Tag Archives: University of Pécs

The City of Pécs, which served as Fidesz’s laboratory, is close to bankruptcy

In preparation for today’s post on the chaotic situation in my hometown of Pécs, I read two pieces I had written in October 2009, shortly after, as the result of a by-election, Fidesz candidate Zsolt Páva became mayor of the city. The first article was titled “Watch Pécs: It will tell a lot about Fidesz plans for Hungary.” Rereading this article eight years later is an eerie experience because indeed Fidesz was using Pécs as a laboratory for its own plans for the country. All the tricks it later employed, including the national consultations, were first introduced in Pécs.

Originally Páva, in true populist fashion, wanted to take the oath of office on the main square, right in front of City Hall, but MSZP and SZDSZ members of the city council, who were in the majority, refused to endorse the plan, considering it “blatant demagoguery.” Eventually, Páva took the official oath inside the building but repeated the performance in public.

Soon enough one “referendum” followed the next, which were the forerunners of the Orbán government’s national consultations. Páva spent a sizable amount of money on these referendums, in which his administration inquired about matters to which the answer could only be “yes.” Doesn’t it sound familiar? Páva also sacked all city employees who had anything to do with the previous administration. In no time he managed to change the composition of the city council by convincing a couple of members to switch parties; thus Fidesz achieved a slight majority in the council. Every company owned by the municipality was audited at a considerable cost because, Páva claimed, the audit would save the city 500 million forints. This was, as it turned out later, simply not true.

His next move was the forcible takeover of the water company in which the minority shareholder was Suez, a well-known French company. Páva ordered security men to occupy the headquarters of the firm at 3:30 in the morning. When the employees arrived for work, the guards prevented people belonging to the upper and middle management of the company from entering. A few days later a new city-owned water company was formed with a capital base of five million forints. (No, that’s not a typo.) The new company promised to pay the salaries of Suez’s 360 employees from their “riches” of five million. Suez was stunned and called the occupation of its headquarters “forcible entry.” Naturally Suez brought legal proceedings against the city. The law suit dragged on for years. Pécs was finally assessed 3 billion forints for its share in the water company, which the city of Pécs was unable to come up with. The bill was paid by the central government.

Something very similar happened in 2016 when the city of Pécs acted as an intermediary, hoping to pass the Zsolnay Porcelán Manufaktura on to a Fidesz oligarch. The factory was owned by a Syrian-Hungarian-Swiss businessman who had bought 74.5% of the shares from the city and promised to sink 500 million forints into the enterprise. The methods were roughly the same as in the Suez case. First Páva and the businessmen behind him established a new company by enticing the majority of the approximately 150 workers to abandon Zsolnay in favor of the new city-owned company. The aim was a forcible takeover of private property. I don’t want to go into the complicated machinations, but a certain businessman with close ties to the Orbán family suddenly had a burning desire to own Zsolnay because of the large restoration projects in the Castle District and elsewhere in Budapest. The roofs of many of these buildings, which had been erected in the last years of the nineteenth century, were covered with pyrogranite tiles made by the Pécs factory. In the end, the city failed because the Syrian businessman wasn’t easily intimidated and had enough money to clear all of his debt to the Hungarian Eximbank, which had been complicit in turning him out of his property. The financial loss to the city as a result of its new “business venture,” which never got off the ground, was again considerable.

By now, apparently, the City of Pécs is close to bankruptcy. For some time, there has been talk about Páva’s possible departure from the mayoralty. About three weeks ago a press conference was scheduled to take place where the mayor was supposed to announce the establishment of the Magnus Aircraft factory in Pécs. This is a huge event for the city, whose economy is in the worst shape among all larger Hungarian cities. Since 2009 the city has lost 13,000 inhabitants, unemployment is high, and investors don’t find the city, far away from Budapest and hard to reach from the West, attractive. Yes, it is a charming city with a rich history, but aside from the university with its 20,000 students it has little to offer economically. The nearby coal and uranium mines have closed and nothing came to replace them.

Együtt: City of Pécs close to bankruptcy. When will Zsolt Páva resign?

So, the intention of Magnus Aircraft to set up a factory is big news. I must admit that I had never heard of this company, which developed the e-Fusion, the first all-electric, aerobatic trainer aircraft. It is a Hungarian company from Kecskemét which describes itself as a multinational group. It has a business arrangement with Siemens, which provides the batteries. What will come of this new technology no one knows, but Pécs is very excited.

The long-awaited press conference was held, sans Mayor Zsolt Páva. Instead, two Fidesz members of parliament representing the district, Péter Csizi and Péter Hoppál, made the announcement. Páva’s absence indicated to those journalists who, after being booted out of the local Dunántúli Napló when it was bought by Lőrinc Mészáros, founded an internet news site called Szabad Pécs (Free Pécs), that Páva’s position must be shaky. And soon enough came the news on the city’s official internet site that “a new policy making body will lead Pécs” from here on. The decision was allegedly reached by the Fidesz-KDNP members of the city council. The mayor, the deputy mayors, and the two Fidesz MPs will comprise this new group, but its chairman will not be Páva but Péter Csizi. So, as Magyar Nemzet rightly points out, the city will be run by a committee no one elected. Not exactly a democratic solution to a problem.

It is highly unlikely that the decision to establish such a body was made by the Fidesz-KDNP members of the city council. I wouldn’t be at all surprised if the decision came from Viktor Orbán himself. Removing Páva at this juncture is out of the question because holding by-elections now would be a suicidal move. According to my calculations, if LMP hadn’t decided to run alone in 2014, Pécs wouldn’t have two Fidesz members of parliament today. In local elections Fidesz cannot rely on foreign votes, and the locals are pretty unhappy with the Fidesz leadership. The last thing Orbán wants is an electoral loss in a major Hungarian city.

According to rumor, Pécs, during the tenure of Zsolt Páva, has accumulated 24 billion forints in debt. The city is close to bankruptcy despite the fact that Pécs did not have to pay the 3 billion forints to Suez by way of compensation. As far as I know, the owner of Zsolnay Manufactura is also suing the city.

The Fidesz laboratory set up in 2009 has failed miserably. Páva did everything that was demanded of him and yet, or perhaps because of it, he drove his city into bankruptcy. Is it possible that once Orbán’s rule is over the country will be in a similar situation despite the regime’s bragging about its fantastic successes? Not at all unimaginable.

Tomorrow Pécs will have a distinguished visitor, the prime minister himself. He is allegedly attending the 650th anniversary celebration of the university’s founding. Well, kind of. It is true that the first and only Hungarian medieval university was established in Pécs in 1367, but it most likely survived for less than fifty years. The real founding of today’s university was in 1921 when the University of Pozsony (today Bratislava) moved to Pécs. But more about that sometime in the future.

August 31, 2017

Ruling of the European Court of Human Rights: The case of Krisztián Ungváry v. Hungary

Today’s topic should resonate with readers of all political stripes. Any news about secret agents of the Kádár regime, especially because of the lack of full disclosure, always arouses a great deal of interest. In addition, tidbits about Ferenc Gyurcsány’s activities as KISZ secretary at the University of Pécs in the 1980s are highly sought after, especially in right-wing circles. Add to that a former “official/informal contact” between the university and the Ministry of Interior’s infamous secret service who happens to be today a member of the Hungarian Constitutional Court. Finally, a decision of the European Court of Human Rights that finds the Hungarian Supreme Court’s finding and judgment in the case of Krisztián Ungváry v. László Kiss irreconcilable with Article 10 of the European Convention on Human Rights, which prescribes that “everyone has the right to freedom of expression.”

Krisztián Ungváry

Krisztián Ungváry

The story started in 2007 when Élet és Irodalom (ÉS) published an article by Krisztián Ungváry, a historian who is an authority on, among other things, the secret service and its agents during the Kádár period. The article was about an aborted student movement at the University of Pécs. In 1982 three young law students wanted to start a peace movement independent from the official Országos Béketanács. They never thought the authorities would find anything wrong with such a movement. After all, Kádár’s Hungary, like the whole Soviet bloc, made frequent references to peace as something desirable. The problem was that the inspiration for this particular movement came from Western Europe and wanted to banish nuclear arms from the whole of Europe, including Soviet arms that could also be found on Hungarian soil. Therefore, the authorities immediately reacted in order to squash the Dialógus program, as the movement was named by the students.

The details of this “storm in a teapot” are not interesting as far as our story is concerned, but the original article does shed light on many aspects of “gulyás communism” that were not evident to the passive majority of Hungarians. The thesis of the article is that very often it was not the secret agents who were the most important sources of information for the Ministry of Interior but the so-called “informal contacts.” In connection with the Dialógus affair Ungváry mentions eight people who served as “informal contacts,” most of whom he managed to identify. Among them was the party secretary of the law school, László Kiss, then associate professor and today a member of the Constitutional Court, a position he has held ever since 1998. At the same time Ungváry comes to the conclusion that, although Gyurcsány as a KISZ secretary was a link in the chain, his role was minimal and he was not one of the “official contacts” the Ministry of Interior relied on.

Kiss Laszlo

László Kiss

Ungváry had proof of Kiss’s reporting to the Ministry of Interior and therefore had no reason to believe that he might be the object of years of litigation in connection with this article. A few days after the appearance of his article, Kiss made an announcement that was published in ÉS in which he declared that he had never been an agent and “never worked with the persons of the secret service mentioned in the article. In fact, he didn’t even know them personally.” He threatened Ungváry with both civil and criminal legal proceedings and, as it turned out later, brought charges against ÉS as well.

Ungváry’s answer in the same issue pointed out that Kiss’s name appears in the folder dealing with the Dialógus affair as the source of information on the details of the case. That didn’t satisfy Judge Kiss, however, and he proceeded with the litigation that lasted over three years.

Ungváry was acquitted of the criminal charges, but he and ÉS lost the first round in the civil case. In March 2010, however, the appellate court ruled in favor of Ungváry and the weekly paper. Liberal groups were delighted, and SZEMA (Szabad Emberek Magyarországért, the party of Klára Ungár) called on Kiss to resign his post after the ruling. After all, Ungár argued, a man with such a past shouldn’t be a member of the Hungarian Constitutional Court. 

Naturally Kiss had not the slightest intention of resigning. Instead he appealed to the Supreme Court, which promptly reversed the appellate court’s decision. Again liberal groups were up in arms, especially since the court fined Ungváry 3 million forints and ÉS 2 million for publishing the piece. But even Mandiner, a group of young conservatives, stood by Ungváry; in fact, they collected money so he would be able to pay the stiff fine. But Ungváry is not the kind of man who gives up easily. Shortly after the ruling of the Supreme Court in June 2010 he appealed to the European Court of Human Rights. On December 3 the Strasbourg court ruled against Hungary. Thus Hungary will have to pay 7,000 euros to Ungváry and, 3,000 to ÉS over and above the amount the paper had to pay in fines after the ruling of the Hungarian Supreme Court.

The decision was a narrow one and the Hungarian government has the right to appeal, which would initiate another round of legal proceedings at the Grand Chamber of the European Court of Human Rights. The Hungarian government hasn’t responded yet but László Kiss certainly has. He is planning to sue Ungváry for distorting the verdict of the court when he announced that the finding of the court “validated” his claims about Kiss’s activities. Kiss went so far as to claim that the Strasbourg court “announced that Ungváry was unable to prove his claims,” which were no more than “speculations” that lacked any corroborating evidence.

I checked the published judgment of “Case of Ungváry and Irodalom Kft. v. Hungary.” Since Kiss referenced the word “speculations,” I decided to check the text of the judgment. I found only one “speculations,” and not where I would have expected it to be if one believed László Kiss. No, the word was found in the description of the Hungarian Supreme Court’s judgment that the Strasbourg Court found wanting. Let me quote.

53. The Court notes the finding of the Supreme Court according to which the first applicant [i.e., Ungváry] was unable to prove that Mr K. had been in regular contact with the State security, often anticipating and exceeding its expectations. The Court finds that these expressions exceeded the limits of journalism, scholarship and public debate. In the present case, it is not the –arguably excessive – form of the expression but the defamatory content of these speculations, which the Court finds objectionable as being without sufficient factual support. …

The Court notes that the article intended to demonstrate that collaboration, that is, the activities of “official contacts” meant cooperation without specific, express operational instructions from the State security. Limiting its analysis to this kind of direct cooperation with the State security, the Supreme Court failed to consider that Mr K.’s reports had been in any case available to the authorities of the Communist regime, nor did it attribute any particular relevance to the fact that the first applicant’s undeniably offensive and exaggerated statements were made within the context of the broader presentation of the workings of the oppressive mechanism of a totalitarian regime. It did not consider relevant, either, that the first applicant had indicated the sense in which he had used the term informing (see paragraph 8 above). Indeed, the article was written in order to demonstrate how closely the Ministry of the Interior and the “social organisations” had worked together, and especially, how tight the relation had been between party functionaries and the Ministry of the Interior.

And finally:

The Court notes that the Supreme Court interpreted the first applicant’s description of these officials as one portraying them “guilty by association” – which, in that court’s view, could not prove that Mr K. “actually cooperated” with the State security (see paragraph 19 above).

The Court cannot agree with the deduction of the Supreme Court.

The Court finds that although the first applicant did not prove that Mr K. and his reports had actually been commissioned by the State security, it was nevertheless an undisputed fact that he, as a party secretary, had produced reports on the Dialógus affair. (p. 15)

If I read the decision of the Strasbourg court correctly, I don’t think that Judge Kiss has a chance. Unless, of course, the Hungarian judges are intimidated by the almighty judge of the Constitutional Court.