0:03
In Hungary, discontent amongst the population is growing and the protest movement against the almighty Orbán government is getting bigger
0:16 INSERT Source: TASZ
Thousands of people gather before Parliament in Budapest to demonstrate against government policy. Many young Hungarians, who have organised themselves through online platforms like Facebook, don’t like how Prime Minister Viktor Orbán’s ruling party has divided the country since coming to power a year and a half ago.
00:41
“I do not like the system”, sings the young Dorothja Karsay. This rap has become an anthem of discontent in Hungary.
0:52 INSERT music video Dorottya Karsay (SUBTITLE)
I don’t like it, I really don’t, that autumn leaves start to fall
I don’t like it that my degree is worth nothing at all
I don’t like it that every single day is gloomy, not just Sundays
I don’t like it that they make stupid mistakes in my name
1:06
Many of those demonstrating here voted for Viktor Orban’s Fidesz party, but they are now disappointed
1:18 to 2:01 OT László Lengyel, a political scientist Markus
I think a lot of people wanted the Fidesz party to get a two thirds majority because they thought it would mean peace, security, jobs; a stronger economy; as well as wage and pension increases. For voters, a two-thirds majority meant stability after having an uncertain, chaotic government. Orban himself also promised stability. I'm sure that voters didn’t get what they expected.
02:04
In April 2010, a huge change in the country’s political system took place. Viktor Orbán’s Fidesz party gained nearly 53 percent of the vote in the elections and in doing so gained a majority in parliament that would allow his party to make changes to the law and constitution unilaterally. Intoxicated by this unprecedented election victory, Orban proclaimed that “a revolution had taken place in the voting booths”.
2:37
One of Orban’s first actions as Prime Minister was controversial. In all ministries, offices, and schools Orban declared that the new "national declaration” must be hung in a suitable place. It says that Hungary has once again summoned its vitality as a nation and brought about a new revolution.
3:00
While Laszlo Solyom, [PRONOUNCED SHO-YUM] the former president was in office, he refused to hang up the declaration and in doing so probably sealed his fate as far the future of his presidency was concerned. The president is traditionally elected by the Parliament, which ended up being dominated by Orban’s Fidesz party.
To ensure obedience, Orban has made sure all the important functions of the state are run by loyal followers. One of his most faithful is Pál Schmitt, who was elected as President by Fidedsz with their two-thirds majority. He gave thanks but promises to remain fair and not to control the government:
3:42 to 3:54 OT Pál Schmitt, President of Hungary
I don’t want to be an obstacle to the government. On the contrary, I believe in the constitutionality of laws passed in Parliament.
04:00
Loyalty is also demanded from his officials, who are replaced after each change of government - right to the lowest level. Unlike officials in other countries, their positions are not permanent and they can lose their jobs.
4:11 to 4:56 OT László Lengyel, political scientist
I think Hungary is a democracy in the sense that Orban has won a legitimate election by fair and lawful means. He even got a two-thirds majority. This is legitimate democratic power. There are, however, aspects of this government that no longer function as they should in a democracy. For example, the Orban government has lifted constitutional controls. If all of Orban’s plans are realized - and chances are that they will - a new system will be created that will not have a single constitutional counterweight
Secretary of State for Foreign Affairs, Gergely [PRONOUNCED GUER-GEY] Pröhle backs this view:
5:03 to 5:52 OT Gergely Pröhle, Secretary of State for Foreign Affairs
[READ A BIT SLOWER]
The impression our government gives is deceptive, though I must say that it is unusual for a party - or an alliance of parties – to have a two-thirds majority in parliament. This is just something that people need to get used to, because this system we have is different to the rest of Europe. It’s also clear that those who are frustrated with the political situation do everything they can to assert their opinion through the international media in order to have some influence on Hungarian politics.
5:52
Orban leaves nothing to chance. If he considers something important, he will care about the tiniest details. At the ceremony marking the takeover of the EU presidency, he personally controlled the sound system and seating arrangements.
Filming the preparations had to be covert - Orban's advisors threatened to confiscate the images.
6:26
Orban distrusts the media and has appointed loyal follows to control it. A specially formed watchdog, which consists exclusively of people from the ruling Fidesz party, has been set up to monitor whether the media is balanced and objective. They can impose fines if the reporting does not appear to the authorities to be impartial and unbiased.
6:52 to 7:21 OT András Arató; Director Klubradio
In my opinion, the essential thing about media law - and I say this as a Hungarian citizen and not as a radio director - is that any measure can be taken against a medium. The situation we have basically gives the law a free hand to control the media. They can assign or remove frequencies and impose penalties for everything.
7:26
Klubradio is a private radio broadcaster, which is considered by Fidesz politicians to be on the left of the political spectrum. It reports critically about Orban’s government around the clock. Their broadcast license expired earlier this year, and they are operating provisionally until the media authority decides whether it will allow them to continue. Recently, they have lost advertising contracts from state run organisations like the lottery. The radio producers believe that the Orbán government is behind it because they wish to see the station closed:
8:05 to 8:33 OT András Arató; Director Klubradio
The media authority will never admit this and I can’t prove a link, but I know for a fact that our critical, independent and liberal nature has made things difficult for us. Today, Klubradio is the only democratic radio station that allows political debate. One could say that Klubradio is Hungary's largest forum for public discussion.
08:36
People have repeatedly demonstrated in the streets of Budapest against the controversial media laws - laws, which have also brought a lot of criticism from the international community. Although the government has eased up slightly due to pressure from the EU, it still has plenty of opportunities to take action against what it considers “troublesome media”. Many journalists also now submit themselves to self-censorship.
9:02 to 9:21 OT András Arató; Director Klubradio
Because the boundaries of what is acceptable are not clearly defined, it is not clear to journalist what they will be punished for, so they have to think about how far they can go. Because they can’t see the boundary, it forces them to be overly cautious.
9:28 to 10:13 Pröhle Gergely, Secretary of State for Foreign Affairs
Have you noticed any change in the last three or four months since the new media laws have come into play? I have not. When I read the newspaper, or watch the private and public television I don’t see any difference at all. I recognise that the government is subject to more intense criticism, which is right, because as I said, freedom of the press is important. But there can be no doubt that after 20 years, freedom must be coupled with responsibility.
10:15
Prime minister Orban rewrote the constitution after winning the elections. It now has pride of place in municipality offices like this one in Gyor [PRONOUNCED ‘GOOER’] where it is presented on the "table of the Constitution", which has been arranged according to strict guidelines. One of the most dramatic interventions in the new Hungarian system is the bypassing of the Constitutional Court, which means that Supreme Court judges no longer have any say over taxes or economic laws.
10:45 to 11:01 Gergely Pröhle, Secretary of State for Foreign Affairs
This is only a temporary measure until Hungary’s debt has been reduced to 50 percent of its GDP, at which point it will be automatically removed.
Experts in constitutional law say that the creation of these amendments was unnecessary
11:07 to 11:31 OT László Lengyel, a political scientist Markus
Viktor Orbán wanted to abolish the old constitution and start anew, so that his new system would have a legal basis. He wanted to create a system that is independent from the Constitution and independent from the rule of law - one that cannot be controlled by legal or other means.
11:31
Many Hungarians see themselves as a proud nation, like their horse-bound forefathers who struggled for survival and the independence of their country. The history of the Hungarian people is famously referred to in the preamble of the constitution and is mentioned alongside references to Christianity and King Stephen, who is credited with establishing the Hungarian nation a thousand years ago.
12:01
His holy crown is exhibited in the Hungarian Parliament and is used to represent the continuity of the constitutional government. The constitution’s preamble also serves as the national creed, which has been recently updated by Orban’s government despite there being no referendum on its amendment.
12:23
Critics speak of national romanticism, historical kitsch and a backward-looking part-chauvinistic constitution, which has little to do with the fundamental laws of modern democracy. The vast majority of the population also has little interest in the constitution - hardly anyone actually sits here and studies it. The people of Hungary have other things to worry about. Nevertheless, the government has let these small study areas in the municipality buildings cost more than 200,000 euros.
12:55
This is money that is desperately needed in places like this – a kindergarten for children of homeless mothers. With the money, the evangelical church, which runs this nursery, could fund it for a two years. Around 40 children from problem families are given hot meals, care and an allowance, but the Orban government has other priorities and has cut the budget for the schools like this to a third.
13:29 to 13:57 OT Gabor Ivanyi, nursery manager MARKUS
Since last year, austerity measures have been implemented throughout the education and welfare system. Here in children’s schools there has been a 30% reduction in state funding. Because of the ever-increasing prices we must also increase salaries for our staff. Water, gas and electricity have also become more expensive and as a result our standard of living has decreased.
14:00
Poverty is getting worse in Hungary, which is reflected by the growing number of homeless people seen on the streeets. This winter about 10,000 people will sleep rough here. Hungarian charities like Maltese will be able to help almost half of them, but the rest will be left to fend for themselves
14:24 to 14:42 OT Miklós Vecsei, Head of the Maltese
This situation has not arisen because of the over-indebtedness of households, but because the construction industry has stalled, which relies upon a lot of casual labour. Without these jobs, many people have again become homeless
14:42 Insert source TASZ
The Orbán Government has decided to combat growing levels of homelessness by making it illegal. Everyday in Budapest, the police arrest dozens of homeless men and women. If you are caught sleeping rough you must pay a fine; those who can’t pay are arrested.
15:09 to 15:33 OT Miklós Vecsei, Head of the Maltese
This is a bad move at the start of winter because there is not enough accommodation. This law has created a lot of resistance amongst sociologists and social workers; the government should meet with so that we can work together
15:24
The state has no money for generous social programs. Hungary is facing an economic crisis and its debt amounts to more than 80 percent of its GDP.
15:34 to 16:07 OT Pröhle Gergely, Secretary of State for Foreign Affairs
[READ A BIT SLOWER]
I’m sorry to say that the governments over the last 8 years, during the socialist and social-liberal era, amassed a mountain of debt that has ruined the country economically. We have a massive 80 percent deficit, which we have to reduce as quickly as we possibly can.
16:07
Hungary needs money. And so the Orban government gets it from where it believes it can be found: the banks. First, it imposes the highest levy in Europe, and then financial institutions are shocked with a law that favours the repayment of foreign currency loans.
Led by the Austrians, Hungarian banks intensively advertised fast and cheap money in the form of ‘foreign currency credit’. At the time, the lending rates of a Swiss franc or euro were less than half of a Hungarian Forint loan. More than 1 million people borrowed in Swiss francs or Euros but little was spoken about the currency risk
16:50 to 17:24 Radil OT Thomas, Director-Sopron Bank
Of course the banks pointed to the foreign currency risk, but it was beneficial for customers to take advantage of low interest rates… and you must keep in mind that the interest rates on Swiss franc loans were half as much as their Forint equivalents, which has a big impact on monthly instalments. And that was the big incentive; this was why so many customers wanted these loans. People underestimated the risks because the exchange rates tended to be very stable and the interest rates were so favourable.
17:26
Today the economic crisis and the weakening of the national currency have made it hard for over 800,000 borrowers to repay their foreign currency loans. More than 100,000 are in arrears with their payments and many have been forced to sell their homes because they can no longer afford the increased interest rates.
In no time the prime minister proposed a law that entitles borrowers to repay their Swiss franc and Euro loans in one go, at a fixed and very favourable exchange rate. The cost of the exchange rate losses will instead be shouldered by the banks.
The two-thirds majority of the Fidesz party has made a plan like this possible.
18:17 to 18:51 Radil OT Thomas, Director-Sopron Bank
I think it’s a disaster for all businesses in a country when a government imposes retroactive laws so that certain legal securities no longer exist. For foreign currency loans being repaid below market exchange rate this means that 25-30% doesn’t have to be repaid. So for example, if someone has a loan of 100,000 francs, there will be a loss for the bank of 25 – 30,000 francs per loan.
18:54
The Sopron bank in Hungary provided more than half of their loans in a foreign currency - their total loss won’t be known until it’s clear how many borrowers take up the government’s fixed rate repayment plan. The First Bank - one of Hungary's largest lenders - expects a loss of 450 million euros.
The new law imposed by the Orban government may also cost the Raiffeisen bank 100 million dollars.
19:19 to 19:56 OT Pröhle Gergely, Secretary of State for Foreign Affairs
[READ A BIT SLOWER]
The banks wanted to do business but have done so recklessly; the Hungarian Financial Authority also acted irresponsibly. These banks will now have to pay just like other countries in Europe like the United Kingdom – this is just what has to happen under the circumstances.
19:58
Similar measures have been taken with supermarkets, utilities and telecommunications companies, who have all been asked for money by the Orban government. Despite these measures, the economy is still getting weaker.
20:14 to 20:28 OT Miklós Losoncz, economic researcher
The purpose of this taxation is to generate additional revenue for the state budget, but this has also hampered economic growth.
20:28
Orban insists that his government’s crisis tax is still necessary for Hungary’s economic recovery despite its potential to discourage investment, particularly from abroad.
20:41 to 21:01 Thomas Radil, Director-Sopron Bank
This is a serious blow to the economy because investors are deterred from coming to Hungary – this is something we’re seeing already. Direct investment is clearly decreasing; money is going abroad and not enough is coming into the country
21:01
A blow for many foreign companies is the introduction of a tax on unhealthy foods. Sugar and caffeine in soft drinks, salt in snacks, and carbohydrates in baked goods are considered unhealthy and are being subjected to higher taxes.
Fat however, has not been taxed, because this would burden the Hungarian sausage and meat industry too much. Therefore, unhealthy fast food has not increased in price.
Additional taxes have been designed by the Orban government to mainly target imports from foreign companies.
21:37 to 22:08 Maria Zita Petschnig, economic researcher
The actions taken by the government threaten to jeopardise investment from abroad because it’s pursuing strong protectionist policies. One example is through the extra tax in the retail sector, which is designed so that the largest Hungarian commercial chain - CBA, which supports the ruling Fidesz party - is not affected.
22:10
Hungary's economy is stagnating. In order to stimulate it, the Orbán government has introduced a new flat tax, which amounts to about 20 percent of total income. No matter how much you earn, you only pay 20 percent as tax, so the higher your income, the more money you have.
The government has calculated that with this tax those who are better off will have more disposable income, will consume more, and therefore help boost the economy.
22:40 to 22:54 OT Miklós Losoncz, economic researcher
This assumption about income is false. People who have more money also save rather than spend, which will not help the economy to be more dynamic.
22:57
Instead it’s people on low-incomes who are likely to pay the real price of a flat tax. Those who earn no more than 1000 euros a month – which is more than half of all Hungarians - pay more income tax than ever before.
23:11 to 23:48 OT Maria Zita Petschnig, economic researcher DANIELA
Unfortunately we have to admit that the gap between rich and poor is increasing. We still have no official statistics, but many factors indicate that this is the case. The Orban government does not want to make the lower classes poorer but it wants to create a new middle class, a new upper-middle class, which will provide them with political support. This is their socio-political objective, to which all economic decisions are being subordinated
23:55
The current Hungarian parliament is a real law machine. Through shortened proceedings, proposals by the Orbán government are processed swiftly. Long Parliament debates and discussions with stakeholders are easily bypassed, and decisions are made in a small circle around Victor Orbán:
24.19 - 24.47 OT László Lengyel, political scientist
Every Monday the Prime Minister and his closest staff sit down together. They discuss what must become a law in the following week, which representative presents it, and how it must be introduced in parliament. The following Monday it must be announced that everything has been done properly. This is a bunker mentality.
The two-thirds majority of the governing Fidesz party promptly agrees to new proposals. At this speed, proper debate becomes impossible
24.58-25.52 OT László Lengyel, political scientist
Yes, the parliament decides everything with a two-thirds majority because it is important to keep the party together. The only opposition to Orban would be from renegade members of his own party. The only danger is if fifty MPs say no, we don’t want this. However, Orbán has already agreed with all the major members who gets what, so they have an incentive for good behaviour and understand what the penalty will be if someone doesn’t comply. Because everyone knows what’s what, they will vote more diligently. No one will venture out into the open. No one will revolt against Viktor Orban
25.52 Insert March 2007
These images from 2006 and 2007 show violent demonstrations against Ferenc Gyurcsány’s [PRONOUNCED FERENCE DUERSCHAN – ROBBIE, YOU MIGHT WANT TO LISTEN TO ONLINE PRONUNCIATIONS, THIS ONE IS A BIT TRICKY] the hapless Socialist government.
They are often called upon when the Orban government are accused of dismantling democracy and amassing too much power
The protests were triggered when an audio recording was released in which Gyurcsány admitted lying to voters in order to win the elections. He spoke in his re-election campaign about the economic situation being better than it really was
The Orbán government interprets this unlawful police brutality as an attempt by the Socialists to undermine Hungarian democracy.
26:52
Anyone who criticizes the right-wing nationalist politics of the Orbán government usually gets the following response:
27.00-27.37 OT Pröhle Gergely, Secretary of State for Foreign Affairs
The critics of today - who are so concerned about democracy - where were they when the Socialists were bludgeoning peaceful demonstrators under Gyurcsány? I didn’t read any outraged comments then. One can criticize everything, but the criticisms would have had more credibility had they been expressed when the socialists had been in power - but I heard nothing!
27.38 Insert April 2010
In eight years, three Socialist Hungarian Governments have driven the country into an economic wall. Because of this, the vast majority of the population decided to vote for a new party in the elections a year and half ago. But as time goes by, more and more Hungarians are wondering whether the party they chose is any better than the one they didn’t vote for…
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