This is a lecture at Sovereignties in Contention: Nations, Regions and Citizens in Europe 26th International Conference of Europeanists, which takes place between June 20-22, 2019 at Universidad Carlos III de Madrid. It seems to be that Hungary under the Orbán-era has become one of the main fighters for sovereignty in the EU. In this paper I am trying to challenge this over-simplification and show the many faces of the system. According to my hypothesis under the populist-nationalist surface of the Orbán-regime there is disappointing compromise between the government and the globalized capitalism. The most state direct (subsidies, tax benefits) and indirect (labour law against the employees) aids have been given by the “nationalist Orbán’s governments” since the regime change. In this sense I put an emphasize on the investigation this new form of post-modern nationalism, which is based on discursive fight for sovereignty, but at the same time sacrifice it in the context of neoliberal capitalism. In this sense, I will analyse the pact between the Orbán’s governments and neoliberal (especially German) companies. Emphasizing and analysing this embarrassing phenomenon, the abdication of sovereignty and the brutal fight for it, are the main goals of this paper. I am dealing with this paper the discursive and economic nationalism as crucial factors of sovereignty.

1. Sovereignties in Contention: Nations, Regions and Citizens in Europe
26th International Conference of Europeanists | June 20-22, 2019. Universidad Carlos III de Madrid
FIGHTING FOR SOVEREIGNTY?
The Lie Behind the Right-Wing Populist
Nationalism in Hungary
Attila Antal
Eötvös Loránd University Faculty of Law Institute of Political
Science
and
Social Theory Research Group at Institute of Political History
antal.attila@ajk.elte.hu
antalattila.hu
The research is financed by EFOP-3.6.3-VEKOP-16-2017-00007

2. Overview
Introduction
1 The Captured History: Discursive Nationalism
2 The Cooperation of Neoliberalism and Authoritarian
Populism
Conclusion

3. Introduction
Orbán regime: fight for sovereignty?
Challenge this over-simplification
Compromise between the authoritarian
government and the globalized
capitalism
Case studies
Discursive fight for sovereignty (in
hostorical sense)
Pact between the Orbán’s governments
and neoliberal companies

4. 1 The Captured History: Discursive Nationalism
„Populism and nationalism have been closely related” (De Cleen,
2017)
Discursive struggle for hegemony
Imagined concept of nation
Orbán’s historical predecessor: interwar right-wing nationalist
regime
Horthy’s regime: right-wing (and elitist) populism, a highly
conservative ruling elite, anti-communism, clericalism, increasing
authoritarianism

5. 1 The Captured History: Discursive Nationalism
Retelling and manipulation of the past
Seeking historical legitimacy
Tragedy for Trianon
Virtual new nation-building (new
Citizenship Law, National Unity Day)
Hungary lost its self-determination
This nationalism is absolutely self-
serving and embodies mere power
interests
Electoral rewards from these strategies
(Toomey, 2018)

6. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
Cooperation of
authoritarian
neoliberalism and
populism
Pseudo „Freedom
Fight”
How the “German
Empire” Finances the
Orbán’s Regime

7. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.1 Pseudo „Freedom Fight”
Crisis of 2008: Orbán argued that the moral foundations of
western capitalism were shaken and strongly criticized the
hegemony of neoliberal solutions
Speculative capitalism vs productive capitalism
Struggle between the Hungarian government and the
IMF/World Bank/EU
“Economic freedom fight” and “unorthodox economic
policy”
Get back the financial sovereignty to make a pact with the
banks and companies of global capitalism

8. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.1 Pseudo „Freedom Fight”
Special tax
Demonstration of government political power in the
financial (primarily banks, insurers) and corporate sectors
Blocking the negotiations with IMF
New tax pacage: bank tax, flat tax, the new 16 percent
personal income tax and the reduction corporate tax from
19 to 10 % (later 9 %)
Put the (selected) multinationals and the national oligarchs
into position
Orbán as a “a modern Robin Hood”?

9. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.2 How the “German Empire” Finances the Orbán’s
Regime
The regime is financed by EU’s neoliberal framework
especially by the German automotive companies
Market driven political authoritarianism (Bloom, 2016)
EMU as a German economic empire (Streeck, 2016)
Hungary as a “good province” of this neoliberal empire
Deep tensions inside the liberal democracy and neoliberal
capitalism
Autocracy in neoliberal framework

10. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.2 How the “German Empire” Finances the Orbán’s
Regime
Compromise
with
neoliberal
capitalism
Suitable
legal
environment
for
neoliberal
capital
Direct and
indirect state
support to
major
partners
Strategic
partnership
agreements

11. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.2 How the “German Empire” Finances the Orbán’s
Regime
Compromise with neoliberal capitalism: strategic
partnership agreements between the government and the
companies, providing direct and indirect state support to
major partners, creation of a suitable legal environment for
neoliberal capital
Strategic partnership agreements: grey zone between
authoritarian state and globalised capitalism; 81 between
2012 and 2019; 15 were concluded with the German
companies’ Hungarian subsidiaries

12. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.2 How the “German Empire” Finances the Orbán’s
Regime
State aids provided by individual government decisions
Before 2010 the social-liberal governments spent HUF 133
billion on non-refundable state aids (the German
companies got HUF 40 billion)
Between 2010 and 2018 the nationalist Orbán-governments
expended HUF 288 billion for the same purpose (the
German interest is more than HUF 100 billion)

13. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
State subsidies of German-related companies in proportion to the subsidies
of all state-supported companies in Hungary (2004-2018) (thousand HUF)
0
20000000
40000000
60000000
80000000
100000000
120000000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
German Summary
The Hungarian province aided in last 14 years
the more than HUF 140 billion (which is one
third of the whole money) the German
enterprises

14. 2 The Cooperation of Neoliberalism and
Authoritarian Populism
2.2 How the “German Empire” Finances the Orbán’s
Regime
Hungary as a „tax haven”: because of the various tax-
reducing factors and discounts the 9 % corporate tax is
reduced approx. 7,5 % (Effective Tax Rates, ETRs)

15. Conclusions
Nationalism as purpose of the political leader
Fidesz strives to channel extreme political messages
Lie of „economic freedom fight”
Hungarian economy depends heavily on the players of
neoliberal capitalism
Further investigations: energy policy, Orbán-Putin
relationship, geopolitical context
Declining sovereignty

16. References
Bartha, A. (2014): Lifting The Lid On Lobbying – National Report of Hungary.
Transparency International Hungary, Retrieved from https://transparency.hu/wp-
content/uploads/2016/03/Lifting-The-Lid-On-Lobbying-National-Report-of-
Hungary.pdf
Bloom, P. (2016). Authoritarian Capitalism in the Age of Globalization. Cheltenham, UK
and Northampton, MA, USA: Edward Elgar Publishing.
De Cleen, B. (2017): Populism and Nationalism. In: Kaltwasser et al., 2017, 342–362.
Enyedi, Zsolt (2016). Paternalist populism and illiberal elitism in Central Europe.
Journal of Political Ideologies, 21(1), 9–25.
Ministry of Foreign Affairs and Trade: Strategic Partnership Agreements. Retrieved
from http://www.kormany.hu/hu/kulgazdasagi-es-kulugyminiszterium/strategiai-
partnersegi-megallapodasok (the site is Hungarian)
Toomey, M. (2018). History, nationalism and democracy: myth and narrative in Viktor
Orbán’s ‘illiberal Hungary’. New Perspectives: Interdisciplinary Journal of Central &
East European Politics and International Relations, 2018(26)1, 87–108.

17. THANK YOU FOR YOUR ATTENTION!