The Prime Minister noted that Hungary had purchased E.ON’s gas business in Hungary for well under the maximum price set previously by the Government. The Hungarian Electricity Works (MVM) reached an agreement with E.ON on Thursday and only technical details remain to be worked out before the contract is signed.

The acquisition includes four gas storage facilities as well as Hungary’s contract for gas deliveries from Russia. Viktor Orbán highlighted that in such a significant issue with regard to the Hungarian economy, a Hungarian stakeholder is necessary. Thanks to the agreement, the Government will have the opportunity to further reduce utility prices; the cabinet is aiming to bring them down to at least the European average.

Commenting on developments in IMF talks, Viktor Orbán said that Hungary had asked for an as yet unapproved flexible credit line, not a loan. He indicated, however, that negotiations are not over yet as Hungary is still awaiting a final decision from the IMF with regard to receiving the safety net. The prospects of Hungary receiving a flexible credit-line are good, as the country’s financial situation has improved significantly over the past year. He mentioned that last year Hungary had been able to pay off its earlier debts without taking on further loans, adding that the quantity of Hungarian government securities held by Hungarians had almost doubled.

In response to questions about the next head of the National Bank, the Prime Minister stressed that in providing public services, certain rules must be complied with, and accordingly, the next Governor shall certainly not be involved in offshore businesses. He added that as he does not want to expose Hungary to speculation, he is planning to nominate the new leader of the Central Bank just one day prior to the deadline.

Asked about the negotiations held with President of the European Commission José Manuel Barroso in Brussels, the Prime Minister said that disputed issues have been reviewed and Hungary’s economic situation, which according to the Prime Minister does not justify the EU maintaining an excessive deficit procedure against the country, was also evaluated.

Speaking about his recent visit to Moscow, Viktor Orbán said that Hungary is part of the Western alliance but also has a vital interest in maintaining the best possible relations with Russia. Regarding energy cooperation, he noted that Hungary would like to achieve energy independence as well as maintain security of supply with the help of Russia.

Source: kormany.hu