed down on one of the most stupid and outrageous ideas he has had. Well done, Viktor.

    One down, 999 to go.

  • Leto. مؤدّب

    Too bad. I’m looking forward to another idea how they’d want to destroy MSZP.

    • Cnut

      Yeah, this was such a cunning idea. These guys are political masterminds.

      Even Lázár was publicly against it.

      I’m sure MSZP are quaking in their boots at the thought that Fidesz could suddenly become less stupid and incompetent overnight.

      All MSZP needs to do to win is shut up and say nothing. Unfortunately they probably aren’t capable of it.

  • Democrat

    Just because the funds are in the budget does not mean the plan is dropped. Two possibilities: a)they have been left in by mistake, b)when savings are needed they will be cut and our Dear Leader can take credit for the wonderful idea AND the budget savings, getting applause twice for a stupid idea.

  • Tommy

    “The proposal was heavily criticized by opposition parties, who said lack of public funding will prompt parties to seek support from business quarters and will inevitable become financially dependent on some powerful oligarchs.”

    Who do they really think they are kidding?!?

    Hungarian politicians and mid- and large-sized Hungarian business have been in bed together since the Change. It is a public secret that most large Hungarian companies have very good years and bad years that incidentally follow the rise and fall of their party affiliation.

    A clear sign that the politicians in both MSZP and Fidesz do not want to bite the hand that feeds them is all their talk about fighting the black economy and all their doing nothing about fighting the black economy.

    If the politicians were not already dependent on support from business quarters they would have attacked the practise of reporting employees at minimum salary plus 10% and paying the rest in a white envelope at the end of the month. Instead they increase the tax burden on foreign owned companies and small Hungarian companies as well as the public in general; those that are the least able to get around the excessive taxation in the first place.

    The salary scam is probably the practice most damaging to the Hungarian economy – because those that do not (foreign companies that are closely watched by the tax authorities) and those that cannot (Hungarian companies too small to include large fake invoices in their books as well as the salary takers) are funding the party every time a new austerity measure is introduced.

    Being out of office, MSZP is currently going through a dry spell as “their” companies have bad years, so cutting “official” support to all the parties will hurt MSZP more than Fidesz…that is the main motivation behind the proposal!

    • Leto. مؤدّب

      “cutting “official” support to all the parties will hurt MSZP more than Fidesz”

      Then it’s a real pity, an absolute shame, a complete disgrace that the government scrapped the plan.
      I’d want to see another proposal asap for doing in MSZP.

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