#POLITICS

Goulash: Orbán’s big day at risk; Patriots for Europe’s first rift

Szabolcs Panyi 2024-08-29
Szabolcs Panyi 2024-08-29

Ahoj, dear readers! Greetings from the heart of Prague, where the aroma of simmering Pilsner goulash is as rich as the stories we’ve prepared for you. After the long summer break, we’re back and ready to serve up a hearty portion of fresh scoops and sizzling tales. This edition is packed with juicy tidbits about the best vacation spots: we’ve got a story on the former Czech PM’s mansion in sunny Southern France, Geert Wilders’ Hungarian holidays, and a scoop on how even the most conservative circles are discovering Albania, much like adventurous backpackers stumbling upon a hidden gem. And in case you missed it, read our impactful summer spy story about GRU agent Pablo González/Pavel Rubtsov. So grab a spoon and dig in!

 Szabolcs Panyi, VSquare’s Central Europe investigative editor

The name VSquare comes from V4, an abbreviation of the Visegrád countries group. Over the years, VSquare has become the leading regional voice of investigative journalism in Central Europe. We are non-profit, independent, and driven by a passion for journalism

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BABIŠ, UNDER INVESTIGATION IN FRANCE, SELLS HIS €22.5 MILLION CHATEAU

Andrej Babiš, the former Czech Prime Minister who’s now in hot water with French investigators, is selling the luxury chateau that he bought using offshore companies – a deal originally exposed in the Pandora Papers investigation. Now, investigace.cz’s Pavla Holcová and I have found that Chateau Bigaud – where Babiš was photographed in a pool on an inflatable boat, and his wife and friends floating on an inflatable pink flamingo – is for sale for €22.5 million. This means that the Babiš co-founded Patriots for Europe political group’s dreams of a pool party retreat on the Côte d’Azur have gone down the drain. For the very first time, we can also check out what the luxury estate looks from the inside, thanks to Sotheby’s real estate agency’s video. Click and read the story here, it’s short.

SLOVAKIA’S BIOFUELS: INDUSTRY PROFITS ECLIPSE CRITICAL DEBATE

Slovakia’s biofuels industry is trying to keep up its green image. Behind the scenes, however, lobbyists are spinning tales about rapeseed production to secure sweet EU subsidies. While they claim to be saving the planet, they’re more likely saving their wallets. And if you’re wondering if those fields of gold are really eco-friendly – well, nothing gold can stay. Read Karin Kőváry Sólymos’s in-depth piece  – originally published by the Investigative Center of Ján Kuciak (ICJK) – here. (Karin wrote this piece as part of her Bertha Challenge fellowship.)

THE PUTIN MAGNET: THE GRU SPY AND THE WOMEN WHO LOVED HIM

A captivating spy thriller brought to life by VSquare/FRONTSTORY.PL’s Anna Gielewska, this article uncovers the mysterious double life of Pablo González, also known as Pavel Rubtsov, a Russian GRU spy who operated under cover as a left-wing Spanish journalist. The story focuses on how González/Rubtsov became embedded in the journalistic community in Warsaw, and also sheds light on the role of his girlfriend, a Polish journalist, revealing that she has been charged with the crime of accessory to espionage. This information caused a huge uproar in Poland while also surprising many in Spain. This was partly because, after González/Rubtsov got arrested for espionage, his Spanish wife appeared on the scene to spearhead the #FreePablo campaign. Again: do read this amazing article here (or the Polish language version here).

FICO’S CRACKDOWN ON RULE OF LAW CONTINUES, CORRUPT PROSECUTOR FREED

In Slovakia, the state of rule of law is quickly shifting from really bad to even worse under the vengeful leadership of Robert Fico. His government has further undermined anti-corruption efforts by releasing a special prosecutor convicted for corruption from prison – while prosecuting those who had put him behind bars. ICJK’s Tomáš Madleňák explains the latest developments here.

It feels a bit inappropriate and like bragging, but since I always share news about VSquare and our partners and colleagues being awarded (or shortlisted for awards), it would be just as odd not to share that I’m one of this year’s Free Media Awards recipients. What makes this bittersweet, if not bizarre, is that this prize – awarded by Norway’s Fritt Ord Foundation and Germany’s Zeit Stiftung Bucerius – was originally meant to honor Eastern European journalists facing pressure and threats. Starting this year, however, journalists from Central Europe are also considered for the prize, which highlights just how badly things are going in this region.

SPICY SCOOPS

There is always a lot of information that we hear and find interesting and newsworthy but don’t publish as part of our investigative reporting — and share instead in this newsletter. 

ORBÁN’S KEY EU PRESIDENCY EVENT FACES UNCERTAINTY

Remember when Hungarian Prime Minister Viktor Orbán kicked off Hungary’s EU presidency with that “peace mission” tour, visiting Putin, Xi Jinping, and Donald Trump? And that he plotted his Kremlin visit behind his allies’ back? Well, Hungary’s EU allies haven’t forgotten, and they’re not exactly thrilled. Many have already responded by boycotting high-level EU meetings hosted by Budapest. Leading the snub squad are the Nordic and Baltic countries, which have recently decided to jointly skip these events on a political level – no ministers or prime ministers allowed. But for Orbán, the only important events in Budapest are the European Political Community (EPC) summit and the informal EU summit focused on the Western Balkans, which will be held on November 7-8. As I previously reported, Orbán originally had high hopes that Donald Trump himself would show up (at least virtually)

However, since early July, not only are Trump’s election chances in jeopardy, but so is the full participation of EU leaders at the Budapest EPC/EU summits. According to multiple diplomats I’ve talked to, EU capitals are watching Orbán’s next move before making a decision about whether they’ll participate. While the coordination between Nordic and Baltic countries suggests that they’re the most likely to pull out, there’s also speculation that Poland and even the Czech Republic may boycott at least the informal EU summit. It will mostly come down to what Orbán does next with his controversial Ukraine-Russia policy, one source said, noting that this is the key issue uniting the aforementioned countries. “But, for example, if Orbán continues his “peace mission” by visiting Israeli Prime Minister Benjamin Netanyahu, it might only anger a few of them,” the source continued, adding that there’s still time for these countries’ leaders to make their decision. 

HUNGARIAN EU PRESIDENCY BUREAUCRATS QUIETLY FRUSTRATED AND WORRIED

In addition to keeping EU countries in the dark about his visit to Putin, it turns out Orbán also left his own EU presidency team in the lurch. Several foreign officials told me that Hungarian bureaucrats were just as blindsided as their EU counterparts were, with many initially assuring these foreign officials that Hungary’s EU presidency would be non-controversial and professional. These Hungarian bureaucrats, who regularly interact with EU officials, are now feeling the brunt of Orbán’s unpredictable diplomacy – and feeling quite embarrassed. A Hungarian government-connected source acknowledged “quiet but real frustration” over how Orbán’s erratic diplomatic moves have undermined the hard work of his own loyal staff tasked with managing the Hungarian EU presidency, adding that “many worry what’s coming next.” However, according to a different source connected to the Hungarian government, while high-level Russian-Hungarian intergovernmental meetings are indeed expected in the coming weeks, these will focus on less explosive – economic and financial – issues unrelated to Ukraine.

PATRIOTS FOR EUROPE’S FIRST RIFT – OVER HUNGARY AND VENEZUELA

Orbán was recently directly warned by his own people about the fallout of his pro-Russian foreign policy, according to a well-connected Hungarian political insider. In late July, Hungary blocked an EU statement condemning Venezuelan President Nicolás Maduro, a Putin ally, for election fraud. This move not only angered EU governments but also shocked Orbán’s closest allies within the far-right Patriots for Europe group. According to the political insider, senior Hungarian MEP Enikő Győri immediately informed Orbán that Hungary’s stance caused a significant rift within the group, potentially risking its unity and future. Sheltering a far-left socialist strongman seemed utterly absurd to the group’s predominantly anti-Communist, right-wing members, such as Spain’s Vox delegation. However, the insider couldn’t confirm if this led to Orbán’s subsequent U-turn, in which Foreign Minister Péter Szijjártó even reached out to Venezuelan opposition leader María Corina Machado to express Hungary’s support. (Orbán’s spokesperson didn’t respond to my request for comment. Enikő Győri directed me to a press officer who didn’t get back to me yet.)

GEERT WILDERS ENJOYING VACATIONS IN HUNGARY – AND FULL SECURITY PROTECTION

There’s one ally from the Patriots for Europe gang who’s extremely unlikely to turn against Orbán: Dutch far-right leader Geert Wilders. Kasper Goethals, a great journalist from the Belgian newspaper De Standaard, helped me out with this scoop by sharing information about Wilders’ frequent trips to Hungary based on a source close to the Dutch Party for Freedom (PVV) leader. Wilders’s fondness for Hungary – his wife’s ancestral home – is well known, but it’s not clear how he manages to travel there so frequently. Wilders requires serious Dutch security protection because of death threats, meaning much about his travel plans is kept under wraps. But according to Kasper’s source, while multiple other countries refuse to provide Wilders with the necessary protection, making it difficult for him to travel as he can’t bring armed or sufficient security to ensure his safety, Hungary always guarantees full security. This means that Wilders not only frequents Hungary because it’s his dream destination, but also because it’s the rare place where he can feel both protected and respected. 

For example, when Wilders visited a rally of Tommy Robinson’s supporters in the UK, his Dutch security detail was not allowed to carry their weapons. Not so in Hungary, and according to Kasper’s source, the red carpet treatment means that Wilders is tied closely to Orbán, and he usually can’t visit Hungary without the Hungarian Prime Minister insisting on a friendly one-on-one meeting. According to a different source – this time an official involved in Dutch-Hungarian relations – the security cooperation between the countries on Wilders’s protection is excellent, a confirmation that Hungarian authorities provide their Dutch colleagues with whatever they need. It is unclear, however, how much Wilders’s trips and vacations cost Hungarian taxpayers. Meanwhile, a former high-ranking Hungarian law enforcement officer told me that such security arrangements are reciprocal, meaning Hungarian dignitaries, including Orbán, also benefit from Dutch security services when visiting the Netherlands. When I asked if Wilders’ security detail in Hungary includes Hungarian officers, the source bluntly stated that “this information is classified”. (Hungary’s government didn’t react to my request for comment.)

CONSERVATIVE INFLUENCE NETWORK CASTS ITS WEB ON ALBANIA

When discussing trendy new holiday spots, Albania is hard to overlook – especially with Trump’s daughter and son-in-law building a luxury resort there. The country isn’t just a hotspot for dubious real estate projects but has also caught the eye of international far-right and conservative influence networks (read our earlier article on Ordo Iuris and their allies). According to a draft agenda I obtained, the right-wing Albanian Policy Center will host a significant international conference in Tirana on September 10 titled “Forum on the Future of Albania – The Conservative Way Forward,” featuring key foreign partners like The Heritage Foundation (US), Nazione Futura (Italy), Center for Fundamental Rights (Hungary) and Ordo Iuris (Poland). “After more than two decades of Soros-dominated US foreign policy on this part of the world, it is time for Conservatives in South-Eastern Europe to move out of their comfort zone and take up the challenge of presenting themselves and their ideas to the world,” the draft agenda reads. Viktor Orbán is expected to send a video greeting, while anti-Muslim and ultra-Catholic figures from Poland’s Ordo Iuris are likely to find an eye-opening networking opportunity with Albania’s local conservatives in the predominantly Muslim country. What’s even more intriguing is that the organizers are also expecting a representative from the Konrad Adenauer Stiftung – the foundation of Germany’s moderate right-wing CDU party – to participate in the George Soros-bashing.

Got a nice scoop to include in our Goulash newsletter? Can’t wait to hear it! Send it to me at [email protected]

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PÉTER SZIJJÁRTÓ WAS AT THE FOREFRONT OF THE CONSTRUCTION OF THE BMW FACTORY IN DEBRECEN. HIS OLD FRIEND’S COMPANY ALSO BENEFITED FROM THE WORK. The German company received tons of state aid in Hungary to build its new plant, and guess what: some of that money went to the foreign minister’s close ally. (Text in Hungarian and English.) 

BYPASSING SANCTIONS AGAINST RUSSIA? SLOVAK EXPORTS TO SEVERAL COUNTRIES HAVE DOUBLED SINCE THE START OF THE WAR. ICJK.sk has uncovered that following Russia’s attack on Ukraine, Slovakia significantly increased its exports to countries neighboring Russia or following pro-Kremlin policies. (Text in Slovak.)

WHAT ARE PEOPLE ILLEGALLY IMPORTING INTO THE CZECH REPUBLIC? Investigace.cz’s series on illegal wildlife trade includes an article with stunning photos of seized goods, a piece on the legal aspects of ivory trade, and an interview with the head of the relevant Czech authority’s department, who says: “Opening customs mail is like Christmas – sometimes you find a bug, a pig embryo, or a chocolate-covered scorpion.” (Texts in Czech.)

This was VSquare’s 25th Goulash newsletter. I hope you gobbled it up. Come back soon for another serving.

Still hungry? Check the previous newsletter issues here! 

SZABOLCS PANYI & THE VSQUARE TEAM

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Szabolcs Panyi

VSquare’s Budapest-based lead investigative editor in charge of Central European investigations, Szabolcs Panyi is also a Hungarian investigative journalist at Direkt36. He covers national security, foreign policy, and Russian and Chinese influence. He was a European Press Prize finalist in 2018 and 2021.