European Commission replies to PM Orban’s letter
Joe Hennon said the commission was still assessing Hungary’s response to European concerns over the country’s legislation.
Last week the commission said that concerns raised by Barroso, as well as vice-presidents Olli Rehn and Viviane Reding, concerned matters of such importance that they required a thorough analysis. Brussels sources told MTI that once that analysis is completed the commission will decide on what further steps to take.
On December 22 Orban said he had rejected Barroso’s request to withdraw two bills related to the country’s financial stability and the central bank.
Orban said that he told Barroso in his reply letter that it was not possible to delay the two draft laws because they were “important building blocks of the country’s new constitution which is to come into effect from January”. He added that neither law contained anything which the commission’s president had a right or authority to criticise.
Speaking on Hungarian public radio earlier today, Orban said that “we set our own goals, we meet those targets, and if somebody gives us good advice we will thank them, but if they make an attempt to divert us we will politely refuse.”
Parliament today passed the central-bank law, which gives the prime minister the right to nominate the bank’s third deputy governor. The new law adds two members to the current seven of the bank’s rate-setting Monetary Council.
The law includes stipulations under which the government shall not make any attempt to influence the central bank or its leaders, nor is it intended that the governor’s obligation to report to parliament should violate the independence of the bank’s decision makers.
Several passages of the bill were changed with regard to the position of the European Central Bank. In his closing address to the parliamentary debate, Antal Rogan, head of the economic committee, said that “over 90 percent of the European bank’s proposals have been incorporated”.
Contrary to the original proposal, Monetary Council members will continue to be elected by parliament, rather than appointed by the President.
The rate-setting council will have broader powers, such as the authority to define the scope of authority of the deputy governors.
The new law does not affect the mandates of the two incumbent deputy heads of the central bank.
