Brussels, 25/04/2012 (Agence Europe) - As expected, the European Commission decided on Wednesday 25 April to end proceedings against Hungary over the independence of the Hungarian central bank and says it is ready to begin discussions on the financial assistance which Budapest has been seeking from the EU and the IMF since November. The college of commissioners, which in the morning discussed the various Hungarian issues, decided, however, to proceed with cases that relate to the Hungarian laws on the retirement ages for judges, prosecutors and notaries and the data protection authority, expressing the view that the assurances offered by Budapest did not go far enough. The Commission will, therefore, refer both these cases to the European Court of Justice.
Central bank. The Commission formed the view that the Hungarian government, the prime minister of which, Viktor Orban, met José Manuel Barroso on 24 April, had complied with all its legal demands, Commission spokesperson Olivier Bailly said at lunchtime on Wednesday. Orban confirmed after his meeting with Barroso that Hungary would “take tangible steps to ensure compliance with EU law on all the issues that are relevant for the stable and independent legal environment that lies at the heart of the investors' confidence and influences macroeconomic stability”, the Commission said in a press release. Last week, the Ministry of the Economy laid a number of amendments before the Hungarian parliament enhancing the independence of the central bank and, provided that these measures are now passed and become law, the Commission, logically, has decided to close the procedure opened against Hungary. Talks on the loan of €15-20 billion that Budapest has been seeking from the EU and the IMF will, then, be able to begin as soon as the three partners have determined negotiating arrangements, Bailly said.
Referral to the Court over judges and data authority. The college of commissioners decided to take further the concerns of Commissioner Viviane Reding on the retirement age of judges and the independence of the data protection authority and decided to refer matters to the Court of Justice, the third stage of the procedure, Bailly went on to say.
The Commission takes the view that the new law lowering the retirement age for judges, prosecutors and notaries from 70 to 62, with effect from the end of this year, still constitutes age-based discrimination at work and that the arguments advanced by Hungary were not sufficient to justify such a move. The measure could lead to 236 judges having to retire this year alone. The Commission also called on Budapest to suspend the law while awaiting the Court's ruling.
The Commission did not receive sufficient assurances on the full independence of the data protection authority and argues that the new Hungarian law continues to contravene Article 8 of the EU Charter of Fundamental Rights and Article 16 of the TFEU. The Hungarian government has not provided an adequate explanation as to why, with the creation of the National Agency for Data Protection, Hungary “ended prematurely the six-year term of the former Hungarian Data Protection Commissioner, who was appointed in September 2008 and whose term of office would have ended in September 2014 only”, the Commission says in its press release.
“The personal independence of a national data protection supervisor, which includes protection against removal from office during the term of office, is a key requirement of EU law. The re-organisation of a national data protection authority is not a reason for departing from this requirement”, the Commission states.
Finally, with regard to the more general issue of the independence of the judiciary, the Commission is, for the moment, willing to await the recommendations of the Council of Europe and its Venice Commission, while still reserving its right to open an infringement procedure at a later date. In its press release, the Commission says it “continues to have concerns about the independence of the judiciary in Hungary more generally and in particular on two essential aspects: the powers attributed to the president of the National Judicial Office to designate a court in a given case, and the possibility of a transfer of judges without their consent”. The Commission fears that “these measures could affect the effective application of Union law in Hungary and the fundamental rights of citizens and businesses to an effective remedy by an independent court in Union law cases”. (SP/transl.rt)