Economy
Brussels sends tough message to Hungary: there are preconditions to aid talks
Hungary's recently adopted new law was in breach of EU laws and compromised the independence of the central bank, Reuters cited Rehn as telling reporters after a meeting of liberal policymakers, hosted by British Deputy Prime Minister Nick Clegg in London on Monday.
"Therefore this will be one of the issues which will be a precondition," Rehn said.
Without preconditions?
Rehn’s above remark shows rather clearly the viewpoint of the European Commission, while Tamás Fellegi, Hungary’s chief aid negotiator is about to pay him a visit next week and said the cabinet trusted there would be no pre-conditions to starting formal talks with the IMF/EU.The IMF intends to continue to entertain its long relationship with Hungary, but it will not compromise in the negotiations while Budapest is seeking an IMF credit line, said Christine Lagarde, managing director of the International Monetary Fund, in a recent interview with CNN.
She noted that both the IMF and the European Commission are looking into Hungarian legislation. "[...] and I certainly hope that the Hungarian authorities will be very keen to have their legislation in compliance with European regulation as well, particularly when it concerns the independence of their central bank," she added.Last December it was reportedly Rehn himself who called off the preparatory talks with Hungarian authorities and recalled the EU’s mission from Budapest prematurely, because the government would not give any assurance that the new central bank law that was in the making then would respect the independence of the NBH.
Since then, the government claims, the main reservations of the EU about the law were considered and implemented, but Brussels is apparently not entirely satisfied with the results.
Rehn’s spokesman, Amadeu Altafaj-Tardio, told a press conference today that the EU executive is close to concluding the analysis of the law.One thing is certain though: the events will speed up this week, so investors should really keep their ears and eyes open if they want to keep track of what’s happening in/with Hungary.
"Therefore this will be one of the issues which will be a precondition," Rehn said.
Without preconditions?
Rehn’s above remark shows rather clearly the viewpoint of the European Commission, while Tamás Fellegi, Hungary’s chief aid negotiator is about to pay him a visit next week and said the cabinet trusted there would be no pre-conditions to starting formal talks with the IMF/EU.The IMF intends to continue to entertain its long relationship with Hungary, but it will not compromise in the negotiations while Budapest is seeking an IMF credit line, said Christine Lagarde, managing director of the International Monetary Fund, in a recent interview with CNN.
She noted that both the IMF and the European Commission are looking into Hungarian legislation. "[...] and I certainly hope that the Hungarian authorities will be very keen to have their legislation in compliance with European regulation as well, particularly when it concerns the independence of their central bank," she added.Last December it was reportedly Rehn himself who called off the preparatory talks with Hungarian authorities and recalled the EU’s mission from Budapest prematurely, because the government would not give any assurance that the new central bank law that was in the making then would respect the independence of the NBH.
Since then, the government claims, the main reservations of the EU about the law were considered and implemented, but Brussels is apparently not entirely satisfied with the results.
Rehn’s spokesman, Amadeu Altafaj-Tardio, told a press conference today that the EU executive is close to concluding the analysis of the law.One thing is certain though: the events will speed up this week, so investors should really keep their ears and eyes open if they want to keep track of what’s happening in/with Hungary.
