Csaba Hende, deputy speaker of the Hungarian parliament, speaks to reporters in the Swedish capital on Tuesday. Reuters
Csaba Hende, deputy speaker of the Hungarian parliament, speaks to reporters in the Swedish capital on Tuesday. Reuters
Csaba Hende, deputy speaker of the Hungarian parliament, speaks to reporters in the Swedish capital on Tuesday. Reuters
Csaba Hende, deputy speaker of the Hungarian parliament, speaks to reporters in the Swedish capital on Tuesday. Reuters

Hungary accuses Nato-applicant Sweden of spreading lies


Simon Rushton
  • English
  • Arabic

Swedish politicians should stop spreading lies about Hungary and the rule of law in the country, a senior politician has said while on a diplomatic mission to Stockholm.

Csaba Hende, head of the Hungarian parliamentary delegation, said Hungary supported Sweden’s Nato application and they expected a vote in favour “in the coming weeks”.

As Sweden, an EU member, applied to join the defence alliance, which needs the unanimous support of its signatories, Nato member Hungary has used that leverage in a dispute with Brussels.

Sweden’s bid, and an application from another EU member Finland, have been ratified by all Nato allies except Hungary and Turkey.

Mr Hende, deputy speaker of the Hungarian parliament, and other Hungarian MPs on Tuesday met the Swedish speaker for a “courtesy visit”.

“It was warm, friendly, forward-looking and carried with it the hope of a new beginning,” he said.

“We made it clear that the Hungarian government, the Hungarian President and the vast majority of MPs unanimously support the Nato membership of Sweden.”

He said it was necessary to improve bilateral relations between Stockholm and Budapest but that Sweden needed to show Hungary “more respect”. Mr Hende accused Sweden of misrepresenting his country.

“It would be good if in the future, Swedish politicians, members of government, MPs and MEPs would avoid portraying Hungary in a false light by eluding to an absence of rule of law that is based on clearly untrue facts,” he said.

Hungary has repeatedly delayed ratifying the Nordic neighbours.

“We started the debate last week and normally when everything goes well, in a couple of weeks’ time such a debate is over,” said Mr Hende, a member of Prime Minister Viktor Orban's Fidesz party.

The vote, initially due to take place between March 6 and 9, has been pushed back to March 20 at the earliest.

Mr Orban had effectively sought to use the Nato expansion as leverage during his own EU stand off over more than $30 billion in blocked funds.

Hungary’s EU funding is currently suspended over concerns of corruption and rule of law.

The Hungarian group will have a similar meeting in Finland on Wednesday.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: March 07, 2023, 5:04 PM