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"Last December, Angela Merkel brokered a controversial deal for the EU, resolving the crisis that Hungary’s and Poland’s veto against tying EU funds to rule-of-law generated. The deal unblocked the budget, including the Next Generation EU funds, a crucial step for countries devastated by the pandemic’s economic impact. However, it also let Orban off the hook, allowing him to continue down the illiberal path. Though Merkel’s deal allows for sanctioning the violation of the rule-of-law — an important step ahead — it also clarifies that the rule-of-law criteria do not include most things we would typically associate with the rule of law. Orban’s attacks on civil society, the freedom of the media, his takeover of independent institutions can continue. The deal only concerns corruption related to EU funds. Furthermore, it will not be applied for the next two years, greenlighting Orban’s illiberal politics for the upcoming 2022 elections. Merkel’s deal made it clear that the EU is, first of all, a project of economic cooperation. It is willing to protect European financial interests — like it also did when it put down the Greek government’s democratic effort to end austerity in 2015 — but upholding democracy is secondary. Though EU membership brings many benefits, democracy is not one of those. Countries and people interested in maintaining the power of the people have to secure democracy for themselves. Thus, is it is all the more important to understand how Hungary’s democracy collapsed and draw the lessons for the fight against authoritarianism. This is the central topic of my recent book, The retreat of liberal democracy (Palgrave, 2020). Businesses and illiberals supporting each other Despite the frequent misunderstandings, domestic and transnational elites are crucial pillars of Orban’s regime. International media often reports about corruption in Hungary. Indeed, the wealth of Orban’s friends and several members of his family is growing fabulously. However, the beneficiaries of Orban’s national-populist neoliberalism go beyond the corrupt cronies: the upper-middle class, national capital, and transnational corporations in the export sectors profit from it. German carmakers are the key engine of Hungarian economic growth, contributing to the government’s legitimacy. Together with their Hungarian suppliers, they account for 10 percent of Hungary’s GDP. Orbán does everything to keep them satisfied. Based on the subsidies in proportion to jobs, Audi, for example, has received four times as much aid from the Hungarian government as from the German state in the 2010-2014 period. Just a few days after Merkel announced her controversial deal last December, the Hungarian government revealed that it will cover 30% of the costs of a new Mercedes car plant in the country. The same week, the government also trumpeted that it will build one of Europe’s most modern military factories manufacturing German Lynx tanks in Hungary. Hungary has been one of the most important buyers of German military exports under Orban. Analyzing the direct financial subsidies allocated through the government’s discretional fund, I found that it primarily benefits transnational corporations. Between 2004 and 2010, these discretional subsidies’ total value was $626 million; this doubled to [...]"

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djohn9788

@djohn9788 • 3 Years Ago

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"Last December, Angela Merkel brokered a controversial deal for the EU, resolving the crisis that Hungary’s and Poland’s veto against tying EU funds to rule-of-law generated. The deal unblocked the budget, including the Next Generation EU funds, a crucial step for countries devastated by the pandemic’s economic impact. However, it also let Orban off the hook, allowing him to continue down the illiberal path. Though Merkel’s deal allows for sanctioning the violation of the rule-of-law — an important step ahead — it also clarifies that the rule-of-law criteria do not include most things we would typically associate with the rule of law. Orban’s attacks on civil society, the freedom of the media, his takeover of independent institutions can continue. The deal only concerns corruption related to EU funds. Furthermore, it will not be applied for the next two years, greenlighting Orban’s illiberal politics for the upcoming 2022 elections. Merkel’s deal made it clear that the EU is, first of all, a project of economic cooperation. It is willing to protect European financial interests — like it also did when it put down the Greek government’s democratic effort to end austerity in 2015 — but upholding democracy is secondary. Though EU membership brings many benefits, democracy is not one of those. Countries and people interested in maintaining the power of the people have to secure democracy for themselves. Thus, is it is all the more important to understand how Hungary’s democracy collapsed and draw the lessons for the fight against authoritarianism. This is the central topic of my recent book, The retreat of liberal democracy (Palgrave, 2020). Businesses and illiberals supporting each other Despite the frequent misunderstandings, domestic and transnational elites are crucial pillars of Orban’s regime. International media often reports about corruption in Hungary. Indeed, the wealth of Orban’s friends and several members of his family is growing fabulously. However, the beneficiaries of Orban’s national-populist neoliberalism go beyond the corrupt cronies: the upper-middle class, national capital, and transnational corporations in the export sectors profit from it. German carmakers are the key engine of Hungarian economic growth, contributing to the government’s legitimacy. Together with their Hungarian suppliers, they account for 10 percent of Hungary’s GDP. Orbán does everything to keep them satisfied. Based on the subsidies in proportion to jobs, Audi, for example, has received four times as much aid from the Hungarian government as from the German state in the 2010-2014 period. Just a few days after Merkel announced her controversial deal last December, the Hungarian government revealed that it will cover 30% of the costs of a new Mercedes car plant in the country. The same week, the government also trumpeted that it will build one of Europe’s most modern military factories manufacturing German Lynx tanks in Hungary. Hungary has been one of the most important buyers of German military exports under Orban. Analyzing the direct financial subsidies allocated through the government’s discretional fund, I found that it primarily benefits transnational corporations. Between 2004 and 2010, these discretional subsidies’ total value was $626 million; this doubled to [...]"