3 February 2014, Budapest

Dear Mr. Speaker, Fellow members, Ladies and Gentlemen,

As you can see, those who know what they want are even helped to success by their adversaries. I would like to the members of parliament form the government party for their greeting applause, even if it was the result of provocation.

Well, Mr. Speaker, Ladies and Gentlemen,

At the beginning of each new session of Parliament, the Government reports to the House on any important decisions made since the previous session and informs the House on its plans for the upcoming year, in accordance with our constitutional traditions. This is how the Government contributes to enabling Parliament to successfully debate the challenges we face and what the country expects from us. And so I will begin by listing some of the Government's important decisions.

As a result of continuous negotiations in Brussels, the document that regulates the financial cooperation between Hungary an the European Union during the next seven years, and which in the political nomenclature of the European Union is called a Partnership Agreement, has been completed. Just to remind you, the goal we have set ourselves is to put sixty percent of the many thousands of billions of forints available towards economic development. This is an important prerequisite to enable us to put an end to the economic crisis and to enable Hungary to move forward on a path of growth during the next four years.

Fellow Members,

In accordance with the Parliamentary decisions adopted in 2005, 2009 and 2011, we have concluded an inter-governmental agreement with Russia on cooperation in nuclear energy. The Government has performed its duties; the final decision is yours. The international agreement hat we have put before you must after all be authorised by Parliament, as is the custom in a constitutional democracy.

Thirdly, the Government has re-purchased the formerly German-owned shares and related company management rights Budapest Gas Works Co. This means that Budapest Gas Works is once again fully public property, jointly owned by the Municipality of Budapest and the Hungarian State.

Fourthly, the Government has come to a decision on the construction of a congress centre in Budapest, and has denoted its location next to the Palace of Arts.

Fifthly, the Government has reviewed and amended a few details of the Digital Community Programme for Miskolc and its agglomeration, with which we shall construct the network, provide the required equipment and as a result make it possible for several tens of thousands at first, and later for several hundreds of thousands of people to connect to the internet. This is a special, experimental initiative, which if successful, could be implemented nationally.

Sixthly. the Government has developed a Teaching Pool and Classroom Construction Programme for 2014-2015. As a result of the programme, all district centres will have at least one public swimming pool, and this means the construction of at least 32 new public swimming pools.

Seventhly, the Government has declared the hosting of the 2021 World Aquatics Championships to be a priority issue. This means that the required permits will be acquired in time and the required construction work will be completed in time. As I am sure you remember, we succeeded in winning the right to host the FINA World Aquatics Championships last summer and it will be the largest sporting event ever held in Hungary.

Eighthly, As I am sure you are already aware, this year, Hungary is switching to a new system of cash registries with an online link to the tax authorities. Since we have transferred the weight of our taxation system from income taxes to taxes on consumption, this transitional programme is a prerequisite of our balanced budget management. In the interests of managing the problems association with the transition, the Government has worked out a solution that guarantees no honest, law-abiding retailers will suffer damages.

Ninthly, I hereby inform the House that, as a result of our government delegation's visit to Turkey, we have concluded 32 different treaties and have also succeeded in assuring that in future, Hungarians can travel to Turkey without the need for a visa.

Tenthly, we have held a summit with the participations of the Prime Ministers of the Czech Republic, Slovakia and Poland, at which we reviewed the situation in Ukraine, which has become chaotic. The Ministers of Interior of our four countries are in continuous contact and are cooperating to handle the consequences of the crisis in Ukraine. We Hungarians are following the political developments in Ukraine, which currently paint a picture of anarchy, with concern. We have an interest in a negotiated solution to the situation that restores peace, public safety and a system of public power based on the law. it is with special attention that we are monitoring the situation of Hungarians living in Transcarpathia, and we view it as our duty to offer them support and protect their fundamental interests in these precarious times.

And finally, number eleven, I would like to inform you that significant new foreign investments have been made in Hungary since we saw each other last in this great hall. As a result, the Hungarian economy will grow significantly, in addition to which these investment also lead to an increase in the number of workplaces. Just to quote some examples, and American and an English company have both decided to move their service centres to Budapest recently, creating 500 and 250 new jobs, respectively. A Russian company has established a logistics centre and a freight company, with the creation of 1500 new jobs. The new project of the László Batthyány Children's Home for the Blind, the construction of the new building has begun with the support of the Aliyev Foundation of Azerbaijan. And only this morning we inaugurated a new development project which has lead to the significant expansion of a plant in Zalaszentgrót. And so congratulations also to the people of Zalaszentgrót!

Ladies and Gentlemen,

To begin the assessment of the tasks that stand before us, let us first remind ourselves of the objectives we set ourselves four years ago. Almost four years ago, we said that although the country is in bad shape, Hungary cannot be put to ruin to such an extent that if we work together, we will be unable to set it back on its feet. We undertook to clear away the debris of the past and to work together to build a strong Hungary. We said that this requires that we not allow simple circumstances to dictate our future. What we need, instead of foreign tutelage and crutches, is to finally stand on our own two feet again. We undertook to break with the defeatist, "we won't succeed anyway", "let's dare to be small" attitude of the past.

Fellow Members, Mr. Speaker,

In, 2010 we received a historical opportunity that it was our duty to fulfil. And today it is clear that we could not have completed a fraction of the work we have performed since then without our constitutional, parliamentary strength: the unity that lies in our two-thirds majority mandate. I would like to thank the voters of Hungary for having supported the renewal of Hungary during the past four years, despite the difficulties caused by the crisis. It is only through the efforts and solidarity of the people of Hungary that we have only been able to realise our joint achievements, based on which we can now confidently say that the country is in a better state and is performing increasingly well. The foreign trade and budget balance continue to improve uninterruptedly. It has been 40 years since inflation was this low in Hungary. it has been decades since the public utility charges paid by Hungarian families has decreased, and this is perhaps the first time in the past 25 years that we can guarantee that the budget deficit will not increase even in an election year. Employment has increased in Hungary, and what's more, it has achieved a historic high: over a quarter of a million more people are working now than there were four years ago. I would like to remind you that in 2010, three million six-hundred thousand people out of ten million were working, and only one million eight-hundred thousand people paid taxes. Even a secondary school student knows that this can only lead to economic and financial collapse. In contrast, the number of people in employment has increased by one-hundred thousand in the last year alone, and in fact there are tens of thousands of open jobs available. The employment rate for women and young people has increased for the first time in ten years. Parallel to these developments, the unemployment rate has fallen by a further 1.5 percent and currently stands at around 9 percent, which is still high. It is still high and is still far from what we want to achieve, but it is decreasing constantly and unmistakably. What is even more encouraging is that the rate of improvement is also increasing. Very few countries within the European Union can claim this today.

Ladies and Gentlemen,

Not only has the employment rate improved, but so has the appreciation of work. The second highest increase in the minimum wage within the European Union was introduced by Hungary. The average wage has increased by 10 percent during the past few years. And so the facts show that Hungary is performing better. Even those foreign analysts who are usually most critical of us predict enduring growth for the Hungarian economy, in addition to which the majority are predicting higher growth that we ourselves. The economic success, the determined governance and the politics that once again centres on improving the people's everyday lives has not only brought changes when it comes to economic matters. During the past few years Hungary was also capable of renewing its way of thinking and its attitude to life, in spirit, if you will. It is this spiritual renewal that provides the final explanation for our successes. Not even the materialists should ignore this fact, because it is from this spiritual renewal that we gain the strength and courage for the tasks ahead. It is also the origin of our ability to work together in solidarity. This is why we have been able to rise above individual interests and party politics. This is why we are capable of creating national unity while also preserving the values represented by diversity. Remember the great Danube flood! There were no right and left wing people, not city and rural folk there, and not even in-border and cross-border Hungarians, no young and old: only Hungarians working hard to defend their country and each other. And remember the solidarity which came about to combat the bankers, Brussels and multinational monopolies! We had to fight difficult battles to tax the banks and the multinationals, and also to defend the constitution. The very least I can state, Ladies and Gentlemen, is that today, Hungary is no longer afraid of anyone. They may attack us and they may threaten us, but it stands up for itself and it also stands up for the people of Hungary. Even when it is heavily outnumbered.

Ladies and Gentlemen,

This new Hungary no longer shies away from arguments and struggles. It stand up for its interests and is even prepared to fight for them, as is fitting for a viable country that is also strong in spirit.

Ladies and Gentlemen, Mr. Speaker,

I would also like to remind you that we not only stood our ground in debates and conflicts. We have also strengthened our old alliances with NATO and the large countries of Europe. We are establishing new economic and trade relations and cooperation throughout the world. We have entered the struggle to forge new cooperative ties and achieve economic expansion. We have opened new trade centres and have succeeded in concluding important agreements. During the past six months alone, we have held government negotiations at the highest levels in India, Japan, Russia and Turkey, and will also be doing so in the upcoming months in China and Saudi Arabia. These cooperative ties are what guarantee Hungary's further growth and economic success. Our goal is for one third of Hungary's exports to target non-European countries by 2018. In view of the current figures, this is a somewhat ambitious goal, but it is not unattainable.

Ladies and Gentlemen, Fellow Members,

This is where we stand today. It is my firm belief that everyone can now see – and if there is debate on the subject it is more out of habit – that Hungary is performing increasingly better year by year. I can summarise our current situation by saying that we have succeeded in putting behind us the despondency and we have succeeded in putting behind us the hopelessness, fragmentation and dissention caused by the previous bad governance; in other words we have succeeded in putting behind us the recession. As I see it, this renewed Hungary once again has a future. It has a future because its economy is growing in a stable and sustainable manner. It has a future because its self-esteem and self-confidence is growing, because it increasingly believes in its own strength. And it has a future because, as a Central European country, it belongs to a region that in the upcoming period will be the engine of European economic growth. Those in the world who have an eye on Europe are already treating this as fact. We still have a lot of work to do, however; we have a lot to do. We still have to work hard to achieve all of our objectives. We know that we must continue to create more and more jobs. We also know that we must make further efforts to maintain long-term, stable and secure growth. And we also know that, if we would like to be among the winning nations in the post-crisis world, we must continue to increase Hungary's competitiveness.

Respected House,

The challenge we face is to continue to improve the standard of living of the people of Hungary so that every single citizen of Hungary is able to exploit the opportunities that we have created through hard work and our joint efforts. The most important instrument at our disposal to achieve this today is to reduce energy prices. Houseless and the business sector both need cheap energy. Low utility prices make possible a secure life for every Hungarian family, and cheap energy makes Hungary competitive with regard to foreign investment and the international struggle for markets. Our goal is for the Hungarian energy supply to be the most competitive. In other words: the cheapest in Europe. If we succeed in achieving this, the number of jobs will increase, Hungarian enterprises will gain strength and foreign investment will continue to increase.

Fellow Members,

The European Union, as we have become accustomed to in the past, is now once again threatening us with infringement proceedings. Let us not beat around the bush, let us be frank: the multinationals, bankers and bureaucrats of Brussels are preparing for another assault against Hungarian families. Many think, and the respected opposition often give voice to the fact, that it was we who declared war on the banks and public utility companies. This assumption requires closer scrutiny, however. Because when we took over helm in 2010, this war was already well under way. It was well under way between the banks and the foreign currency debtors, and between the public utility companies and Hungarian families. And the Hungarians were losing on both fronts. Anyone who did not notice this at the time was either blind or very nearsighted. In 2010, the question was in fact on whose side we, the country's elected representatives and leaders, would enter the ring. And we decided to choose the corner with the red white and green flag. But this is now all in the past.

Fellow Members,
But this is now all in the past. What I can tell you today is that we still cannot sit around twiddling our thumbs. I can report that, for their part, the Government and the government parties are ready. We will defend the decrease in public utility prices. We are strong, strong enough to stand up for ourselves and our interests. And so I would ask, and in fact politely but firmly expect, every honest Member of Parliament who is committed to Hungarian families to support Hungary in this struggle.

As a first step, Respected House, we must create the legislative conditions for the third reduction in public utility prices here, in Parliament. The bill is already before you, and if you wish, you can vote on it tomorrow. According to the urgently submitted bill, the price of household gas would be reduced by 6.5 percent from 1 April, the price of electricity would decrease by 5.7 percent on 1 September, and the price of district heating would fall by 3.3 percent on 1 October. Secondly, we must take up the gauntlet with regard to the European Union's infringements proceedings. Just as we have done so far, we must again close ranks with as much unity as possible, and we must show that we are not prepared to accept injustice or double standards and will not succumb to a politics that favours greed and extra profits. An thirdly, we must create the operating conditions for non-profit energy service providers in Hungary. This requires the National Assembly to adopt legislation on non-profit energy service providers, based on which the Government must establish the country's first non-profit energy service provider. Meaning we must jointly create laws and regulations that protect the interests of the people of Hungary. This is what Hungary expects form us and we are justified in expecting Parliament to also grow up to the task, stand up for them and protect their interests and achievements. They are right; the people of Hungary deserve this, they have worked hard for it over these past four years.

And this issue, Ladies and Gentlemen, is not only about Hungary. Europe must eventually recognise that it can only compete with the world's other emerging regions, such as America and Asia, if it drastically reduces energy prices. I would recommend that everyone reads the report on the state of the European energy market published by the European Union from which you will find out that in the United States and certain Asian countries, energy is two or three times cheaper than it is in the European economies. Expanding competition, Ladies and Gentlemen, is not in itself enough to drastically reduce energy prices. It will not achieve the required result. And accordingly, drastically reduced energy prices can only be achieved through price regulation. There is no other way. And so we are proposing a new solution to the whole of Europe, which can decide to either accept or not. We, however, cannot give up our own interests and we cannot forego our competitiveness. Ceterum censeo: we must continue the battle to reduce public utility prices.

What I ask from all of my fellow Members of Parliament, irrespective of party affiliation, is that you stand up for the reduction in public utility prices. Because Hungary once again has a future; do not allow anyone to take that away from the people of Hungary.

Thank you for your kind attention.

(Prime Minister’s Office)