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Saturday, December 4, 2010

The British Conservative-Liberal Democratic coalition government has scrapped plans by the previous government to change the rules on equal pay between men and women.

The previous Labour government included a provision in the Equality Act 2010—Section 78—to allow the government the option to introduce regulations that would require companies to publish details of the difference in pay between male and female employees. If the government had activated such regulations, they would have come into force in 2013. The current government have decided not to activate this requirement and instead will only ask businesses to provide this data voluntarily and will set an “aspiration” to dramatically increase the number of women in senior positions in business.

Lynne Featherstone, the Liberal Democrat MP and coalition Equalities Minister, in announcing the plans stated that the government wishes “to move away from the arrogant notion that government knows best, to one where government empowers individuals, businesses and communities to make change happen.”

Featherstone announced the policy at the School of Management at Cranfield University, who have conducted research finding that only 12.5% of directors of FTSE 100 companies are women, up from 12.2% last year—”glacially slow” progress according to business commentator David Prosser.

Featherstone justified not implementing the pay audits due to the economic costs: “Right at this moment of financial peril to the nation is perhaps not the moment to introduce mandatory pay audits.”

This breaks with a Liberal Democrat manifesto commitment, as well as contradicting Featherstone’s own words two years ago in support of the audit: “A voluntary audit system for private industry is hardly worth the paper it’s printed on. We need to know when the government actually plans to step in if progress isn’t made.”

Women’s groups and trade unions have condemned this move. Dave Prentis, the general secretary of UNISON, Britain’s second largest trade union, said that this is an example of the government “stripping down its commitment to equality”.

Prentis continued: “It is a disgrace that women are still getting paid less than men. This move threatens to turn the clock back on all the progress already made with equal pay.”

Ceri Goddard, the chief executive of the feminist campaigning group the Fawcett Society, condemned the plans: “The persistent gap in pay between men and women is one of the starkest examples of inequality in the UK today. The government’s decision not to bring into force section 78 is a huge disappointment and means this injustice will continue for a long time to come. The government has today consigned another generation of women to lower pay. Their proposal to rely only on voluntary business action on pay isn’t just naive, it sends a dangerous signal that tackling discrimination against women is a choice, not a requirement.”

Yvette Cooper, Featherstone’s shadow minister on the Labour benches, called the news “another broken promise from the government” and said that “scrapping Labour’s plan to increase transparency in pay is a backwards step for women’s equality.”

Sunday, January 3, 2010

Nearly a quarter of Iceland’s voters have signed a petition calling for President Ólafur Ragnar Grímsson to veto the bill passed last week to pay €3.8 billion to the United Kingdom and The Netherlands to compensate depositors impacted when the Icesave online bank collapsed in 2008.

“I consider it to be a reasonable demand that the economic burden placed on the current and future generations of Icelanders, in the form of a state guarantee for Icesave payments to the UK and Dutch governments, be subject to a national referendum,” says the petition.

The petition also demands a referendum be held; any bill not signed by the President must do so under the country’s constitution. This constitutional clause has only once been invoked since the country’s independence from Denmark in 1944. Ólafur challenged a media reform bill in 2004 which the parliament passed by a margin of only two votes. The bill which would have forced the breakup of Baugur Group due to a mix of media and business interests.

The group collecting signatures and who handed over the petition to the President, InDefence, called the bill a “huge risk” for Iceland’s economic future. “All projections based on realistic assumptions […] showed without doubt that Iceland would be unable to meet the payments stipulated by the Icesave loan agreements as set out in the disputed legislation,” it announced in a statement.

Organiser Magnus Arni Skulason made the comparison between repaying the debt and financing Iceland’s health service. “We were able to represent our arguments to the president, and also on the occasion we handed over a petition to ask the president to reject the current Icesave bill,” he said to the BBC. “The interest rate on the Icesave agreement for Iceland is like running the National Health Service of Iceland for six months.”

Magnus expressed preference for the previous legislation from the Icelandic government in August last year. That would have seen the interest paid limited and a time-limit on the period for payment where any outstanding amount would be written off after fifteen years.

Icelandic Prime Minister Jóhanna Sigurðardóttir and her coalition government threatened to resign if the bill was not passed by parliament. It did so by a slim three vote majority: 33 in favour, 30 against. One junior minister has already resigned over the matter.

Icesave was the online service offered by the Landsbanki bank and proposed high interest rates to investors. When it collapsed in October 2008 it had its accounts frozen and had to be rescued, losing 320,000 British and Dutch investors their savings. They were compensated in part by their own governments, which in turn looked to the Icelandic goverment to recompense them. In addition to the Landsbanki, the Glitnir and Kaupthing banks also had to be rescued by the Icelandic government.

The €3.8 billion, to be repaid in installments starting in 2017 over eight years, represents 40% of Iceland’s gross domestic product. Repayment of the debt is an important factor in the country’s application to join the European Union.

Thursday, April 7, 2011

Late last month, the American Civil Liberties Union (ACLU) and Electronic Frontier Foundation (EFF) filed objections to the United States Government’s ‘secret’ attempts to obtain Twitter account information relating to WikiLeaks. The ACLU and EFF cite First and Fourth amendment issues as overriding reasons to overturn government attempts to keep their investigation secret; and, that with Birgitta Jonsdottir being an Icelandic Parliamentarian, the issue has serious international implications.

The case, titled “In the Matter of the 2703(d) Order Relating to Twitter Accounts: Wikileaks, Rop_G, IOERROR; and BirgittaJ“, has been in the EFF’s sights since late last year when they became aware of the US government’s attempts to investigate WikiLeaks-related communications using the popular microblogging service.

The key objective of this US government investigation is to obtain data for the prosecution of Bradley Manning, alleged to have supplied classified data to WikiLeaks. In addition to Manning’s Twitter account, and that of WikiLeaks (@wikileaks), the following three accounts are subject to the order: @ioerror, @birgittaj, and @rop_g. These, respectively, belong to Jacob Apelbaum, Birgitta Jonsdottir, and Rop Gonggrijp.

Birgitta is not the only non-US citizen with their Twitter account targeted by the US Government; Gonggrijp, a Dutch ‘ex-hacker’-turned-security-expert, was one of the founders of XS4ALL – the first Internet Service Provider in the Netherlands available to the public. He has worked on a mobile phone that can encrypt conversations, and proven that electronic voting systems can readily be hacked.

In early March, a Virginia magistrate judge ruled that the government could have the sought records, and neither the targeted users, or the public, could see documents submitted to justify data being passed to the government. The data sought is as follows:

1. Personal contact information, including addresses
2. Financial data, including credit card or bank account numbers
3. Twitter account activity information, including the “date, time, length, and method of connections” plus the “source and destination Internet Protocol address(es)”
4. Direct Message (DM) information, including the email addresses and IP addresses of everyone with whom the Parties have exchanged DMs

The order demands disclosure of absolutely all such data from November 1, 2009 for the targeted accounts.

The ACLU and EFF are not only challenging this, but demanding that all submissions made by the US government to justify the Twitter disclosure are made public, plus details of any other such cases which have been processed in secret.

Bradley Manning, at the time a specialist from Maryland enlisted with the United States Army’s 2nd Brigade, 10th Mountain Division, was arrested in June last year in connection with the leaking of classified combat video to WikiLeaks.

The leaked video footage, taken from a US helicopter gunship, showed the deaths of Reuters staff Saeed Chmagh and Namir Noor-Eldeen during a U.S. assault in Baghdad, Iraq. The wire agency unsuccessfully attempted to get the footage released via a Freedom of Information Act request in 2007.

When WikiLeaks released the video footage it directly contradicted the official line taken by the U.S. Army asserting that the deaths of the two Reuters staff were “collateral damage” in an attack on Iraqi insurgents. The radio chatter associated with the AH-64 Apache video indicated the helicopter crews had mistakenly identified the journalists’ equipment as weaponry.

The US government also claims Manning is linked to CableGate; the passing of around a quarter of a million classified diplomatic cables to WikiLeaks. Manning has been in detention since July last year; in December allegations of torture were made to the United Nations High Commissioner for Human Rights regarding the conditions under which he was and is being detained.

Reports last month that he must now sleep naked and attend role call at the U.S. Marine facility in Quantico in the same state, raised further concern over his detention conditions. Philip J. Crowley, at-the-time a State Department spokesman, remarked on this whilst speaking at Massachusetts Institute of Technology; describing the current treatment of Manning as “ridiculous and counterproductive and stupid”, Crowley was, as a consequence, put in the position of having to tender his resignation to Secretary of State Hillary Clinton.

Despite his native Australia finding, in December last year, that Assange’s WikiLeaks had not committed any criminal offences in their jurisdiction, the U.S. government has continued to make ongoing operations very difficult for the whistleblower website.

The result of the Australian Federal Police investigation left the country’s Prime Minister, Julia Gillard, having to retract a statement that WikiLeaks had acted “illegally”; instead, she characterised the site’s actions as “grossly irresponsible”.

Even with Australia finding no illegal activity on the part of WikiLeaks, and with founder Julian Assange facing extradition to Sweden, U.S. pressure sought to hobble WikiLeaks financially.

Based on a State Department letter, online payments site PayPal suspended WikiLeaks account in December. Their action was swiftly followed by Visa Europe and Mastercard ceasing to handle payments for WikiLeaks.

The online processing company, Datacell, threatened the two credit card giants with legal action over this. However, avenues of funding for the site were further curtailed when both Amazon.com and Swiss bank PostFinance joined the financial boycott of WikiLeaks.

Assange continues, to this day, to argue that his extradition to Sweden for questioning on alleged sexual offences is being orchestrated by the U.S. in an effort to discredit him, and thus WikiLeaks.

Wikinews consulted an IT and cryptography expert from the Belgian university which developed the current Advanced Encryption Standard; explaining modern communications, he stated: “Cryptography has developed to such a level that intercepting communications is no longer cost effective. That is, if any user uses the correct default settings, and makes sure that he/she is really connecting to Twitter it is highly unlikely that even the NSA can break the cryptography for a protocol such as SSL/TLS (used for https).”

Qualifying this, he commented that “the vulnerable parts of the communication are the end points.” To make his point, he cited the following quote from Gene Spafford: “Using encryption on the Internet is the equivalent of arranging an armored car to deliver credit card information from someone living in a cardboard box to someone living on a park bench.“

Continuing, the Katholieke Universiteit Leuven (KUL) expert explained:

“In the first place, the weak point is Twitter itself; the US government can go and ask for the data; companies such as Twitter and Google will typically store quite some information on their users, including IP addresses (it is known that Google deletes the last byte of the IP address after a few weeks, but it is not too hard for a motivated opponent to find out what this byte was).“

“In the second place, this is the computer of the user: by exploiting system weaknesses (with viruses, Trojan horses or backdoors in the operating system) a highly motivated opponent can enter your machine and record your keystrokes plus everything that is happening (e.g. the FBI is known to do this with the so-called Magic Lantern software). Such software is also commercially available, e.g. for a company to monitor its employees.“

“It would also be possible for a higly motivated opponent to play “man-in-the-middle”; that means that instead of having a secure connection to Twitter.com, you have a secure connection to the attacker’s server, who impersonates Twitter’s and then relays your information to Twitter. This requires tricks such as spoofing DNS (this is getting harder with DNSsec), or misleading the user (e.g. the user clicks on a link and connects to tw!tter.com or Twitter.c0m, which look very similar in a URL window as Twitter.com). It is clear that the US government is capable of using these kind of tricks; e.g., a company has been linked to the US government that was recognized as legitimate signer in the major browsers, so it would not be too large for them to sign a legitimate certificate for such a spoofing webserver; this means that the probability that a user would detect a problem would be very low.“

“As for traffic analysis (finding out who you are talking to rather than finding out what you are telling to whom), NSA and GCHQ are known to have access to lots of traffic (part of this is obtained via the UK-USA agreement). Even if one uses strong encryption, it is feasible for them to log the IP addresses and email addresses of all the parties you are connecting to. If necessary, they can even make routers re-route your traffic to their servers. In addition, the European Data Retention directive forces all operators to store such traffic data.“

“Whether other companies would have complied with such requests: this is very hard to tell. I believe however that it is very plausible that companies such as Google, Skype or Facebook would comply with such requests if they came from a government.“

“In summary: unless you go through great lengths to log through to several computers in multiple countries, you work in a clean virtual machine, you use private browser settings (don’t accept cookies, no plugins for Firefox, etc.) and use tools such as Tor, it is rather easy for any service provider to identify you.“

“Finally: I prefer not to be quoted on any sentences in which I make statements on the capabilities or actions of any particular government.“

Wikinews also consulted French IT security researcher Stevens Le Blond on the issues surrounding the case, and the state-of-the-art in monitoring, and analysing, communications online. Le Blond, currently presenting a research paper on attacks on Tor to USENIX audiences in North America, responded via email:

Were the US Government to obtain the sought data, it would seem reasonable the NSA would handle further investigation. How would you expect them to exploit the data and expand on what they receive from Twitter?

• Le Blond: My understanding is that the DOJ is requesting the following information: 1) Connection records and session times 2) IP addresses 3) e-mail addresses 4) banking info

By requesting 1) and 2) for Birgitta and other people involved with WikiLeaks (WL) since 2009, one could derive 2 main [pieces of] information.

First, he could tell the mobility of these people. Recent research in networking shows that you can map an IP address into a geographic location with a median error of 600 meters. So by looking at changes of IP addresses in time for a Twitter user, one could tell (or at least speculate about) where that person has been.

Second, by correlating locations of different people involved with WL in time, one could possibly derive their interactions and maybe even their level of involvement with WL. Whether it is possible to derive this information from 1) and 2) depends on how this people use Twitter. For example, do they log on Twitter often enough, long enough, and from enough places?

My research indicates that this is the case for other Internet services but I cannot tell whether it is the case for Twitter.

Note that even though IP logging, as done by Twitter, is similar to the logging done by GSM [mobile phone] operators, the major difference seems to be that Twitter is subject to US regulation, no matter the citizenship of its users. I find this rather disturbing.

Using 3), one could search for Birgitta on other Internet services, such as social networks, to find more information on her (e.g., hidden accounts). Recent research on privacy shows that people tend to use the same e-mail address to register an account on different social networks (even when they don’t want these accounts to be linked together). Obviously, one could then issue subpoenas for these accounts as well.

I do not have the expertise to comment on what could be done with 4).

((WN)) As I believe Jonsdottir to be involved in the Icelandic Modern Media Initiative (IMMI), what are the wider implications beyond the “WikiLeaks witchhunt”?

• Le Blond: Personal data can be used to discredit, especially if the data is not public.

Having been alerted to the ongoing case through a joint press release by the ACLU and EFF, Wikinews sought clarification on the primary issues which the two non-profits saw as particularly important in challenging the U.S. Government over the ‘secret’ court orders. Rebecca Jeschke, Media Relations Director for the EFF, explained in more detail the points crucial to them, responding to a few questions from Wikinews on the case:

((WN)) As a worse-case, what precedents would be considered if this went to the Supreme Court?

• Rebecca Jeschke: It’s extremely hard to know at this stage if this would go to the Supreme Court, and if it did, what would be at issue. However, some of the interesting questions about this case center on the rights of people around the world when they use US Internet services. This case questions the limits of US law enforcement, which may turn out to be very different from the limits in other countries.

((WN)) Since this is clearly a politicised attack on free speech with most chilling potential repercussions for the press, whistleblowers, and by-and-large anyone the relevant U.S. Government departments objects to the actions of, what action do you believe should be taken to protect free speech rights?

• Jeschke: We believe that, except in very rare circumstances, the government should not be permitted to obtain information about individuals’ private Internet communications in secret. We also believe that Internet companies should, whenever possible, take steps to ensure their customers are notified about requests for information and have the opportunity to respond.

((WN)) Twitter via the web, in my experience, tends to use https:// connections. Are you aware of any possibility of the government cracking such connections? (I’m not up to date on the crypto arms race).

• Jeschke: You don’t need to crack https, per se, to compromise its security. See this piece about fraudulent https certificates:

Iranian hackers obtain fraudulent https — EFF website.

((WN)) And, do you believe that far, far more websites should – by default – employ https:// connections to protect people’s privacy?

• Jeschke: We absolutely think that more websites should employ https! Here is a guide for site operators: (See external links, Ed.)

Finally, Wikinews approached the Icelandic politician, and WikiLeaks supporter, who has made this specific case a landmark in how the U.S. Government handles dealings with – supposedly – friendly governments and their elected representatives. A number of questions were posed, seeking the Icelandic Parliamentarian’s views:

((WN)) How did you feel when you were notified the US Government wanted your Twitter account, and message, details? Were you shocked?

• Birgitta Jonsdottir: I felt angry but not shocked. I was expecting something like this to happen because of my involvement with WikiLeaks. My first reaction was to tweet about it.

((WN)) What do you believe is their reasoning in selecting you as a ‘target’?

• Jonsdottir: It is quite clear to me that USA authorities are after Julian Assange and will use any means possible to get even with him. I think I am simply a pawn in a much larger context. I did of course both act as a spokesperson for WikiLeaks in relation to the Apache video and briefly for WikiLeaks, and I put my name to the video as a co-producer. I have not participated in any illegal activity and thus being a target doesn’t make me lose any sleep.

((WN)) Are you concerned that, as a Member of Parliament involved in the Icelandic Modern Media Initiative (IMMI), the US attempt to obtain your Twitter data is interfering with planned Icelandic government policy?

• Jonsdottir: No

((WN)) In an earlier New York Times (NYT) article, you’re indicating there is nothing they can obtain about you that bothers you; but, how do you react to them wanting to know everyone you talk to?

• Jonsdottir: It bothers me and according to top computer scientists the government should be required to obtain a search warrant to get our IP addresses from Twitter. I am, though, happy I am among the people DOJ is casting their nets around because of my parliamentary immunity; I have a greater protection then many other users and can use that immunity to raise the issue of lack of rights for those that use social media.

((WN)) The same NYT article describes you as a WikiLeaks supporter; is this still the case? What attracts you to their ‘radical transparency’?

• Jonsdottir: I support the concept of WikiLeaks. While we don’t have a culture of protection for sources and whistleblowers we need sites like WikiLeaks. Plus, I think it is important to give WikiLeaks credit for raising awareness about in how bad shape freedom of information and expression is in our world and it is eroding at an alarming rate because of the fact that legal firms for corporations and corrupt politicians have understood the borderless nature of the legalities of the information flow online – we who feel it is important that people have access to information that should remain in the public domain need to step up our fight for those rights. WikiLeaks has played an important role in that context.I don’t support radical transparency – I understand that some things need to remain secret. It is the process of making things secret that needs to be both more transparent and in better consensus with nations.

((WN)) How do you think the Icelandic government would have reacted if it were tens of thousands of their diplomatic communications being leaked?

• Jonsdottir: I am not sure – A lot of our dirty laundry has been aired via the USA cables – our diplomatic communications with USA were leaked in those cables, so far they have not stirred much debate nor shock. It is unlikely for tens of thousands of cables to leak from Iceland since we dont have the same influence or size as the USA, nor do we have a military.

((WN)) Your ambassador in the US has spoken to the Obama administration. Can you discuss any feedback from that? Do you have your party’s, and government’s, backing in challenging the ordered Twitter data release?

• Jonsdottir: I have not had any feedback from that meeting, I did however receive a message from the DOJ via the USA ambassador in Iceland. The message stated three things: 1. I am free to travel to the USA. 2. If I would do so, I would not be a subject of involuntary interrogation. 3. I am not under criminal investigation. If this is indeed the reality I wonder why they are insisting on getting my personal details from Twitter. I want to stress that I understand the reasoning of trying to get to Assange through me, but I find it unacceptable since there is no foundation for criminal investigation against him. If WikiLeaks goes down, all the other media partners should go down at the same time. They all served similar roles. The way I see it is that WikiLeaks acted as the senior editor of material leaked to them. They could not by any means be considered a source. The source is the person that leaks the material to WikiLeaks. I am not sure if the media in our world understands how much is at stake for already shaky industry if WikiLeaks will carry on carrying the brunt of the attacks. I think it would be powerful if all the medias that have had access to WikiLeaks material would band together for their defence.

((WN)) Wikinews consulted a Belgian IT security expert who said it was most likely companies such as Facebook, Microsoft, and Google, would have complied with similar court orders *without advising the ‘targets*’. Does that disturb you?

• Jonsdottir: This does disturb me for various reasons. The most obvious is that my emails are hosted at google/gmail and my search profile. I dont have anything to hide but it is important to note that many of the people that interact with me as a MP via both facebook and my various email accounts don’t always realize that there is no protection for them if they do so via those channels. I often get sensitive personal letters sent to me at facebook and gmail. In general most people are not aware of how little rights they have as users of social media. It is those of uttermost importance that those sites will create the legal disclaimers and agreements that state the most obvious rights we lose when we sign up to their services.

((WN)) Has there been any backlash within Iceland against US-based internet services in light of this? Do you expect such, or any increase in anti-American sentiments?

• Jonsdottir: No, none what so ever. I dont think there is much anti-American sentiments in Iceland and I dont think this case will increase it. However I think it is important for everyone who does not live in the USA and uses social services to note that according to the ruling in my case, they dont have any protection of the 1st and 4th amendment, that only apply to USA citizens. Perhaps the legalities in relation to the borderless reality we live in online need to be upgraded in order for people to feel safe with using social media if it is hosted in the USA. Market tends to bend to simple rules.

((WN)) Does this make you more, or less, determined to see the IMMI succeed?

• Jonsdottir: More. People have to realize that if we dont have freedom of information online we won’t have it offline. We have to wake up to the fact that our rights to access information that should be in the public domain is eroding while at the same time our rights as citizens online have now been undermined and we are only seen as consumers with consumers rights and in some cases our rights are less than of a product. This development needs to change and change fast before it is too late.

The U.S. Government continues to have issues internationally as a result of material passed to WikiLeaks, and subsequently published.

Within the past week, Ecuador has effectively declared the U.S. ambassador Heather Hodges persona-non-grata over corruption allegations brought to light in leaked cables. Asking the veteran diplomat to leave “as soon as possible”, the country may become the third in South America with no ambassadorial presence. Both Venezuela and Bolivia have no resident U.S. ambassador due to the two left-wing administrations believing the ejected diplomats were working with the opposition.

The U.S. State Department has cautioned Ecuador that a failure to speedily normalise diplomatic relations may jeapordise ongoing trade talks.

The United Kingdom is expected to press the Obama administration over the continuing detention of 23-year-old Manning, who also holds UK citizenship. British lawmakers are to discuss his ongoing detention conditions before again approaching the U.S. with their concerns that his solitary confinement, and treatment therein, is not acceptable.

The 22 charges brought against Manning are currently on hold whilst his fitness to stand trial is assessed.

Friday, September 9, 2005

New Orleans, Louisiana —After Category 4 storm Hurricane Katrina slammed into New Orleans, on the night before August 29, 2005, several flood control constructions failed. Much of the city flooded through the openings. One of these was the flood wall forming one side of the 17th Street Canal, near Lake Pontchartrain. The U.S. Army Corps of Engineers (USACE) is the primary agency for engineering support during such emergencies. A USACE team was assessing the situation in New Orleans on the 29th, water flow was stopped September 2nd, and the breach was closed on September 5th.

Monday, November 26, 2007

In the 18 months since Andrea Muizelaar was crowned winner of the reality TV series Canada’s Next Top Model, her life has been a complete whirlwind. From working in a dollar store in her hometown of Whitby, Ontario, to modeling haute couture in Toronto, she had reached her dream of becoming a true Top Model.

But at what cost? Unknown to casual television viewers, Muizelaar had been enveloped in the eating disorder anorexia nervosa, which inevitably became too much for her to bear. She gave up modeling and moved back to Whitby, where she sought treatment for her disorder, re-entered college, and now works at a bank. Where is she now? Happy and healthy, she says.

Recently Andrea Muizelaar sat down with Wikinews reporter Mike Halterman in a candid interview that stretched to nearly two hours, as she told all about her hopes and aspirations, her battle with anorexia, and just what really happened on Canada’s Next Top Model.

Thursday, November 7, 2019

On Monday, Hungarian daily newspaper Magyar Nemzet revealed a deal whereby, on October 29, Hungarian state-owned enterprise HDT Védelmi Ipari Kft. (HDT Limited) acquired Austrian mortar and shell manufacturer Hirtenberger Defence Group. Hirtenberger Defence Group also acknowledged the deal.

In the deal, Austrian, United Kingdom and New Zealand production sites are to be kept, with market sales expected to cover for the price in the long run. A government-guaranteed loan covered the costs, but the exact figure was kept secret.

The November 4 issue of Magyar Nemzet published an interview with Gáspár Maróth, the Hungarian Government commissioner responsible for defence, defence industries and coordinating defence modernization, in which the deal was announced. On the same day, the Hirtenberger Defence Group issued a corresponding press release.

While not naming any other bidders, Maróth said the Hungarian bid won after lengthy negotiations, out of mulitple competing offers. He said he expects no political turmoil between the neighboring Austria and Hungary over the sale. He also noted the acquisition fits into the Hungarian “outward investment” ^{((hu))Hungarian language: ?t?kekihelyezési} strategy of Prime Minister Viktor Orbán.

The Austrian partner asked for the price to be kept secret, but the commissioner stated the purchase was financed by a loan, so it is not a burden on the state budget. With government resolution No. 1430/2019, the state issued an indemnity bond to cover for HDT’s 38.8 million euro loan, and daily Népszava covered the story with a headline pointing out that amount as the presumed price. The creditor Hungarian Development Bank is state-owned as well. Already-queued orders won’t leave idle capacity for some years, Maróth said, and paying back this loan seems realistic; unnamed industry experts called this dubious to Népszava, as the market is saturated and margins are thin, while noting this kind of equipment is needed by the Defence Forces.

The company structure remains unchanged and all sites continue to operate, but Hungarian engineers are to join the research and development team. Maróth pointed out it would have been much more costly and time-consuming to research mortar technology than to acquire it this way. He noted, “the army modernization does not just cover buying ‘hardware’ but technology transfer as well.” ^{((hu))Hungarian language: ?a hader? modernizációja a „vas” megvétele mellett a tudástranszferre is kiterjed.}

Népszava noted the purchase appeared to circumvent the Ministry of Defence. HDT Limited was registered on August 6, 2019 and is under the aegis of Hungarian National Asset Management, Inc.

To modernize its military, in 2018, Hungary licensed Czech firearm technology and started assembling firearms in Kiskunfélegyháza, then agreed with Airbus to open a helicopter parts factory as a joint venture in Gyula.

US President Trump has called for NATO members to increase military spending. According to a March 14, 2019 NATO press release, Hungary spent an estimated 1.15% of its GDP on military expenditures in 2018; NATO guidelines call for 2%. Maróth noted the military had been “effectively disarmed” ^{((hu))Hungarian language: ?gyakorlatilag lefegyverzett} by 2010, when Viktor Orbán regained the prime ministry of Hungary for his second term. Hungary launched a military development program dubbed “Zrínyi 2026” in 2017 to address structural and financial challenges faced by the Defence Force and to renew its equipment.