Brussels, 06/01/2012 (Agence Europe) - Criticism of Hungarian head of government Viktor Orban by the various European bodies is growing ever more strident, following the passing of controversial new laws on the media and the country's central bank, and the reform of the judicial system. The Hungarian issue will be on the college of European commissioners' agenda for discussion on Wednesday 11 January.
The European People's Party (EPP) has at last broken radio silence, stating on Friday 6 January that it will back the European Commission's recommendations that will ensure Hungary's full compliance with EU law. EPP leader Wilfried Martens and Chairman of the EPP Group in the European Parliament (EP) Joseph Daul say in a press release that the new Hungarian constitution adopted on 18 April 2011 replaced a more Stalinist text dating from 1949. “Hungary was the only country in Central Europe which could not draft a new fundamental law since the fall of communism. The new constitution has incorporated the Charter of Fundamental Rights and also a new, fairer electoral system was established which offers the possibility for minorities to be represented in Parliament”, they argue.
“At the same time”, they say that they are well aware that the European Commission has raised issues on some pieces of legislation and is currently examining the English and French translations “to determine if they comply with EU law”. Under the terms of the European Treaty, “the Commission shall oversee the application of EU law, under the control of the Court of Justice of the European Union”, Daul and Martens state. “Needless to say, the EPP will back the Commission's recommendations that will ensure Hungary's full compliance with EU law”, they stress. They say they are confident that Prime Minister Viktor Orban will “work closely with the leadership of the Commission to ensure that the legislation complies with EU law and, if necessary, to make modifications”.
On Friday 6 January, the ALDE Group in the EP, “concerned at political developments in Hungary”, proposed that, to bring an end to “the prevarication which is seemingly paralysing the other EU institutions”, the EP itself begin the procedure authorising the statement that there exists a definite risk of serious violation of fundamental values by the Orban regime. This is a move that is permitted under Article 7 (paragraph 1) of the Treaty, and it would allow the EP to “assess the reality of the threats to civil liberties resulting from the recent controversial constitutional reform and the application of the law on the media that has been in force since last spring”, ALDE says. This request has been submitted to the EP civil liberties committee, which is the competent committee in this area.
Orban re-stated his refusal, on Friday 6 January, to amend the controversial law reforming the country's central bank. “There is a difference of opinion between Hungary and the European Commission over the central bank, which we will settle according to the procedures in force within the European Union”, he is quoted by the MTI agency as saying at a press conference. This press conference followed a meeting with Economy Minister Gyorgu Matolcsy, Hungarian negotiator with the EU and the IMF Tamas Fellegi and the head of the Central bank Andras Simor, despite this latter's being at daggers drawn with Orban. “The law at issue provides a clear guarantee of the independence of the central bank, which is solely responsible for the management of its foreign reserves”, stated the head of government. Thus Orban was responding indirectly to the rumours abounding in Budapest that the government wanted to use these reserves - worth some €35 billion - if negotiations with the IMF and the EU on a loan of €15-20 billion were to collapse. The EU and the IMF, after suspending informal discussions in mid-December because of the reform of the central bank (MNB), have set as a prerequisite for resumption of negotiations that the government repeal its controversial law on the central bank. Fellegi will hold an informal meeting with the director general of the IMF, Christine Lagarde, in Washington on 11 January.
Hungary has come under increased pressure from the financial markets, too, after the third of the big credit rating agencies, Fitch, downgraded Hungarian sovereign debt to “junk” status. This is despite the fact that the country's currency, the florint, has already been devalued by over 20% against the euro. (LC/transl.rt)