Márta Frauenhoffer: Welcome, dear viewers, good evening. Today has been a special day in Zalaegerszeg, as was reported early this morning by the Prime Minister of Hungary, who arrived here in Zalaegerszeg to inaugurate the Next Gen production building. This is Flex’s new production facility. The 10,000-square-metre project was realised with the support of the Hungarian government. Following the opening, the Prime Minister met with the leaders of Zalaegerszeg at the City Hall, and now we have the opportunity to interview him. Good evening, thank you for accepting our invitation here in the City Hall meeting room.
Good evening. It’s been a busy day, but thank you for the opportunity to talk to you.
Prime Minister, you’ve visited Zalaegerszeg many times, and always in connection with some major event. How significant is the investment in Flex’s newly completed production facility? On your social media page early this morning you wrote that this is a big day for Zalaegerszeg.
Well, we’re talking about a significant investment in terms of the entire national economy; so it has national significance, and accordingly its local significance is many times greater. Flex is a company registered in Singapore, but it’s actually an American company that’s been present in Hungary for a long time, with more success than failure. We’re talking about an electronics manufacturer with a very wide range of products, and it’s always at the global forefront, whatever it manufactures. So here there are no second-rate or used machines from somewhere else – everything here is always top of the line. That’s still the case today, as I have personally verified. The technology that’s now been installed here in Zalaegerszeg is among the best in the world – there’s nothing better today. So in this field, in this type of industry, in this sector, there’s no factory in the world today that’s more technologically advanced than the one they’ve created here in Zalaegerszeg. Ninety-five to ninety-six per cent of the products manufactured here are exported. Flex employs more than six thousand people in Hungary, which means it provides a livelihood for that many families, four thousand of whom live here in Zalaegerszeg. So if this factory weren’t in Zalaegerszeg, it would be sorely missed – not only in terms of tax revenue for the city, but also because those four thousand people – those four thousand well-trained people – wouldn’t have jobs here in Zalaegerszeg. Flex is therefore a strategic company for the future of Zalaegerszeg. They’re likeable people. I’m glad that there are Hungarian managers at the helm of the factory, and I’m also glad that the CEO – or rather the global deputy, as one has to say in this complicated world – said that the decisive reason for coming to Hungary was the people: the workers and engineers who work in the factory, and the other people linked to the factory. So Hungary is a friendly, welcoming place, they were happy to come here, and they’re happy to develop here. This is perhaps Flex’s biggest international development in recent times. And since everything they manufacture here is linked to the modernisation of car manufacturing, to electromobility, to the transition to hybrid and electric cars, we know that this won’t be a temporary development: it will be here to stay, producing essential components for the next generation of car manufacturing. So what’s happened here isn’t just that a good investment has been made, but that these jobs can be considered secure for decades, possibly for many decades.
At the same time, it also offers new job opportunities here in the city. Flex was already a major employer in Zalaegerszeg, and now it’s expanded further. And not the least important factor is that the Hungarian government supported this investment.
I spoke with some of the people who work here, and they were very kind and friendly: the people I spoke with were all skilled, without exception; I’d say that the majority of the people working in the factory – either technicians or engineers – are highly qualified. And when I go somewhere, I look at the average income and see how it compares to the national average – so I like down-to-earth, factual things. Those who will be working in this factory will earn close to – or perhaps even equal to – the average income in Budapest. This isn’t usually the case when comparing the countryside with Budapest. But those who work in this factory will earn an income on a par with Budapest.
But such...
Yes, we gave money, and yes, it’s the Government’s job to support such investments – because otherwise where would people work, and how would Hungary have world-class technology, if not through cooperation with such large factories? Flex has its own history, but every sector has a history, because first they come and manufacture. That means they explore the terrain: are the workers decent, is the workforce disciplined, can you rely on them, is there intellectual capacity, is the regulatory environment supportive, is the Government hostile or friendly? They explore all of these things. They manufacture for a year or two, then they start bringing in services, then technological innovations, then developments, and finally research. So you have to go through all of this. And now we’re in a good position at this company, we’ve already climbed more than half of the steps, now we’re moving further up, and we’ll reach the highest level. Nowadays it’s pretty much only technicians and engineers who work here. The factory is highly automated. Of course, I don’t understand this, but even for someone like me who doesn’t understand it, the technological level represented here is impressive. The people who stand at the machines, operate them and monitor them would be able do such work anywhere in the world. So the people standing there are so well trained that they could easily do the same work in Los Angeles, Tokyo, Shanghai or Berlin.
Prime Minister, you’ve visited ZalaZONE and the surrounding area several times and have seen how in recent years that northern industrial park has become very busy. I don’t want to sound greedy, but can we expect more large investments like the Flex announcement now?
Well, the whole ZalaZONE story is an exciting one. At the beginning, I wouldn’t have given a penny for it if Minister Palkovics hadn’t been so obsessed and such a local patriot – because he came up with the whole idea of the test track himself and thought that maybe it should be brought to Zala. I said to him, “László, I know Zalaegerszeg, there’s no precedent for this there. There are a lot of things, starting with the dairy plant… I know a little about the economic life of this city, but this isn’t possible. And as far as I’m concerned, creating something like this from scratch is hopeless.” He said I was wrong, that it was possible, that I should give him the job, that he’d do it – and he got the job, becoming a government commissioner. Of course from time to time he asked for money – more than I’d expected, but that’s secondary now, because the point is that he actually did it. So I think this is proof that it’s not just about the country’s potential, but that even when you don’t see the country’s potential, if there are determined people who are willing to devote a few years of their lives to it, they can achieve something remarkable from nothing. ZalaZONE is located in the middle of nowhere, surrounded by cornfields, or whatever was there when I first visited. We’re now discussing military industry developments, which I hope will be successful, and will further expand the industrial capacity there.
Our Member of Parliament often says that the test track attracts investors like a magnet, and it really seems that this park is filling up.
The last time I was there, Bosch was there too – so it’s working. In the end, Minister Palkovics will be proven right: it can be done.
So the economic side of things is fine, and not so long ago – just last week to be precise – it was announced in the Hungarian Official Gazette that major developments in Zalaegerszeg are also expected in the field of health care. With an investment of nearly 10 billion forints, construction of an internal medicine block in the grounds of the Zala County Szent Rafael Hospital can begin. This has already been published, with the decision appearing in the Gazette. Prime Minister, when can we expect this development in Zalaegerszeg to start?
We’re at the end of a government term, so according to the Constitution there will be an election in April–May 2026. Soon four years will have passed, we have to settle the accounts, and I’m also coming to settle my account. So here too, we sat down with the Mayor and reviewed what we’d undertaken, what I’d personally undertaken, what we’d accomplished, and what we hadn’t. Health care is part of this, but it’s a much bigger basket than that. And the appraisal we conducted was mixed. I’d made a personal commitment to integrate all county-level cities into the country’s highway, road and transportation system. We’ve pretty much finished this everywhere, except here in Zalaegerszeg. There’s a reason for this, but I had to admit that the first decision we made wasn’t a good one – even though I’d thought it was technologically feasible. First we decided to build a raised highway or motorway across Kis-Balaton [“Little Balaton”], which wasn’t a good idea. I think we made the right decision to cancel that – but it won’t help Zalaegerszeg. So now I’ve agreed with the Mayor – in the presence of Minister Lázár, who’s the minister responsible for the area and who’s also delivering the funds – that we’ll connect the city of Zalaegerszeg to the highway network from two directions: from the north and from the south. Since a motorway is being built on a concession basis on the Szombathely–Körmend axis, we’ll also be announcing a new concession to complement this – not as part of it, but as a supplement, as agreed with the Mayor. This will connect Körmend and Zalaegerszeg. And although it probably won’t be a concession, we’ll also connect the city of Zalaegerszeg to the highway system from the south, from Nagykanizsa. So that’s in order. On Route 76, which we can’t widen along its entire length due to the Kis-Balaton, we’ve marked the sections where three or four lanes will be added. So, although I undertook to complete this during the current government term, that wasn’t possible; we missed the deadline, but we haven’t given up on the goal – it will happen, and the relevant plans and tender invitations will be available soon. I owe the Mayor a turbo roundabout development, namely the Tesco roundabout, which currently leads nowhere. Its surroundings need to be put in order and it needs to be sensibly integrated into the network. Today the Mayor received 1.6 billion forints from me for this, which will make it possible: the Tesco roundabout will be transformed into a turbo roundabout. And there’s also a dilapidated county cultural centre, the demolition of which we’ve long supported; I’ve promised or undertaken to do so, at a cost of around 500 million forints. The Mayor knows what his plans are for that area, and we’ll do it. The government decision on both the roundabout and the demolition of the county cultural centre, as well as the necessary funds, will probably be made tomorrow – and if not tomorrow, then at the government meeting in two weeks’ time. That’s one package. The second package is the ambulance station. The public procurement documents have been written, and some time ago I agreed that we’d build a decent ambulance station. The public procurement process is currently being advertised, so it’s underway. It will cost 3.6 billion forints, the money’s been set aside, and so that’s fine. A major development needs to be carried out in Zalaszentiván: the “delta track” for the GYSEV/Raaberbahn railway company, so that a logistics centre can be built there. Today Minister Lázár said that he’ll take care of this. And now the hospital. There we’ve built the cardiac surgery block or department, we’ve built the ophthalmology department, and we’ve built the diagnostics department and the central operating theatre block. We’re lagging behind in one area, and that’s the internal medicine block. This is no small matter, because it will cost at least 80 billion forints, and possibly as much as 100 billion – but we’ll do it, and we’ve shaken hands with the Mayor on this. This wasn’t a cheap trip.
But we can say that for Zalaegerszeg the negotiations were successful.
Well, my job is to help everyone. So if someone needs help, wants something, if there are serious people who seriously want something, they have plans, they have energy that they can mobilise, then the Prime Minister’s job is to provide energy where there’s none – and where there is energy, to let people find their own way. The best way to open doors is to provide financial resources, because that’s the only way it’s possible. Zalaegerszeg is an important city, a success story for Hungary. I’m a living witness to this. I was a soldier here in the early 1980s, I was also here at the end of the 1980s, and I’ve been here many times since then. I’m a founding member of Fidesz here. We owe a debt of gratitude to Bandi Gyimesi, who was the director of the archives at the time, and who allowed us to found Fidesz in one of the back rooms. So I have many personal, fond memories of Zalaegerszeg, and I feel a sense of obligation to the city. Many people in this city are familiar with the name Ferenc Zumbok, who was my colleague when we formed our first government. You can count on me, I’m at your disposal, and these things will happen.
There are many wonderful developments in store for Zalaegerszeg in the future. Not so long ago, however, the Association of Cities with County Rights held a meeting here in the city, and several local governments raised the issue that they’re experiencing difficulties with their budgets, as they have a lot of costs – with the financing of public transport affecting large cities the most. Prime Minister, do you see any way of easing the situation for local governments, including Zalaegerszeg?
I have the utmost respect for the mayors of cities with county rights. They’ve taken on a difficult task, assuming responsibility for the lives of tens – or even hundreds – of thousands of people; so we owe them our gratitude for their willingness to work in the public interest. But I must tell them that everyone has problems – you too, me too, small towns too, cities with county rights too. So for me, saying that we have problems isn’t enough. Who doesn’t, my dear friend? I could talk at length about the problems facing the Hungarian economy – from the war to the miserable Brusselite bureaucrats who are pressuring Hungary. So the question is not whether we have problems, but how we want to solve them. Their proposal isn’t a bad one: the Government should help wherever it’s possible to take over public transport from a city with county rights. That’s not a bad direction to take. We’ve done this before – most recently, we took over the operation of public transport from the City of Debrecen, because it would have crushed them. So the Mayor has brought this up here too. For him, this amounts to between one and two billion forints. I told him that there would be no change in this before the election, but after the election we’d be ready to review not only public transport, but also local governments’ list of mandatory and voluntary tasks. The distinction between what’s mandatory and what’s voluntary was established a long time ago and hasn’t been touched since. Reality has moved on, and today’s legal regulations no longer reflect real life. Let’s sit down and calmly discuss what local governments are required to do, for which they receive funding, and what’s not mandatory but would be desirable and voluntary – with the Government shouldering some of the cost if possible. So my proposal to the mayors is a deeper and more comprehensive municipal financing arrangement, rather than just taking over transportation and public transportation in a “firefighting” capacity. This will also be part of the action plan that we’ll need to discuss after the election.
But even before the election, ordinary people can feel that, despite the difficulties, their lives will perhaps always be a little easier and they’ll always receive more help.
Well, it depends on who...
Here I’m thinking of families. The Government places great emphasis on families and the elderly. Not long ago we heard the news that, following the thirteenth month’s pension, the elderly will also receive a fourteenth month’s pension, and that family benefits will increase.
Yes, yes, that’s true. Yes.
There was one increase this year, and it will continue in January. Can the Government keep these up?
All of this is true, but I don’t want anyone to be lulled into believing that life will suddenly become easy. No, life in Hungary has always been difficult, it will never be easy – you always have to work. This is a country that had all its resources – all its raw materials and natural resources – taken from it at the end of the First World War. This country lives off what can be created through work – either through physical strength or intellectual ability. That’s how it is. If we don’t work, this country will collapse in an instant. And work is difficult, because we’re competing to stay afloat. So I can’t promise anyone an idle, thumb-twiddling, work-free but well-paid life or job; so in that sense life won’t be easier – but work will have meaning. That’s what I’ve committed to. Since 2010 everyone can see that we’ve created one million jobs. I’ve taken on the task of ensuring that honest work will be increasingly recognised, that work will have meaning, and that extra effort will have meaning. I stand by that. As you say, this includes families. And we’ll be able to double the tax allowance for families with children: half of this has already been implemented, and the other half will be implemented from 1 January. This is a matter of honour, and I’ll do it, because if anyone needs help, it’s primarily families and parents raising children. This is especially true for women, because in Hungary women are the ones who hold the family together. What’s more, in this modern world, ever more of them have to work: they can’t stay at home, because the family needs a second income. And we want to help them: if they’ve given birth to at least two children, we want to help them by making them tax-exempt – exempt from personal income tax – for the rest of their lives, regardless of their children’s age. I’d like to strengthen the existential security of women in Hungary. If the position of women within the family is strengthened, I’m convinced that this will lead to more children and stronger families. So these measures, such as tax exemption for GYES and GYED [child care allowances], to give just one example, have already been implemented. Strengthening families therefore remains the Government’s most important commitment, and as long as there’s a national government, there will also be a family-friendly government, and – despite the war and all kinds of problems in the world – we’ll carry out what we’ve committed to in this regard.
The other priority is pensioners.
Well, what kind of country are we? We’re a country that’s been torn apart several times. Someone rebuilt it – and Zalaegerszeg could tell you a thing or two about that. So this is a country where young and middle-aged people need to understand that this country wouldn’t exist if the generation before them hadn’t done their job properly. So it’s not just that they’re entitled to a pension because they deserve it, but that we give it to them gladly, because we know that without our parents and grandparents, the country simply wouldn’t exist – it would be a pile of rubble. And it’s not like that because they did their job with integrity. Pensions must be paid, and pensions must be increased if the economic situation allows it – and things must be done in such a way that it does allow it. The thirteenth month’s pension was taken away from them under the Gyurcsány government. Taking it away from those who supported the country with their work, who carried it on their backs, was the worst kind of dirty trick. It wasn’t fair. We managed to give it back. And in the meantime I’m trying to negotiate further pension increases. We’ve just decided to introduce a fourteenth month’s pension: the first weekly instalment of it – because we can introduce it gradually – will be received in February, as part of January’s pension. This is how I’m trying – and the Government’s trying – to help everyone to whom we’re grateful for past achievements, or who are the future, such as children, families and women.
In addition to all this, I think that everyone’s affected by the reductions in household energy bills – especially during the winter season. Can they remain in place in the long term?
Here, too, we have to be crafty and street-smart, because we have a significant number of enemies. And now, for reasons that can’t be explained here, the Europeans want to go to war with Russia. For the time being, they’ve sent Ukraine ahead, but their stated intention is to defeat the Russians in a war – if possible with the Ukrainians, but if the Ukrainians aren’t up to the task, then even with Europe’s direct involvement. We’re seriously threatened by war. As a result, Europeans are continuously trying to sever economic ties with Russia. But if we can’t import gas and oil from Russia to Hungary, we won’t be able to maintain our reductions in household energy bills. We’ve had to defend ourselves against American sanctions, which we’ve now avoided through negotiations with the US. There will be sanctions on Russian oil and gas, American sanctions, but they won’t apply to Hungary – we’ve escaped that. Now we need to negotiate with the Russians so that they’ll confirm that they’ll deliver the previously agreed quantities of oil and gas to Hungary – even though fighting is continuing, and in this war some of the Russian refineries are being heavily bombed. Negotiations regarding this confirmation are underway, and on this I’d like to receive a guarantee from the Russians. After that, we’ll only have one thing left to do: to ward off the European sanctions that Brussels wants to impose on Russia from 2027. That will be a problem for 2027. That’s how we live.
Prime Minister, thank you very much for your time.
Thank you too.
Dear viewers, thank you for your patience and attention. Thank you for staying with us, and please continue to do so. See you again soon!