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In Hungary, large agricultural areas that receive EU subsidies fall into the hands of oligarchs close to Orban. Against political support. And the prime minister threatens to veto if the EU imposes sanctions on anarchy.
They probably didn’t do it on purpose, but it is a fact: the European Union has partly funded the establishment of authoritarian government structures in Hungary. Much of the country’s former farmland is now in the hands of businessmen close to Orban. They are the ones who benefit the most from European subsidies, at the expense of other farmers.
In this way, Orbán managed to systematically expand his influence in rural areas, where the most loyal part of his voters live: in 2018, his Fidesz party won between 80 and 90 percent of the votes in the towns and only 38 percent in Budapest.
Dubious privatization deals: the basis of the abuse
In 1998, Orban became prime minister for the first time and began reaching out to large landowners. In 2002, he auctioned twelve large state farms. At the time, Orbán’s confidants benefited from privatization, said György Rasko, a former Hungarian agriculture minister. This was not a public auction, it was only open to “friends.” They received the land for a period of 49 years, at an extremely low annual rent of 50 euros per hectare. “Even then, by the way, it could have been predicted that with accession to the European Union in 2004, European subsidies would be granted, which would be up to five times the rent.
In 2010, Orban returned to power. In 2015, it distributed state lands in a long-term concession. Officially, they were to be handed over to farmers who have cultivated them for a long time. In fact, however, the areas were so large that only a few wealthy Hungarians had enough. They have long been preparing for this privatization and have obtained favorable loans from the state, explains agricultural expert Noemi Gonda, who works at the Swedish University of Uppsala.
Money for influence
The government has denied the accusations. Budapest refers to the fact that no one in the country has the right to own more than 300 hectares of land. However, this restriction is being circumvented with the help of family members, Gonda said. “If you look in the cadastre who acquired state lands during this operation, you will mainly find members of the oligarchs’ families: their wives, children, cousins.”
The owners receive European grants, which are distributed by state institutions. According to Hungarian lawmaker Akos Hadazi, who left Fidesz and became independent, the distribution of funds is decided by regional committees, most of which belong to the ruling party. They influence mayors, he said. “They say: well, you will receive European grants. But under two conditions: the first is that Fidesz wins in your village. And the second: We say which companies win the orders.
Among the winners is the family of Victor Orban. His father owns a quarry, which receives money from European projects and in 2018 alone he made a profit of 41 percent.
Orban fears a veto of sanctions imposed by Soros
So far, the European Union has been unable to counter such practices. But the things can change. If the Member States do not respect the rule of law, the European money for them will be suspended. That is why the representatives of the EU governments and the European Parliament have agreed. But such a decision can only be made unanimously in the Council. And Victor Orban has already threatened to veto the new EU budget. In a radio statement, he went even further. Orbán said the idea for such economic sanctions came from billionaire George Soros, who years ago proposed that they be imposed on countries that do not want to accept migrants. Now EU forces under Soros’s influence were putting pressure on him, apparently in the name of the rule of law.
With recent actions, Orban has shown that he has no intention of defending the rule of law. On Tuesday, he took another 90 days of extraordinary powers from parliament, and yesterday the majority made changes to the vote favoring Orban’s Fidesz party. In addition, Orban wants to further restrict gay rights and plan changes to the Constitution. that are in line with their own homophobic views. It is proposed that an article of the Basic Law be amended as follows: “The mother is a woman, the father a man.”
Hungary
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