EC issues deadline for Hungarian policy changes

Irish Sun Wednesday 11th January, 2012

COPENHAGEN - The European Commission Wednesday warned Hungarian government that if it failed to modify policies that undermine the independence of the central bank by Tuesday, it could face formal legal action.

Threat of legal action is the sternest warning so far by the European officials, who had been banking so far on Hungarian government to change course faced with the likelihood of losing sorely needed financial assistance from the European Union and the International Monetary Fund.

"The Commission recalls that a legally stable environment, based on the rule of law, including respect for media freedom, democratic principles and fundamental rights, is also the best guarantee for citizens' trust and confidence of partners and investors," it said.

"This is particularly vital in times of economic crisis. The swiftest way to lay to rest the concerns mentioned would of course be action by the Hungarian authorities themselves," the commission said.

The showdown revolves around adoption of a new constitution and a number of laws at the end of last year that remove checks and balances on Prime Minister Viktor Orban's government, which many fear is in a drift back to the autocracy of the formerly communist regime.

Top among three measures of particular concern to Brussels is the independence of the national central bank.

Besides that EC has sought mandatory retirement of judges and prosecutors at the age of 62 instead of 70.

And thirdly, it has sought independence of the national data protection authority in the central European country.

The commission said it planned to complete a full legal analysis of the Hungarian laws within days and make a decision on whether to start a process that could eventually lead to a lawsuit by Tuesday.

A formal European case could take months.

Viviane Reding, the European Union commissioner for justice who is involved in this case, criticized Orban for abusing his parliamentary majority to reshape the Hungarian constitution for the benefit of his ruling Fidesz party, overlooking the national interest.

The Hungarian government "should make use of its two-thirds majority in a responsible manner, and always fully in line with EU law," Reding told her colleagues.

The Council of Europe, a Strasbourg based body that looks into enforcement of the European Convention on Human Rights, Wednesday sent a letter to Hungarian minister of foreign affairs Janos Martonyi, urging joint study of the most contested laws. These include media freedom and religious expression.

Thorbjorn Jagland, the Council's Secretary-General, said that if Hungary failed to modify its laws in line with its commitments as a member of the Council, aggrieved citizens were entitled to bring a case against Hungary at the European Court of Human Rights.