A very interesting article and great interview at Portfolio.hu today.
What makes it of interest is that for once you have a politician talking out of their mouth instead of the usual other end. The Hungarian government is always described as ‘centre-right’. Forthright might be more accurate.
Remember in the wake of the Greek bail-out, when when Hungarian President Orban nearly caused a melt down, by mentioning that he thought it quite possible Hungary could ‘go the same way as Greece’? Well this time it’s the turn of the vice president, Mr Lajos Kosa. Personally I’d like to say, from what I’ve heard so far, I like the sound of these people. They can come to dinner.
Mr Kosa was discussing the abrupt departure of the IMF from Budapest and the breakdown in negotiations. Actually, I think it was the notion of ‘negotiation’ that might have been part of the problem. Mr Kosa obviously felt his government, as a duly elected government of a free people and sovereign nation, was entitled to have an opinion and to ‘negotiate’ with the IMF and EU. The IMF, however, is famously of the Brian Clough school of negotiating. As the great man once described it – and I paraphrase – ‘we sit down and discuss the other man’s ideas for a half an hour at the end of which we agree I was right to start with.’
Anyway, Mr Kosa could certainly give some lessons to some of our (GB) pathetic Uriah Heep cringe-alike politicians. Here is some of what he is reported to have said. (All quotes from Portfolio.hu).
“…we are elected by Hungarian voters and not the Wall Street Journal” – One nil
“We must represent Hungarian interests even if they are not used to that in Brussels,” No chance of stopping that one. Goalkeeper never even saw it. Two Nil.
“We have politely but restlessly explained […] that when the economy goes bust and the budget is about to collapse due to the previous government’s mistakes you cannot have austerity measures affecting only the low-income, average people, while the banks in Hungary have the highest profitability in the region.”
Curled into the far post. Three nil!
He went on to observe, on the subject of Hungary’s desire to tax its banks, which all happen to be owned by large and even more largely insolvent, foreign banks, – that the banks are all very proud to claim they are part of Hungary when on the up-swing, but don’t want to share any of the burden on the down-swing.
By and large those are the opinions, expressed by an elected representative of the Hungarian people on behalf of those people, that prompted the IMF and EU to take their ball and go home in a huff.
Finally Mr Kosa showed that he is not acting nor speaking out of ignorance or inexperience. He clearly understands the dynamics of the situation Hungary and the IMF are in. “The IMF does not want to look soft,” he said. In his view, measures such as the bank tax raises much less criticism when the idea comes from the German Chancellor, but they don’t like it when “a guy named Orbán […] messes with them”.
Bravo that man!
Hungary's a fascinating country, that seems to throw up more than it's fair share of smart individuals capable of beating cynics at their own game including George Soros and John Von Neuman, (who I first learnt about from my dad's videos of the 'Ascent of man'; it's a small world!)
I used to teach maths so one thing that struck me about the country is that they don't teach any written maths until secondary school focusing on mental maths until then. I suspect this makes Hungarians a bit more self aware about financial realities than some other countries…
Von Neuman and Morgenstern – The Theory of Games and Economic Behaviour. THE founding document of modern economics and finance and the Uber text for how the Vietnam war was prosectuted.
They met in Vienna and then again at Princeton.
Edward Teller was also Hungarian. The man who ran the US nuclear war effort while 5 Presidents came and went. I think he can be said to have spent more money than any other human being. Maybe Obama, Paulson, Geithner and Bernanke are on course to out do him.
From a country that has given us Liszt and Bartok comes more sweet music to our ears.
Now that Hungary has spoken like a true democracy, let's hope that other countries will follow.
But who will be next? I think the Greeks are still in with a chance.
I remember noting the FT made Von Neuman their 'Man of the century' ten years ago although EVEN THEY seemed a bit uncomfortable about what he represented!
Von Neumann was a birlliant polymath. But he was also very right wing in many of his attitudes. And he was very influential. He's not my favourite.