Economy
If Hungary wants money it will need to change laws - EC spokesman
"Mr. Orban is confident that in the end, we will pay. We think he will have to change the law if he wants his money," said Olivier Bailly, an EU spokesman.
Bailly most likely referred to the criticism EC President José Manuel Barroso informed PM Viktor Orbán in a letter that was leaked to the press. Among others, Barroso urged Orbán to withdraw bills on the central bank and on fiscal stability. Lawmakers passed both laws in late December.Bailly also said, however, that if Hungary falters financially, "It is trouble for all of us. A member state going down would be like another Greece or Ireland."
The EU executive is to hold its first meeting this year on 11 January in Brussels, where it will discuss Hungary too, including the Central Bank Act, the excessive deficit procedure (EDP) and the issue of the pending negotiations with the IMF/EU on financial assistance for the country.
Bailly said yesterday the EC could decide within days or weeks whether or not recently passed Hungarian laws infringe EU regulations.
An EU official warned on Tuesday that talks with Hungary over emergency funding could be frozen and the country faces possible legal action if its controversial new constitution breaches European treaties.
The new constitution entered into force on 1 January, accompanied by legislation which critics say undermine the independence of the central bank, the judiciary and the media - and entrench the position of PM Orbán's ruling Fidesz party which is affiliated with the European People's Party.
“The governor [of the Bank of Hungary] cannot be subservient to a government appointee, that would effectively reduce him to a vice president without independence, with a commissar above him," euractive cited the official as emphasising.
The Commission hopes that the threat to its bail out will be enough to persuade Orbán to satisfy its concerns, but is simultaneously brandishing a threat of infringement proceedings, the site added.
Bailly most likely referred to the criticism EC President José Manuel Barroso informed PM Viktor Orbán in a letter that was leaked to the press. Among others, Barroso urged Orbán to withdraw bills on the central bank and on fiscal stability. Lawmakers passed both laws in late December.Bailly also said, however, that if Hungary falters financially, "It is trouble for all of us. A member state going down would be like another Greece or Ireland."
The EU executive is to hold its first meeting this year on 11 January in Brussels, where it will discuss Hungary too, including the Central Bank Act, the excessive deficit procedure (EDP) and the issue of the pending negotiations with the IMF/EU on financial assistance for the country.
Bailly said yesterday the EC could decide within days or weeks whether or not recently passed Hungarian laws infringe EU regulations.
An EU official warned on Tuesday that talks with Hungary over emergency funding could be frozen and the country faces possible legal action if its controversial new constitution breaches European treaties.
The new constitution entered into force on 1 January, accompanied by legislation which critics say undermine the independence of the central bank, the judiciary and the media - and entrench the position of PM Orbán's ruling Fidesz party which is affiliated with the European People's Party.
“The governor [of the Bank of Hungary] cannot be subservient to a government appointee, that would effectively reduce him to a vice president without independence, with a commissar above him," euractive cited the official as emphasising.
The Commission hopes that the threat to its bail out will be enough to persuade Orbán to satisfy its concerns, but is simultaneously brandishing a threat of infringement proceedings, the site added.
