In an interview with Hungarian Television (MTV) on Sunday evening, János Martonyi said the European Commission will decide on Tuesday which Hungarian laws are against EU rules. There are currently three laws on the EU executive’s table: on the judiciary; on the data protection authority (ombudsman) and on the central bank, he explained.
"On Tuesday, we will know exactly at what points of these the EC sees infringement of EU legislation," he said.
When asked how these cases are related to the financial assistance package Hungary is seeking at the IMF/EU, Martonyi responded that the Central Bank Act is the key.
Brussels and Washington both agree that the new CB Act is harmful for the central bank’s (NBH) independence. The law allows for the appointment of two new Monetary Council members; a new Deputy Governor and creates the possibility to merge the NBH with the financial markets regulator (PSZÁF).
The EU could launch infringement proceedings against Hungary over any of the aforementioned laws.
If no appropriate solution is found for the dispute over the central bank law, it will be very difficult to negotiate a new credit line and an infringement procedure would also be launched against the country, Martonyi said.
It has become clear over the past few days that Brussels insists on changing the controversial CB Act. Tamás Fellegi, Hungary’s chief aid negotiator will meet Olli Rehn, the EU’s Economic and Monetary Affairs Commissioner, on Friday, and from this point of view the outcome of their discussion will be of key importance.
