Hungarian government backtracks from collecting fines from opposition parties before election

By bne IntelliNews January 11, 2018

The Economy Ministry on January 10 asked the tax authority to delay collecting fines from opposition parties imposed by the state auditor ASZ to ensure that their pre-election budgets and campaign subsidies are left intact in the run-up to the general election.

“We call on the political parties involved to initiate a consultation with the Hungarian State Treasury and the National Tax and Customs Office on the timetable for payment obligations related to illegal financing," the statement said. 

Political parties fined by the state audit office for allegedly breaking party financing rules may delay penalty payments by six months and can pay in installments. 

The announcement comes just a day after rightwing opposition party Jobbik said it will not pay the HUF331mn (€1.1mn) fine. Party head Gabor Vona did not rule out the possibility that Jobbik’s leaders would end up going to jail for not meeting the 15-day deadline for payments. Authorities would also deduct a further HUF331mn in state subsidies from Jobbik in July.   

Paying the fine would have jeopardised the party's participation in the April general election. The ASZ fined Jobbik for its billboard campaign provided by former Fidesz cashier Lajos Simicska, who is believed to be behind the party's shift to the centre, leaving Fidesz looking more rightwing on many issues.

Jobbik has rejected the latest proposal calling it a trap, a deceit”. There is no guarantee that Fidesz would not collect the fine before the election, Jobbik campaign and caucus leader Janos Volner said, adding that they find the entire procedure by ASZ unlawful. Jobbik would turn to the Constitutional Court and seek legal remedies abroad. 

The ASZ has levied smaller fines three other political parties in the last days of 2016 for breaching party financing rules. Green LMP and DK were fined HUF16mn each, and the Liberals HUF10mn. LMP politicians also ruled out opting for the payment delay. 

Political analysts said Fidesz conceded to public pressure as its closed polls suggested that levying fines on opposition parties before the election was unpopular even amongst its own electorate. 

 

 

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