Hungary is willing to change legislation if needed - Foreign Minister

On 6 January, Hungary’s Foreign Minister János Martonyi sent a letter to his peers in 26 EU member states and the European Commission, responding to recent reports in the international media that were “heaping heavy criticism" on the government and its legislative majority.

“Many of these reports and much of the commentary are all to general, based on flimsy evidence or even hearsay and are teeming with factual errors. Therefore I decided to write this letter to explain our position and to reiterate our readiness further to discuss the specific concerns that you may have," the minister wrote.

Regarding criticism on the newly adopted Constitution he said: “Anyone who reads the new Constitution [...] can come to the conclusion that the two-third majority is not abused to cement the power of the governing parties but rather to anchor the legal and economic system to certain values and norms," Martonyi said. He mentioned the “debt break" as one example, saying this “golden rule on responsible fiscal policy" is now likely to become “one of the essentials of an emerging European economic union."

The new constitution and fundamental (or cardinal) laws “give the ruling party sweeping powers over the judiciary, the media, churches and the central bank. With the new charter and laws taking effect Jan. 1, the government of Prime Minister Viktor Orbán now more resembles the autocratic regimes of Russia and Belarus than fellow E.U. democracies," The Washington Post said on Tuesday.

It notes that some 270 judges are being forced to retire, and “sole authority to name their replacements has been given to a close associate of the PM - who also may choose the courts where cases are assigned."

All but 14 religious denominations have been denied official recognition; those losing tax-exempt status and state school payments include the Episcopal and Methodist churches, several Jewish congregations, and all Muslim sects. “Electoral districts have been redrawn in such a way that the ruling Fidesz party — which lost two of the last three elections — would have won all three," the paper added.

About 30,000-50,000 people took to the streets on the eve of a glitzy gala to celebrate the new constitution. And while a select few were enjoying the show inside the Opera House, tens of thousands of protesters jeered Orbán, calling the premier the “Viktator" , accusing the government of exerting control over everything from the media, to the economy and religion.Martonyi mentioned the most controversial new law of all, the Central Bank Act that raised concerns in the EU, the ECB and the IMF that said it can curb the central bank’s (NBH) independence. The minister said the new law provides the possibility of merging the NBH with the financial supervisory authority (PSZÁF), stressing that the government continues consultations with the European Commission and the ECB “so as to reassure everyone that the independence of the Hungarian National Bank will not be compromised."He noted that PM Orbán, after having been in contact with EC President José Manuel Barroso, “has given his personal assurance not to actually implement the changes before the term of current National Bank Governor ends in March, 2013."

“We have provided immediate and detailed answers to the Commission inquiring about the new legislation on the judiciary and on the new Data Protection Authority. We fully respect the prerogatives of the Commission as the guardian of the Treaties," Martonyi said.

“Experience teaches us to trust the Commission to deal with these issues in a fair and balanced fashion. We are ready to reconsider changing legislation, if need be. This has never been and will not be a matter of prestige for my Government," he added.

Martonyi reiterated that the cabinet is “ready to engage in dialogue with anyone on specific concerns, without precondition."

He added, though that they “cannot accept judgements before trial."

"Everything is negotiable," said János Martonyi, the Hungarian foreign minister, in an interview with the Guardian on Monday.

"We want to start negotiating with the IMF and to come to an agreement as soon as possible." There will be a deal, he repeated several times.When asked whether he regretted the strong anti-IMF rhetoric that has come from the Hungarian government - particularly the unconventional economy minister, György Matolcsy - since it sent the IMF away in spring 2010, Martonyi distanced himself from his colleague.

"I have never applied any kind of hostile language or animosity vis-à-vis the IMF," he said.

"I have a very strong point on that, which is I believe that the world definitely needs the IMF."

You can read the full letter here.

The forint has firmed six units versus the euro since opening. The last time the HUF was this strong was at the end of 2011. The release of Martony's letter boosted the forint by about two units.

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