POPULIST PARTIES AND LEADERS OF HUNGARY

Written by: Churchill II Deocampo

Searched by: John Rey Luis

What is populism?

There are many definitions of populism. Some would say that it is political reasoning,
a strategy in politics, a style in politics, a frame of discussion, or the combination of these
factors. Despite the diversity of its definition, these terms all define populism as set of ideas,
despite its common disadvantage (Csehi, 2021). Cas Mudde, a Dutch political scientist,
defined populism as an ideology that believes society is divided into two homogenous and
hostile groups, the pure people and the corrupt elite and that politics should reflect the general
will. (Mudde, 2004). Michael Freeden coined populism as a thin-centered ideology. It
included ideologies whose morphology, conceptual patterns, and groupings were inadequate
to offer the complete answers to the broad range of socio-political issues that the prominent
ideological families had traditionally aimed to supply. Hence, populism is centered on the
people's general will regardless of which political spectrum (right or left) it falls. However,
there seems to be no actual definition of what populism means. The media, academicians, and
politicians define it differently. Moreover, populism's concept is somewhat vague; some will
describe it as an ideology, doctrine, mentality, rhetoric, and discourse (Szabó, 2019).

Populism in Europe

Aside from its ambiguity, populism is not fixed. Hence its meaning requires
revisioning from time to time. It is context-dependent, and it changes with time. Even if a
stable definition of populism existed, it would have to be revised regularly owing to its ever-
changing character (Szabó, 2019). Also, according to David Arter, populism is defined
differently based on different regions (Szabó, 2019), whereas in the context of Europe, the
substance and ideology of populist groups share similar ground. However, they differ greatly
depending on the national causes in each country. Populism is strongly reliant on national and
regional circumstances. Finally, populism is strongly associated with right-wing ideology; in
the past, it was also related to extreme right-wing ideology, fascism, and racism (Szabó,
2019).
 Hungarian populism

Hungarian populism gains popularity and influence during the 2008 recession and the
2015 immigration crisis. Its populist political party is the Fidesz-KDNP, and its current leader
is Viktor Orbán. The nationalist discourse of the current government, Fidesz-KDNP, arose
with the financial crisis of 2008, and it has been strengthening ever since; this evolved to the
point where the Orbán administration openly defies EU regulations and accuses the EU of
endangering Hungary's sovereignty. The 'migrant crisis' of 2015 was a watershed moment in
Hungary's relationship with the EU. While the EU tried to handle the situation from a
humanitarian standpoint, the Hungarian government constructed a barrier along its southern
border to strengthen its defenses against illegal migration (Szabó, 2019).

Populist parties in Hungary

Hungary has two populist parties: the Fidesz-KDNP and the Jobbik. These parties
belong to the right-wing. These parties are both nationalist and right-wing leaning parties.
However, the two have different ideologies, and both have a different typology of populism
(Szabó, 2019). Fidesz's populism is mainly in line with the political populism typology.
Fidesz's philosophy is similarly nationalistic, although the party argues that its primary
purpose is to preserve national interests against foreign forces attempting to seize control of
Hungary and not allow foreign interests to interfere with national interests through European
Union policies (Szabó, 2019). Jobbik, a right-wing populist party, labeled far-right and anti-
Semitic in the past, is another example of a right-wing populist party in Hungary. Jobbik
describes itself as a party of impoverished and nationalist Hungarians who wish to fight
against the ruling elites in Hungary, combat corruption, and return the stolen wealth to all
Hungarians.

Jobbik's populism may be classified as an economic populism (Szabó, 2019). Both

parties are considered to be populist parties. However, the most dominant party between the
two is the Fidesz-KDNP. In the 2018 parliamentary elections, Fidesz-KDNP garnered 49.3%
of the votes, making the party earn 133 seats in the parliament. On the other hand, the Jobbik
party garnered 19.1 votes, gaining 26 seats in the Hungarian Parliament (Szabó, 2019). In the
European elections in 2019, Fidesz-KDNP showed the party's popularity by garnering
52.14% of votes and earning 13 mandates. The Jobbik party, on the other hand, gained only
52.14% of the votes, and the party reached only one mandate, which means that the
popularity of the Jobbik party is diminishing (Szabó, 2019).

Populist leader of Hungary: Viktor Orbán

It is said that the primary characteristic of a populist leader is their charisma. Along
with the majority's desires, the populist leader uses their charisma to become more loved by
the people. Some examples of a charismatic populist leader are Nigel Paul Farage of the
United Kingdom, Marine Le Pen of France, and Donald Trump of the United States. In the
context of Hungary, its populist leader is Viktor Orbán, the current Prime Minister of
Hungary and leading the populist party of Hungary, the Fidesz-KDNP. For Hungarians,
Viktor Orbán became the wise man of the country, redefining Hungary's place in European
affairs and protecting them from oppression, which Hungarians remember well from the
communist period (Szabó, 2019). But Viktor Orbán's charisma comes from his representation
and his ability to see the various tensions in Hungarian society and be knowledgeable of
Hungarian history, namely Hungarians' dread of previous political events (Szabó, 2019).
Viktor Orbán is well-versed in Hungarian society and the desire for security among
Hungarians. Viktor Orbán became a populist leader who influenced European politics by
playing on these sentiments and promised protection to Hungarians (Szabó, 2019).

CULTURAL VALUE CHANGE

Albert Louie Villar Jr.

Most of the modern cultural structure of Hungary is based on 19th century Eastern
European cultural institutions and traditions. This culture was characterized by a peasantry
population that did not or had little access to culture. In contrast, the upper-middle classes
were known for their aristocratic cultural values and traditions; they were the backbone of the
democracy, culture, and economy of 19th to early 20th century Hungary. Also, the state
adopted a westernized identity than that of the Balkans and the East, which helped it cope
with the trauma after World War I, where it only retained a fraction of its former empire with
Austria (Inkei 2007). This was due to the Treaty of Trianon in 1920; this loss of territory and
population gave birth to a collective national psyche of a better past than that of the present,
which was the so-called "Trianon Syndrome" and was widespread prior to 1945 but was
suppressed by the Soviet Domination of the east.
 After the Second World War, the influence of the Soviet Union spread through
Eastern and Central Europe, making most of the states "Sovietized"; most of the cultural
infrastructure and system of Hungary were centralized in a socialist ideological manner,
including censorship and a nationalistic belief. The new regime considered the population as
a mass that should be educated and supported; the government promised funds for cultural
programs so that the population would have cheaper or free access to cultural landmarks,
artifacts, documents, and education. The government banned many people's associations and
organizations within this period due to its censorship and dogmatic manner (Klaic 2007).

During the Socialist regime, international cooperation in culture, economics, and

politics was rare in the Hungarian state, and if there were some, it was a government-funded
program to boost the reputation and prestige of the regime. Along with this, the role of state-
owned companies was still prevalent in the 1980s as their cultural activities shaped the beliefs
of people based on the centralized decision-making norms of the state: these companies were
also responsible for cultural support and welfare.

In the shift of the political atmosphere of the 1990s, the cultural policy of Hungary
was also changed in turn. The cultural reform was based on two models, the pre-communist
culture and modern western influences, along with their entry into the European Union; the
cultural policy of the Hungarian state was shifting and benefited from the EU's projects on
the cultural landscape. In 2006 under Andraz Bozoki, the Ministry of Culture was merged
with the Ministry of Education, which gave the entity more balance in power. Also, the
educational system has implemented emphasis on education regarding post-communism and
19th-century Hungarian culture. However, stagnation of the cultural shift policy was
inevitable as none of the successor administrations have exerted any effort to support and
implement the Cultural Policy of Bozoki and the Parliamentary laws passed in its honor (Toth
2011).

ECONOMIC GRIEVANCES

Albert Louie Villar Jr.

The Hungarian economy suffered most from the Soviet occupation in World War 2
and the subsequent communist government's Soviet-imposed policies. These policies led to
economic stagnation and poverty for the people of Hungary.
 During the Soviet occupation of Hungary, the USSR imposed a labor system known
as malenki robot or little work, which saw an estimated 600,000 captured Hungarians
deported to labor camps in the Soviet Union, where 200,000 have perished before their return
home. This robbed the Hungarians of able-bodied individuals to support their economic
rehabilitation after the war had devastated their economy and the general structure of
government, culture, and identity.

The Hungarian People's Republic, which was the Communist-led incarnation of

Hungary, was directed by Stalin's imposed directives. Also, the economy followed what most
of the Eastern Bloc adhered to, the Soviet command economy; this system was characterized
by a 5-year plan to meet the needs in the production of goods and services in a collectively
Marxist ideal (Crampton 1997). However, this plan led to a lack in production of goods that
hampered the economy and established a shortage economy; this was followed by
dissatisfaction with the quality of the products produced by the Hungarian economy.

The Soviet driven economy lagged far behind that of the West; problems like food shortages,
housing shortages, poverty, political instability, and health problems led to its gradual demise
and eventual disintegration in 1989 and was followed by a series of economic reforms that
valued privatization, a market economy, and membership in world organizations such as
NATO and the EU (Britannica).

PATTERNS OF RACE AND IMMIGRATION

Cristy Almodia

Ethnic groups and races of people reside in Hungary

Magyar is the Hungarian self-designation. In the 9th century, the first Magyars came
to Hungary from the east. They had already allied with the Khazars. Hungarians are the
country's biggest ethnic group, and to avoid misunderstanding, they refer to themselves as
Magyar, which is likely derived from the name Megyer, a prominent Hungarian tribe. The
majority of Hungarians reside in areas formerly part of the Kingdom of Hungary. Between
the 4th and 6th century AD, Hungarians are claimed to have migrated from the west of the
Ural Mountains to lands surrounding the Don River. The Treaty of Trianon split the Kingdom
of Hungary into numerous regions between 1918 and 1920, leaving only a tiny percentage
and a third of the Hungarians as minorities in surrounding nations. However, the surviving
Hungarians grew in number over the twentieth century. Ethnic Hungarians currently make up
83.7 percent of the population.

Romani

Romani Hungarians are a Romani ethnic minority in Hungary. The Romani people
are thought to have originated in Punjab and Rajasthan. The first Romani people arrived in
Hungary in the 14th and 15th centuries, escaping the Turks. Empress Maria Theresa forbade
Romani from marrying and ordered their children to be taken away. At the same time,
Emperor Joseph II outlawed the use of the Romani language to forcefully assimilate them
into Hungarian culture, resulting in the Romani abandoning their culture and customs and
forgetting their original language. The Romani people make up 3.1 percent of the country's
population.

Germans

Germanic Hungarians, often known as Danube Swabians, are a small population of

ethnic Germans in Hungary. When the German-born queen of King of Hungary Stephen I
and her knights visited Hungary in the year 1000, ethnic Germans began to move into the
country. After that, waves of Germanic-speaking individuals migrated into Hungary due to
purposeful settlement strategies favoring the Germans. The Germans created a robust
industrial community through masonry, glass making, and foundries during the nineteenth
century, prompting the Hungarian authorities to devise strategies to incorporate ethnic
Germans into Hungarian culture while maintaining their economic strength. Following World
War II, 239,000 Germans were deported from Hungary due to their Nazi affiliation, while
those who adopted Hungarian citizenship were exempt from deportation and were integrated
into the Hungarian population. In Hungary, ethnic Germans make up about 1.3 percent of the
population.

Slovaks

After Romas and Germans, Slovaks are the third biggest minority community in
Hungary. Between the 9th and 10th centuries, the Slovaks held lands that encompassed the
Great Moravian regions before being absorbed into the Hungarian Principality. The lands
controlled by the Slovaks primarily became part of Habsburg during the Turkish wars, when
the Hungarian Kingdom was broken into three. Slovak migrants migrated to various nations
that formed present-day northern Hungary in the 18th and 19th centuries, while others settled
in the southern area. Slovaks make up about 0.3 percent of the population at the moment.

Immigration

Hungary is located in a geographical and geopolitical zone that is heavily impacted by

economic, political, social, and religious tensions between East and West, North and South,
and efforts to bridge such gaps. Immigration fostered a sense of pluralism in Hungary; this
was shown in the Habsburg Empire when Hungarians coexisted and mixed for centuries with
Germans, diverse Slavic tribes, Italians, Romanians, and Jews.

Jewish Immigration

During the 19th century, Jews were the largest immigrant population to Hungary.
Some came from the Habsburg Empire's western areas, notably Germany, Bohemia, and
Moravia, and others fled Russian pogroms through Polish borders Galicia, from whence they
went to Hungary. After Tsar Alexander II's assassination in 1881, which began the
persecution of Russian Jews, many Jews sought sanctuary in the United States and the
Austro-Hungarian Monarchy, two of the most forgiving nations.

Refugees in Hungary During Second World War

After Hitler's Germany invaded and defeated Poland, Hungary showed remarkable
sensitivity in dealing with the military and many civilians of the nation. The Polish army's
officer corps, many ranks and file troops, and roughly 40,000 civilians were granted refugee
status by Prime Minister Count Pál Teleki and his cabinet.

A group of French refugees came in late 1940. By 1942, the number of French
refugees in Hungary had risen to 600. They were ostensibly housed at a camp in
Balatonboglár, but they resided in two hotels hired by the French Embassy. The French exiles
agreed to help with the Hungarian government's increasingly nonconformist foreign
propaganda effort, such as translating Domokos Kosáry's history of Hungary and László
Makkai's history of Transylvania into French. These Frenchmen produced a short book in
Paris in 1946 to commemorate their kind reception in Hungary (Refuge en Hongrie 1941–
1945).

Belloianis Refugees

Following World Conflict II, Greece's civil war triggered one of the most significant
waves of Greek emigration in contemporary history, bringing 7,000 Greek refugees to
Hungary. The majority of them settled at Beloiannisz, a community near Ercsi named after
Communist resistance commander Nikos Baloyannis and constructed specifically for this
reason in 1950. Some of the refugees returned to Greece in two periods (1954 and 1982), but
most of those who stayed became Hungarian citizens.

ELECTORAL RULES AND PARTY COMPETITIO

Irish Petipit

The electoral system or voting system is a set of rules that decide an election and
referendum outcome; in the case of Hungary, which has a parliament structure unicameral
with a mode of designation directly elected in 199. Single-member constituents have 106 and
one nationwide constituencies, meaning that the 93 elected are under the proportional
representation system.

System and Requirements

This section will first discuss the voting system and voting requirements in Hungary.
The voting system of Hungary is the MMP (Mixed Member Proportional System). Party
candidates can also win seats in Parliament by using so-called "surplus votes" cast in single-
member constituencies. They include votes cast for party candidates who were defeated and
votes cast for party candidates who were not required to win seats (the difference in the
number of votes between the most successful and second candidates in a given constituency).
Each voter in Hungary casts two ballots, one for a single candidate and the other for a party
list. A party-list may be voted for by voters who do not reside in Hungary. Members of a
national minority who register to vote must vote for the minority's list rather than national
parties.

Armenian, Bulgarian, Croatian, German, Greek, Polish, Roma, Romanian, Ruthenian,

Serbian, Slovakian, Slovenian, and Ukrainian are Hungary's 13 officially recognized national
minorities. Only a quarter (1/4) of the votes are required for a "regular" party mandate for the
minority list to win the first mandate. National minorities that do not gain seats in Parliament
may appoint spokespersons.

Vacancies on national list seats are filled by the party concerned from among the
candidates appearing on its original list, whereas vacancies happening between general
elections are filled through by-elections (in single-member constituencies) It is not necessary
to vote.

Voting

For the citizens to vote, they must be at least 18 years of age. Special rules like that of
citizens married at the age of 16 can legally practice their right to vote by election day.
Citizens of Hungary (regardless of residency), refugees, immigrants, permanent residents,
and European Union citizens having a residence or a domicile in Hungary are all eligible to
vote. The grounds for disqualification are insanity/mental illness, guardianship, holders of
temporary entry permits, undocumented immigrants, persons barred from public affairs by a
court decision, imprisonment, and institutional medical care under criminal procedure.

Candidates

The eligible candidates must be qualified electors or voters and be at least 18 years of
age. He or she must be a Hungarian citizen, including naturalized citizens. Those who are not
eligible are people who suffer from insanity/mental illness, guardianship, holders of
temporary entry permits, undocumented immigrants, persons barred from public affairs by a
court decision, imprisonment, and institutional medical care according to criminal procedure.
Candidates may either be in a party or run independently. Parties competing for seats is at
least 27 constituencies throughout nine counties and Budapest are eligible to run on national
lists.

Elections

Elections must be announced such that voting takes place in Hungary seventy to
ninety days after the election is called. Voting will take place on Sunday and will not take
place on a day that is a holiday under the Labour Code, such as Easter Sunday or Pentecost
Sunday. If the electoral commission or the court directs the vote to be rerun, the election must
be held thirty days after the first vote. If the electoral commission or the court demands a new
election, it must be held within thirty days after the first vote.

Determining the results of the elections

The local election office must forward a copy of the voting district record for a single-
member constituency's election results to the parliamentary single-member constituency
election office, and the local election office must forward a copy of the polling district record
prepared on the result of the national lists vote to the territorial election office. On the sixth
day after voting, at the latest, the parliamentary single-member constituency election
commission shall decide the outcome of the vote in the single-member constituency based on
the polling district record. The parliamentary single-member constituency election office
shall send a copy of the record drawn up on the single-member constituency election result to
the National Election Office immediately after that the resolution determining the result of
the single-member constituency election has become final.

Based on the polling district records prepared on the result of the national lists vote,
the territorial election commission shall determine the partial territorial result of the national
lists votes on the sixth day after the vote at the latest. The territorial election office shall send
a copy of the record drawn up on the partial territorial result of the national lists vote to the
National Election Office immediately after that the resolution determining the partial
territorial result of the national lists vote has become final. The National Election
Commission shall determine the results of the postal voting of voters with no Hungarian
address. After the elections become final, the National Election Commission shall publish a
notice of the election results in the Official Gazette of Hungary. The National Election
Commission will also send the appointment letter to the nationality spokesman.

The election of representatives and mayors of municipalities

The local election commission shall call by-elections of a settlement's municipality

representatives and mayor. By-elections of the county and the Capital city general assemblies
and the Lord Mayor of the Capital city shall be called by the territorial election commission.

Election Bodies

During municipal elections for representatives and mayors, the following election
commissioners will be in charge:
 a) the National Election Commission.

b) territorial election commissions;

c) local election commissions,

d) polling station commissions.

Party Competition

Four involved parties dominate the Political Structure of Hungary. FIDESZ

(conservative), MSZP (Social Democratic), Jobbik (Nationalist), and LMP (Ecologist).

The FIDESZ or Fidesz Hungarian Civic Union (Fidesz – Magyar Polgári Szövetség)

The Federation of Young Democrats was created in 1988 as an anti-communist party

that advocated for market economic growth and European integration. Initially, membership
was limited to 35 and under, but this limitation was lifted in 1993. The name Hungarian Civic
Party was added to the abbreviated version of the party in 1995. (altered to Hungarian Civic
Alliance in 2003). In 1997, a defunct Christian Democratic party member joined Fidesz in the
National Assembly, allowing the coalition to constitute the biggest bloc. The following year
Fidesz became the single largest party in the National Assembly.

Latest Parliamentary election, votes: 52.73%

Seats in Parliament: 262

MSZP - Hungarian Socialist Party - (Magyar Szocialista Párt)

Although the Hungarian Socialist Party (MSzP) was founded in 1989, its origins date
to 1948, when the Hungarian Social Democratic Party merged into what was first called the
Hungarian Workers' Party and then, following the attempted revolution against the
communist government in 1956, the Hungarian Socialist Workers' Party (Magyar Szocialista
Munkáspárt, MSZMP) which ruled Hungary in the period 1956-1989. In 1989 the party
renounced Marxism. The MSzP and its partner, the Alliance of Free Democrats, established a
coalition government in 2002, winning a slender majority in the legislature; the coalition was
reelected in 2006.
 Latest Parliamentary election, votes: 19.30%

Seats in Parliament: 59

Jobbik - Movement for a Better Hungary - (Jobbik Magyarországért Mozgalom)

Founded in 2003. Extreme nationalist far-right party. Won close to 15 % of the votes
in the June 2009 European Parliament elections; accused of campaigning on an anti-Jewish
and anti-Roma platform. In 2007, the Jobbik established the Hungarian Guard (Magyar
Garda), a black-uniformed paramilitary organization. The group was banned in 2009 by a
Budapest court but was later reconstituted under a different name.

Latest Parliamentary election, votes: 16.67%

Seats in Parliament: 47

LMP - Politics Can Be Different - (Lehet Más a Politika!)

Environmentalist/ecologist party was founded in 2009, emerging from a grassroots

social initiative. A collective 13-member board leads the party. Ran a joint list with HP
(Humanist Party) in the 2009 European Parliament elections, winning 2,61 % of the votes,
which was less than the 5% needed to gain a seat for the 2009-2014 cycle.

Latest Parliamentary election, votes: 7.48%

Seats in Parliament: 16

THE IMPACT OF CIVIC CULTURE AND POLICY AGENDA

Churchill II D. Deocampo

Hungarian civic culture

According to Almond-Verba, civic culture is the most evolved political culture that
enhances democracy. It distinguishes between political involvement and political inactivity.
A contemporary "civic culture" supports democracy when the two more or less balance each
other, where public action is specialized, participation reigns supreme, and people actively
affect political life (SIMON, 2014). There is a civic culture that sinewing democracy if
political engagement and political inactivity balance each other; János Simon further explains
that when passivity reigns supreme, a conventional "subjected" civil society collaborates with
a "paternalistic" political culture. As a result, civil society's activity and divides between
active and passive forces and ratios are critical in building popular democracy. When civil
society signals are weak, or voter engagement in elections is low in public life, the political
class becomes more elitist, resulting in castes with no check, doing whatever they want,
whether at the national or local level. (2014). Hence, Simon 2014 stated that the power
balance between the political elite and civil society jointly defines the Hungarian
democratization's character, its "pact-like" nature, and its "silent revolutionism." (SIMON,
2014).

During the communist authoritarian regime

Hungary was under the regime of authoritarian rule for four decades, starting from
1949 to 1989, and this had a debilitating effect on Hungary's civil culture. Due to the
authoritarian system of government that ruled over Hungary, Hungarians developed a so-
called defensive civil society, and two years of reforming democratic development were not
enough for Hungary's reconstruction and activation (SIMON, 2014). Citizens' political
culture may be explained in terms of the civil society's historical developments, and
authoritarianism under the communist government has impacted the political culture of
Hungarians. As a result, it eliminated the sovereignty of the Hungarians, therefore, severely
impacting their civic culture. The Rákosi dictatorship expanded in 1948 by prohibiting non-
governmental groups. From 1949, voting for just the state party's men was obligatory. Due to
fear, 99.9% of voters went to the polls in both the parliamentary and municipal elections on
the same day. Both dictatorships (Rákosi and Kádár) deliberately destroyed civil society,
seeing it as a danger. Dictatorships did all they could to destroy civilian autonomy, resistance,
and activity and vanquish the atomized and subjugated (SIMON, 2014).

Democratic transition

The reprisals following 1956, or the 60 years, were replete with brutality and torture,
and it is no surprise that the four-decade tyranny left vivid memories of retaliation in the
minds of Hungarian families. Hence, Hungarians refrained from participating in political
practices and shunned all aspects of public life. Hence, the democratic transition must
democratize the Hungarians. However, at the beginning of the democratic transitions,
opposition parties gathered with the state parties to discuss the distribution of power.
However, the opposition excluded the Hungarian people. This very action of excluding the
public in such a crucial discussion creates a broken society lacking established civil force. No
one asked the Hungarian people what sort of democracy they wanted, what they thought of
the new democratic system, the privatization of the interim Constitution, and what they
desired, accepted, and voted for throughout the democratic transition. (SIMON, 2014). The
Horn government, through the Bokros package, has weakened the civil culture of Hungary
immensely. Austerity measures undermined civil society, and the development of a civic
culture based on active involvement may be traced back to the short or medium-term
(SIMON, 2014). However, People can still recall the picture dominated by their previous
experience, and they thought that in a democratic system, they had a greater chance than they
had in an authoritarian one (SIMON, 2014). The democratic transition of 1990–1998, in a
nutshell, is a series of events where the political elites, both the old and the new, the state
party, and the opposition excluded the Hungarian people from their agendas and kept
protecting their positions.

Stable elite democracy

At last, the civil society of Hungary stood up and united after the Medgyessy government's
post-Communist comeback and Gyurcsány/Bajnai government's post-communist
nomenclature. Everyone realized in 2009 that it was time for civil society groups to unite and
coordinate. Civil Joining Forums (CJF) were formed in 2009 after a multi-level discussion of
bigger groups led to a broad front against the Gyurcsány-government (SIMON, 2014).

The type of government influenced the civic culture of the Hungarians immensely
from the four decades of the authoritarian rule of the communists, the democratic transition
from 1990 to 1998, and the stable elite democracy from 1998 to 2010. The civic culture of
Hungarians during the four decades of communist authoritarian rule was driven by fear that
made them skeptical about participating in politics. During the democratic transition years,
the Hungarians were left out by the opposition, creating a broken society. Finally, after the
political elites excluded the Hungarian public and the post-communists came back, the people
of Hungary developed a sense of togetherness and formed the Civil Joining Forums (CJF).

Policy agenda of Hungary

The policy agenda of Hungary in the year 2021-2025 is focused on sustainable

development, where it focuses on Hungary's competitiveness and its advancement in smart
growth, human capital, and business environment.

Smart Growth

The first policy agenda of Hungary in the year 2021-2025 is smart growth. The key
goals of this policy agenda are to develop the ecosystem and support mechanisms so that
digital transformation, innovation and R&D (Research and Development), greater
productivity, and a sustainable economy can provide Hungary with the necessary pillars for
future success (American Chamber of Commerce in Hungary, 2021). The smart growth
policy agenda focuses on digitalization, innovation, research and development (R&D),
productivity, and sustainability. Digitalization in Hungary needs to be enhanced even though
the country is said to be one of the most advanced countries in ultrafast broadband in
households. However, when it comes to digital infrastructure and small and medium-sized
enterprises (SME) digital preparedness, Hungary is lagging compared to other European
countries. Hungary received 48 points in the European Commission's 2020 Digital Economy
and Society Index (DESI), compared to a European Union average of 53 points. (American
Chamber of Commerce in Hungary, 2021). Hence, the American Chamber of Commerce in
Hungary has opted to advance digitalization by enabling economic and legislative
environment, enhancement of digital competencies and skills, interconnectivity and adoption
rate of digital public services, the share of e-commerce and adoption of e-business
technologies, open Data policy, enhanced cyber-resilience and data security, and
telemedicine solutions (American Chamber of Commerce in Hungary, 2021).

Under smart growth is innovation and Research and Development (R&D). Hungary is
not doing well enough in its research and development spending and the quality of the
research produced by the country. Compared to the OECD average of 2.37 percent,
Hungary's R&D expenditure was just 1.5 % of GDP in 2019. A poor resource allocation
despite increased R&D spending is shown by the low number of new patents registered every
year. In the 2020 Global Innovation Index, Hungary rated 22nd out of 39 European nations,
with the V4 and Austria. The nation ranks at the bottom in other categories, including
academic and research publishing quality (American Chamber of Commerce in Hungary,
2021). Hence, the state has opted to advance its innovation and Research and Development
(R&D) by transforming the economy into a higher value-added level, more robust local
innovation ecosystem. The academia must define best practices to protect and strengthen the
clarity surrounding its IP management, university spin-offs with inventors and licensing of IP
to the corporate sector, market-oriented and world-class fundamental research, cross-border
R&D grants, high value-added R&D projects in select, strategic industries, and lastly
unlocking the strength of data to fuel innovation (American Chamber of Commerce in
Hungary, 2021).
 Under smart growth is productivity. Hungary is lagging in total factor productivity,
measured by R&D (research and development) spending as a percentage of GDP, levels of
innovation, an increasingly skilled workforce, and the existence of major corporations with a
well-developed SME supplier base. Hungary must concentrate on productivity to avoid
falling into the middle-income trap, which might result in economic stagnation. When
middle- and upper-middle-income levels are achieved, the benefits of low-cost labor and
imitation of foreign technologies may vanish (American Chamber of Commerce in Hungary,
2021). Hence, the American Chamber of Commerce in Hungary has opted to advance its
productivity through raising investments, vital, competitive SMEs, increasing the number of
corporate headquarters, and innovation and education (American Chamber of Commerce in
Hungary, 2021).

Lastly, under smart growth is sustainability. Sustainability must be a cornerstone of

economic policy for Hungary to become a competent, resource-efficient, and competitive
economy since enterprises without defined sustainability policies would face a long-term
competitive disadvantage. Sustainability is a multifaceted subject that encompasses
everything from green energy and infrastructure to the rule of law and education. Although it
is a guiding concept across the Policy Agenda, the American Chamber of Commerce in
Hungary believes it is also a strategic emphasis area that should be recognized separately
(American Chamber of Commerce in Hungary, 2021). Hence, the American Chamber of
Commerce in Hungary has opted to enhance the sustainability of Hungary through a system
of education and healthcare that is future-proof, EU greenhouse gas net zero emissions
strategy, promote and support smart and green investment in a proactive manner, To achieve
a leapfrog in sustainability, innovative technology, and sustainable solutions are needed, The
taxation system must reflect the aims of sustainability, action plan to promote a circular
economy, and lastly, enough support for academic institutions, as well as more cooperation
and a defined plan for citizen health and well-being.

Human Capital

The second policy agenda of Hungary in the year 2021-2025 is human capital. The
main objective of human capital is to achieve a globally competitive national economy.
Hence, there should be a well-educated and capable workforce and effective and supportive
labor market regulations (American Chamber of Commerce in Hungary, 2021). The human
capital policy agenda focuses on labor and employment, lifelong learning, education, and
open corporate culture. The first concern of human capital is labor and employment. The
availability of skilled labor is Hungary's major barrier to investment and corporate growth.
As the number of employments in the private sector increased, the number of jobs in the
public sector decreased. The transition resulted in a more efficient labor market because
salaries and productivity are often greater in the private sector. The COVID-19 epidemic has
momentarily reversed this trend. According to activity rates, Hungary has a labor reserve of
around 200,000 people, which compares the entire workforce to the total population. This
Group requires reskilling and atypical job opportunities, particularly in light of the new
remote work opportunities made possible by COVID-19 (American Chamber of Commerce
in Hungary, 2021). Hence, to enhance its labor and employment, Hungary opted to achieve
the following: Incentives for atypical employment, as well as a more flexible, supportive, and
up-to-date regulatory environment. More highly trained, specialty experts will be produced
via education and training. In order to make Hungary an appealing employer brand, the
government should offer incentives for enterprises to fund healthcare services for their
workers. Lastly, the government should increase employee mobility via rental housing
programs and labor mobility incentives (American Chamber of Commerce in Hungary,
2021).

The second concern of human capital is life-long learning (adult education). The
workforce must be lifelong learners and adaptable in today's ever-changing climate.
Companies recognize the need for life-long learning in today's knowledge-based economy.
Adults in Hungary outperform the OECD average in numeracy but somewhat underperform
in literacy. In both reading and numeracy, "highly educated adults" in Hungary outperform
the OECD average. 6% adult training participation compared to 11 percent EU average,
according to Eurostat statistics (American Chamber of Commerce in Hungary, 2021). Hence,
the American Chamber of Commerce in Hungary opted to further enhance the already
outstanding performance of Hungary in adult education through Campaigns for attitude-
shaping and motivation. Adult training inefficiencies must be addressed, increased attempts
to lengthen working lives, increase employment rates, and boost productivity Stronger
competencies, more flexibility, and agility at all levels of the workforce, particularly in SMEs
and blue-collar sectors, for the present and future labor pool, digital literacy should be a top
priority, and finally foreign language skills (American Chamber of Commerce in Hungary,
2021).
 The fourth concern of the human capital policy agenda is education. Education is vital
for national competitiveness; this is especially true for a country like Hungary, which seeks to
compete on innovative, higher-value-added goods and services rather than low salaries. Most
firms examine the availability of competent human resources when deciding where to locate
their operations. even though predicting the future of any profession is difficult, a few
abilities may help assure a bright future. STEM will be in great demand, particularly in IT,
technology, finance, and soft skills that cannot be automated. Hungary spends less on
education than other EU nations and does poorly in international language, math, scientific
tests, and contemporary skills like coding, digital ability, and problem-solving in elementary
and secondary school. Finally, many children leave school without qualifications (American
Chamber of Commerce in Hungary, 2021). Hence, to improve the educational system of
Hungary and produce competent professionals: Hungary opted to increase the share of GDP
spent on education, develop a clear and transparent education policy, promote foreign
language skills, increase general digital literacy STEM (science, technology, engineering, and
mathematics) should be valued and encouraged from an early age, introduce an innovative,
interdisciplinary teacher training system, Implementation of focused countrywide measures to
reduce school dropout rates, Career guidance in secondary and higher education Lastly,
Vocational education must adapt to the changing economy's demands (American Chamber of
Commerce in Hungary, 2021).

The fifth and final concern of the human capital policy agenda is open corporate
culture. A multi-stakeholder effort is needed to promote and enable social responsibility, a
high level of corporate ethic, fairness, diversity, and inclusion in the workplace and society at
large in order to create a healthy society that gives equitable possibilities. Hence, to further
enhance Hungary's corporate culture, Hungary is opted to accomplish the following:
recognition and exposure of strong company practices in ethics, social responsibility,
community outreach activities, and fair and equitable employment policies will continue.
Build a competitive, value-based, sustainable, and ethical corporate ecosystem by promoting
a positive mentality shift in gender equality and diversity (American Chamber of Commerce
in Hungary, 2021).

Business Environment

Hungary's third and last policy agenda in the year 2021-2025 is the business
environment. The objectives of business environments are predictable and stable regulations,
competitive taxation, efficient administration, and a reinforced local supplier base that may
all help boost Hungary's competitiveness (American Chamber of Commerce in Hungary,
2021). The Business Environment policy agenda focuses on the regulatory environment,
taxation, supply chain & regional development, administrative efficiency, and best practice
governance and compliance. On the World Bank's Doing Business 2020 report, Hungary
ranks 52nd out of 190 nations, scoring poorly in dealing with building permits and receiving
power, areas where increased efficiency might make doing business simpler and move us up
the rankings. Hence, promoting high-value-added activities and technology-intensive
investments should be a top priority for Hungary's investment strategy (American Chamber
of Commerce in Hungary, 2021). Hungary's business environment policy agenda focuses on
the regulatory environment, taxation, supply chain and regional development, administrative
efficiency, and best practice governance and compliance. In order to advance the regulatory
environment, Hungary opts to implement the following: the regulatory environment must be
optimized as a significant component of any development plan, with a stable and predictable
regulatory framework, a robust legislative and judicial system, and a greater focus on
transparency and consultation in policymaking (American Chamber of Commerce in
Hungary, 2021). For taxation, Hungary opts to implement a decrease in taxes to keep the
Hungarian tax system competitive, monitoring, advocating, and commenting on tax changes
and complete digitalization of the tax administration. For supply chain and regional
development, Hungary pots to improve supply security and domestic value chains; SMEs
may increase their performance by being more demand-centric, flexible, and cost-competitive
and improving their operational resilience. SMEs' digitization and focus on "pockets of
excellence" (PoE), particularly in research and technology, where Hungary can compete
worldwide (American Chamber of Commerce in Hungary, 2021). For the improvement of
administrative efficiency, Hungary opts to implement the following: administration
procedures that are more streamlined, transparent, user-friendly, and time-aware, an increase
in the use of e-government, The method, time, and cost of getting building permits and
connecting to the electric grid will be more efficient (American Chamber of Commerce in
Hungary, 2021). Lastly, for the best practice governance and compliance, Hungary opts to
implement the following: compliance with rules, regulations, and due process, as well as
sustainable governance. Enhanced data security and privacy. Finally, explain rules to form,
alter, or change association and foundation court filings (American Chamber of Commerce in
Hungary, 2021).
ALTERNATIVE STRATEGIC POLICY RESPONSES

Churchill II Deocampo

In 2020, the Coronavirus ravaged the entire world, where almost every country
suffered the debilitating blow of the pandemic, both in their health and the economy; all
countries worldwide came up with alternative strategic policy responses to combating the
pandemic. In the context of Hungary, they have come up with sound economic and health
policies responses to support the Hungarians during the unprecedented times.

Macroeconomic context

2020 Convergence Program

Like other countries, the pandemic had ravaged the growth prospect of Hungary. The
tourism industry suffered massive losses, and cultural and recreational services were
suspended due to travel restrictions. As the restrictions were lifted, the economy slowly
progressed. Buying spree increased turnover temporarily, and the GDP increased from 3.0%
to 4.8% due to easing the restrictions. The primary policy response of Hungary in mitigating
the risk of Coronavirus is the 2020 Convergence Program. The 2020 Convergence Program
includes a thorough economic impact evaluation of the government's most critical policies,
the most important of which is the Economy Protection Action Plan, which aims to mitigate
the impacts of the coronavirus epidemic (Government of Hungary, 2020). The objective of
the Economy Protection plan is to mitigate the impact of the COVID-19 pandemic, where it
protects existing jobs, Hungarian businesses, and families. The condition plan is considered
the most extensive economic protection in Hungarian history. Also, the 202 Convergence
Program and the Economy Protection Action Plan supported the economic processes through
sinewing investment activity and increasing employment to boost household consumption.
These policy measures have stimulated GDP growth through additional channels, through
export and labor incomes, and the newly enacted government policies will boost economic
growth by 3.7 percentage points this year and 4.3 percentage points next year.

Medium-term budgetary objective

Another economic response the Hungarian government had implemented is the

Medium-term budgetary objective. The goal value for structural balance, defined as a
structural deficit of 1.0 percent of GDP in the period between 2020 and 2022, is the medium-
term fiscal objective (Government of Hungary, 2021). The convergence program utilizes a
coefficient of 0.45 to compute the cyclically adjusted balance to estimate the structural
balance, which is consistent with the technique used by the EU's Output Gap Working Group.
The production gap may be notably negative due to the coronavirus epidemic. In 2021, it was
expected to be -2.7 percent, according to a baseline projection. (Government of Hungary,
2021).

Three-stage Economic Protection Action Plan

To substantially restructure the economy, the Hungarian government launched a

Three-Stage Economic Protection Plan to respond to the unprecedented circumstances
brought by the COVID-19 pandemic. Prime Minister Viktor Orbán announced the Hungarian
government's news economic protection action plan on March 19, 2020. The first phase of
the plan contains five programs: 1.) Individuals and businesses are subject to a moratorium
on all loan repayments until the end of the year. 2.) The Hungarian government imposed an
extension for short-term business loans. 3.) All-new consumer loan rates will be restricted at
the central bank's base rate, plus 5% with a base rate of 0.9 the highest interest rates are 5.9%,
4.) tourism, entertainment, culture, sports, and transportation industries damaged severely by
the pandemic were given support, 5.) finally, new measures that would loosen
labor/employment laws.

The Prime Minister implemented the second phase of the Economic Protection Action
Plan, including five new measures. The action plan will restructure 18.20% of Hungary's
GDP and boost the government deficit aim from 1% to 2.7% (Embassy of Hungary Brussels,
n.d.). The five new measures of the Economic Protection Action Plan's second phase are 1.)
job protection and 2.) job creation. The Hungarian government invested EUR 1.23 billion for
job creation, 3.) financing enterprises, 4.) protection of families and pensioners, 5.) and
finally, the Family and Pensioner Protection Program. (Embassy of Hungary Brussels, n.d.).

Payment moratorium

For the whole year of 202, the Hungarian government issues a payment moratorium on
capital, interest, and payment obligations, including credit, loan, and lease contracts signed
and disbursed before March 19, 2020, with a prohibition on compounded interest
(Government of Hungary, 2020).

Economic stimulus, liquidity support

 According to the Ministry of Finance's projections, credit institutions will pay HUF 55
billion in special taxes to the Epidemic Containment Fund in 2020, while the retail sector will
pay HUF 36 billion. The government offers extra resources to traditional industries that have
been hit the hardest such as Tourism, construction, transportation, logistics, creative
industries, food companies, and health industries (Government of Hungary, 2020).

April 2020 subsidy

A decree was issued by the government of Hungary stating a HUF 50 billion subsidy
to improve competitiveness during the pandemic. Also, a EUR 150 thousand subsidy will be
given to applicants for medium-sized and large enterprises to prove that the pandemic
severely impacted their business (Government of Hungary, 2020).

Széchenyi Card Program

The Széchenyi Card Programme was Launched in 2002 by the Hungarian Chamber of
Commerce and Industry and the National Association of Entrepreneurs and Employers. This
initiative aims to improve the liquidity of Hungarian small and mid-size enterprise SMEs.
Due to the COVID-19 epidemic, the Hungarian government has suspended all loans, capital,
and fee repayments until December 31, 2020. The business loan or financial lease must be
executed before March 18, 2020, to qualify for the freeze. The loan term will be prolonged by
the freeze period. These steps are meant to keep lending going despite the crisis. The
Széchenyi Card Program is designed to help the liquidation of micro, small, and medium-
sized enterprises. Individual entrepreneurs and small enterprises that generally struggle to
secure loans from banks may use the Széchenyi Card Program to get a loan (European
Monitoring Centre on Change, 2021).

Hungarian healthcare

Like every country in the world, the healthcare system of Hungary was severely
devastated by the pandemic. Hence, the government has implemented six healthcare policy
responses in mitigating the proliferation of the COVID-19 pandemic, and these are the
Operational Group for the Containment of the Coronavirus Epidemic, Health Budapest
program, Hungarian Village program, Three Generations for Health, The National Network
of Health Promotion Offices (EFIs) Healthcare at Your Doorstep program, and mandatory
vaccination policy.

Operational Group responsible for The Containment of the Coronavirus Epidemic

 The purpose of the Operational Group responsible for The Containment of the
Coronavirus Epidemic is to detect and locate the existence of the virus in Hungary, as well as
to organize healthcare and epidemic-prevention measures. The measures implemented by the
Operational Group for the Containment of the Coronavirus Epidemic are Restaurants and
businesses were forced to limit the number of people allowed in, events were forbidden, and
movies and other cultural institutions were shut down. Inbound travel for foreign nationals
has been prohibited by the government (Government of Hungary, 2020).

Healthy Budapest Program

Between 2017 and 2026, HUF 700 billion will be spent on healthcare development in
Budapest. In Budapest, four hospital centers were constructed, with further enhancements
planned in 24 partner hospitals and 32 clinics to form an industrial network capable of
responding to technological, diagnostic, and therapeutic healthcare needs. In 2019 the
government of Hungary set aside HUF 42 billion for this initiative, with HUF 40 billion set
aside in 2020 (Government of Hungary, 2020).

Hungarian Village program

The Hungarian Village program aims to reduce the disadvantage of communities with
populations of fewer than 5,00 people and boost inhabitants' access to public healthcare
(Government of Hungary, 2020).

Three Generations for Health

The Three Generations for Health initiative was started using funds from the
government by developing new general practice partnerships that execute new public health
programs in addition to their usual tasks. This initiative tends to expand the network of
general practitioners and offer appropriate primary healthcare to people (Government of
Hungary, 2020).

The National Network of Health Promotion Offices (EFIs)

Local health offices provide health communication services to local communities,

encourage healthy living, and develop collaboration among local health stakeholders. The
long-term goal is to attain nationwide coverage. In 2019-2020, the government invested HUF
3 billion in existing and new officers. The offices run about 2,500 preventive programs
involving 144,000 individuals (Government of Hungary, 2020).
 Health at Your Doorstep

The Health at Your Doorstep initiative offers medical screening near people's homes.
Ten contemporary health promotion vans and nine screening vans with modern
mammography will be available for medical screening in 2020. In addition to raising
awareness, the initiative provides free screening to all participants (Government of Hungary,
2021).

Mandatory vaccination

Since COVID-19 cases are on the rise as a result., the government of Hungary issued
the Government decree 598/2021, which gives employers the authority to impose mandatory
vaccination on their employees. Since November 15, 2021, companies have forced their
workers to get vaccinated against covid-19 by Government Decree 598/2021 (Schoenherr,
2022). Under the scope of the decree, the employer can impose mandatory vaccination as a
requirement for work in some jobs. Hence, if the employees have no proof that they were
vaccinated, the employers will deem them unfit for work (Schoenherr, 2022). However,
employers can only enforce mandatory vaccination for employees at risk of COVID-19
infection. Employers may only mandate covid-19 immunization for affected or at-risk
workers. Companies must identify the most susceptible workers based on workplace and
employment characteristics (Schoenherr, 2022).

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