Tag Archives: Péter Harrach

Viktor Orbán’s lost battle: Sunday store closings

A few days ago I recalled an interview with a couple of talking heads who complained about the pettiness of the political issues the opposition was wasting its time on, like the closing of larger retail stores on Sunday. Why have a political debate about such a ridiculous topic? Well, the question of whether large supermarkets and big box stores should be open or closed turned out to be a much larger issue than these people thought. After thirteen months of wrangling and scheming, the Orbán government threw in the towel. The 2015 law that forbade these stores to be open on Sunday will most likely be repealed tomorrow.

The news spread rapidly. Libération’s Budapest correspondence, Florence La Bruere, published a detailed article on the Orbán government’s decision to reintroduce Sunday closings 25 years after the change of regime. In the article she quotes a woman who told her that “under socialism, everything was closed on weekends. After the fall of communism, stores could be open on Sundays and we really enjoyed that. It was a symbol of freedom.” It was this feeling of freedom that was taken away from Hungarians, who overwhelmingly opposed the new law.

Ever since November 2014 a tug-of-war has been waged between the government, which stubbornly insisted on defending a bad decision, and the people this government allegedly represents. Numerous attempts were made to force the Orbán administration to allow a referendum on the question, all to no avail. At least until now, when the highest court of the land, the Kúria, overturning the decision of both the National Election Office and the National Election Commission, allowed the socialists to begin a drive to collect the necessary number of signatures. The government’s reaction was swift. Fearing defeat at the polls, they opted to repeal the law that Fidesz-KDNP had enacted in November 2014.

Because of lack of common sense Closed Opening: Uncertain

Because of lack of common sense
Closed
Opening: Uncertain

From the beginning there was an ongoing debate about why Viktor Orbán agreed to the demand of KDNP, the Christian Democratic People’s Party. KDNP is a party that doesn’t really exist. But its phony parliamentary delegation allows the right wing to be over-represented on committees. I suggested that the leaders of this party, which normally follows Viktor Orbán without question, decided to make an issue of the Sunday store closings. They most likely handed a reluctant Orbán an ultimatum: if Fidesz doesn’t cave on this issue, they might not support a bill that is of great importance to Fidesz. My opponents suspected that the key to this case was not so much the Christian Democrats’ insistence but pressure coming from two Hungarian-owned supermarket chains, operating as franchises. They lobbied for a law that would be advantageous to smaller stores that can remain open on Sundays and disadvantageous to the large foreign-owned chains. Of course, it is possible, even likely, that pressure came from these sources, but given the reaction of the Catholic Church and KDNP there can be no doubt that the Christian Democratic (non)-party had a major role to play here.

KDNP’s fight for Sunday closings began in 2000, and a year later the Conference of Catholic Bishops joined forces with the party. One must keep in mind that the chairman of KDNP, Zsolt Semjén, once described his party as the political arm of the Hungarian Catholic Church. Ever since that time Sunday store closings remained an important demand of the Christian Democrats as well as the Catholic Church. In April 2011 they managed to convince the national economic ministry to conduct a study which, unfortunately for them, showed that the issue was both politically and economically sensitive. It would be unpopular, and it would deprive the budget of about 50 billion forints in taxes. So, for almost four years the issue was not on the agenda. Sometime in early November 2014, however, Viktor Orbán unexpectedly decided to support the idea. The bill was signed into law on December 16, 2014, and beginning on the following March 15 supermarkets, big box stores, and many other retail stores closed their doors on most Sundays.

The repeal of the law on Sunday closings sheds light on decision-making in Orbán’s government. On Friday, on Hungarian state radio, Viktor Orbán still talked about the desirability of Sunday closings and in fact revealed that his government in the past few years has been trying to find ways to extend work-free Sundays to encompass not only the retail trade but other sectors as well. He said, however, that they will take a look at the economic consequences of the current practice on Monday. I got the impression that if the economic indicators were favorable, the present law would remain in force. Moreover, he added, they have “plenty of time” to make a decision. In one sentence that most people overlooked, however, Orbán said that “in light of the debate [in the cabinet meeting] we will decide on the right political conduct.” So, after all, it was not to be a purely economic decision.

This morning Bence Tuzson, undersecretary in charge of government communication, seemed not to have been updated since Friday. In an interview on ATV’s Start he fiercely defended the current practice of Sunday closings. A couple of hours later, Sunday closings were on their way out.

Although I’m sure he tried, Viktor Orbán couldn’t convince the KDNP to support the repeal of the bill their party found so important for ideological reasons. Only about half an hour after the announcement of the decision by Antal Rogán, Népszabadság learned that Péter Harrach, leader of the KDNP caucus, indicated that their MPs will not vote for the repeal. “The question has been a matter of principle for the last seven years,” he said. Soon after the announcement, the Conference of Hungarian Catholic Bishops complained that the government hadn’t asked their opinion. András Veres, president of the Conference, added that “as a Christian and as a bishop of the Church [he finds] the present decision of the government mistaken and outright wrong.” The same Veres, according to HVG, declared that he “hasn’t heard of anyone who died of starvation because he couldn’t buy food on Sunday.”

It is not only the Christian Democrats and the Catholic Church who are against the decision to repeal the law. According to rumor, János Lázár is considering not voting for the bill that most likely will reach the floor tomorrow, although Orbán warned the Fidesz ministers that not voting for the bill might mean losing their jobs. Many rumors are baseless, but perhaps this time there is something to this gossip because Nándor Csepreghy, Lázár’s deputy who is close to his boss, indicated that the younger generation of Fidesz politicians was ready to continue the fight despite societal opposition and pressure from the opposition. Lázár certainly belongs to the younger generation of Fidesz leaders.

As for the economic side of the question, it is hard to decide whether Sunday closings hurt retail business or not. Those who claim it did point out that today there are 8,000 fewer employees in retail trade than at the beginning of 2015. Moreover, they add, in the last year alone about 800 small stores had to close. They argue that the small stores didn’t gain at the expense of large foreign chains, as the government intended. On the contrary, they lost customers. The real beneficiaries, the argument goes, were precisely those large supermarkets and big box stores the government wanted to discriminate against. On the other side, the argument goes something like this. Businesses have only gained by Sunday closings. Their turnover last year was 6% higher than the year before. But the increase in turnover might be explained by higher real wages and the hookup of cash registers with the National Tax Office. And, at the same time, the shuttering of many smaller stores may have nothing to do with Sunday closings.

The wisdom of the repeal is obvious. As Magyar Nemzet rightly pointed out, Fidesz isn’t so much afraid of the result of the referendum as the “road to it.” If a referendum were held, the opposition parties would have three months to campaign in favor of the repeal and against the government. Although the retreat is a loss of face for Fidesz, given its current problems it is better for the government to back down than to slug it out.

Now the opposition should turn to the role played by the officials of the National Election Office and the National Election Committee. The Kúria clearly stated that these officials are unfit to lead an independent body that is supposed to guard the purity of the elections. How can we trust the results of future elections if the decisions of these people are guided by the government’s interests? The opposition parties should also force the government to begin a serious investigation into the circumstances of the February 23 events at the National Election Office. The likelihood of Fidesz involvement on some level in the skinheads’ appearance at the Election Office is pretty obvious to everybody. If the opposition parties put as much effort into these two projects as MSZP did in validating its referendum question, victory might be possible. Fidesz is becoming vulnerable.

April 11, 2016

Hungarian Christian Democrats and freedom of the press

The Parisian terrorist attacks will have, I fear, a negative effect not only on Hungary’s immigration policy but also on freedom of speech and freedom of the press in the country. At least this is the way things are looking at the moment.

In an earlier post I recalled Viktor Orbán’s long-standing belief that Europe as a whole and Hungary as part of the European Union should remain “European.” European in this case means ethnically and religiously pure. Until last week, however, we didn’t know that this sentiment was actually reflected in current government practice.

It was on Sunday afternoon, before Viktor Orbán’s by now infamous press conference railing against immigration to Europe, that I realized that strict anti-immigration policies have been in effect ever since 2010. They were introduced quietly, under cover so to speak. Antónia Mészáros, a reporter for ATV, had an interview with Zoltán Balog on Friday afternoon, which didn’t air until Sunday, in which he admitted that the Orbán government has been conducting an anti-immigration policy all along.

Now there is an opportunity to put this unspoken policy into law. On Monday morning Antal Rogán seconded Viktor Orbán’s position on the undesirability of immigration. The next day the “international spokesman” of the Orbán government, Zoltán Kovács, followed suit and explained the Hungarian position on CNN, not with the greatest success. Richard Quest, the reporter, worried that the kind of debate the Hungarians are promoting will become a witch hunt. He ended his program (and this is a rough transcript) by saying that

What’s worrying is when politicians start whipping up the rhetoric. `Hungary for Hungarians,’ – when it starts to become immigration must be stopped. Then you go into you’ve crossed the line. It’s no longer a debate about whether immigration is good or bad, it becomes one to whip up a ferment. History is replete with examples where this has happened, and anybody who tries to deny an innocent-sounding comment for what it could turn into in the future is simply misguided.

As it stands, four out of ten Hungarians share Viktor Orbán’s and his government’s point of view. Tárki, a Hungarian polling firm, has been keeping track of Hungarian xenophobia for some time. In the decade between 2002 and 2011, 24% to 33% of the population were anti-immigrant. After that date the anti-foreign sentiment shot up to 40%, which is not surprising given the rhetoric of Viktor Orbán and his government.

I talked earlier about some right-wing journalists who intimated that the staff at Charlie Hebdo were responsible for their own fate. They provoked the followers of Islam by drawing crude caricatures of their prophet. This argument is now being taken up by the Hungarian Christian Democrats who are, on the whole, even more radical than Fidesz when it comes to religiosity. Their party is often described as the “political arm of the Hungarian Catholic Church.” According to their whip, Péter Harrach, “neither freedom of the press nor freedom of speech can be extended to blasphemy.”

ShawFareed Zakaria, the American reporter who came up with the label “illiberal democracy” for countries like Turkey or Hungary, wrote an article in The Washington Post on the subject of blasphemy. In it he pointed out that the Koran “prescribes no punishment for blasphemy.” However, as we know, today many Muslim countries have harsh laws against blasphemy. It seems that Péter Harrach finds this practice attractive. But Harrach doesn’t have to look to current Muslim practice for a model. As Zakaria points out, only “one holy book is deeply concerned with blasphemy: the Bible.” The Old Testament is full of stories of blasphemers who receive harsh punishment for their sin. It seems that Harrach wants to lead Hungary all the way back to Old Testament times.

This morning representatives of five parties  (Fidesz, KDNP, Jobbik, MSZP, LMP, Együtt) got together to discuss the fight against terrorism. According to Antal Rogán, the parties agreed that “the European Union cannot defend its member states” and that therefore they must formulate and enforce their own strategies. “Political correctness by now is not enough.” Fidesz suggests that “certain public symbols and values should receive special protection.” Rogán made it clear that “religious symbols” would certainly be covered by the new law. I wouldn’t be surprised if among Hungarians’ “common values” we would also find national symbols. Or even political offices. Or high dignitaries of the land, like the president or the president of the house.

There are some analysts, for example, Gábor Török, who are convinced that the terrorist attack in Paris came at the right time for Orbán, whose party lost another 2% in support last month. According to Ipsos, some of the lost voters drifted over to Jobbik, and therefore the Fidesz top leadership decided to turn up the volume on far-right talk. With this strategy they are hoping to regain solid control of the right. Maybe, but I wouldn’t be so sure. According to some fairly reliable sources, Fidesz leaders are not panicking over their loss of popularity at the moment. In their opinion, the current level of support is still high enough for the party to bounce back. Demonstrations will end soon, and people will forget about their grievances over the introduction of toll roads and the Sunday store closings.

As opposed to Török, I don’t believe that Orbán’s outburst in Paris has anything to do with his party’s popularity. I think that he is convinced of the ill effects of immigration and is happy that he found an opportunity to take up arms against it, alone if necessary, quite independently of the European Union. He most likely explored how far he can go and came to the conclusion that he can introduce a law that would effectively stop immigration to Hungary and that he could also restrict freedom of the press as long as the law does not differentiate between religions. Therefore, I fear that Hungarian journalists can look forward to greater restrictions to their freedom.

Procreation and pensions in Hungary

In the last month or so article after article appeared about the conclusions of a group of economists and demographers who have been discussing possible solutions to the interrelated problems of the low Hungarian birthrate and the eventual depletion of the state pension fund. This group, the Népesedési Kerekasztal (Demographic round table), seems to have the support of the Orbán government. It is deeply conservative and a promoter of family values.

One of the most vocal proponents of pension reform among the group is Katalin Botos, an economist who was a member of parliament between 1990 and 1994 and also served as minister without portfolio in charge of the banking sector in the Antall government. Prior to the change of regime she was a department head in the Ministry of Finance (1971-1987). Lately, she has been teaching economics at various universities.

The Hungarian media acts as if this is the first time the public has heard about the outlandish plans of Katalin Botos. But in May 2012 Népszava ran the following headline: “One must give birth for one’s pension.” At that time Katalin Botos and her husband József Botos were active in the Working Group for a Family Friendly Hungary, which was organized under the aegis of the Ministry of Hungarian Economy. The study that appeared at that time was entitled “A középosztály gyermekvállalási forradalma” (The revolution of childbearing of the middle classes). In it, the Botoses explained the logic behind the introduction of a sliding scale of pension payments depending on the number of children. After all, pensions are being paid by current wage earners, and if a couple did not produce at least two children they are freeloaders.

At that time the group made calculations on the basis of 2010 maximum, minimum, and average salaries and came to the conclusion that an employee earning an average salary would get 14.4 points but only if he/she produced at least two children. Extra points would be earned for each additional child. On the other hand, employees with one or no child would be docked a certain number of points. According to this system, someone with an average salary of 113,000 forints with no children would receive a pension of 70,000 forints while a person with four children would get 142,000!

Triplets

The more the merrier

Members of the working group did address the problem of couples who cannot have children for physical reasons but somewhat heartlessly remarked that “the fact still is that there is no one behind them who is responsible for their pensions.”

When this study was made public the vast majority of experts found the scheme unacceptable and ineffectual. To hope for a higher birthrate by linking it to higher pensions thirty or forty years later is totally unrealistic.

The public reception was anything but friendly, and the government promptly announced that they have no intention of introducing it in the near future. But, as we can see, this plan has remained on the government’s agenda because the latest scheme released by the Demographic Round Table is practically the same as the one in 2012. The few additions to the new report in fact make it even less attractive.

As far as the government was concerned, the original Botos plan had one huge flaw: in the Roma population families are large and girls begin to reproduce early. Surely, the argument went, you don’t want to encourage them with a pension system that might increase family sizes. So, an additional restriction was added: only children who finished high school (matriculation) or trade school would count. Not surprisingly, this was considered by critics of the plan as anti-Roma.

This time around the authors of the scheme also addressed details that were not considered in the 2012 version. For example, a person whose child died before he could finish high school would be exempt. The same would be true of children with a mental disability. But many questions remain. What will happen to young people who decide to work abroad? Will their departure be accompanied by a drastically reduced pension for their parents?

Although the plan was fleshed out a bit, by and large the “mad” scheme, as many commentators called it, remained intact.

Across the whole spectrum of the Hungarian media the reaction was uniformly negative. And real panic set in when Péter Harrach, leader of the Christian Democratic parliamentary delegation, announced that the report of the Demographic Round Table was in line with the thinking of the government and therefore there was a good possibility that the suggestions will be adopted, perhaps as early as September.

This was unfortunate from the government’s point of view. Right before the municipal elections such an announcement could have disastrous consequences, especially among those under the age of 35 whose pensions would be directly affected by the new law. Mihály Varga, minister of national economy, quickly reassured the voters after Harrach’s unfortunate interview that “it will not be necessary to have more children for higher pensions.” The Hungarian pension system is stable and there is no need to make any changes before 2030. But then why all the talk about a scheme that has been on the table for at least two years?

Well-known experts on the pension system, like György Németh, are convinced that the entire economic framework that lies behind the Botos couple’s scheme is wrong. In fact, in Németh’s opinion, it is unacceptable. Raising the birthrate is desirable, but it can be achieved only by the introduction of government measures that lower the expenses of child rearing. Compensation forty years down the road for the heavy financial burden of bringing up children today will not achieve anything. It is no coincidence that this interview appeared in Magyar Nemzet.

I would like to believe that this madcap idea will not be adopted, but I have a strong suspicion that in spite of Varga’s assurances to the contrary something is afoot. I would not be at all surprised if within a few months parliament passes a law that links procreation with pensions. If such law is passed, even more people will leave Hungary and settle elsewhere where the state does not interfere in their private lives. Oh well, at least the state won’t have to worry about their pensions.