Economy
Hungarian President blocks controversial change of c.bank law
The President said “the modifications to the MNB Act are incompatible with the constitutional provisions concerning the administration of public finances and information of public interest. Furthermore the retroactive effect of the change does not comply with the constitutional principal of legal certainty."
National Bank of Hungary (MNB) set up six educational foundations, granting them about HUF 245 billion in 2014. It also partly or wholly owns business units such as the Budapest Stock Exchange (BSE) where it bought a majority stake last November.
An amendment to the Central Bank Act, reportedly initiated at Prime Minister Viktor Orbán by MNB Governor György Matolcsy was described by the PM as his “right hand", stipulated that these foundations were now fully controlled by their curators therefore their assets no longer qualified as public.
The new law allows for the data of the bank’s business units to be classified for up to ten years if releasing it is deemed harmful for the MNB’s monetary or foreign exchange policy interests.
Áder said it is his “constitutional liability" to refer such legislation to the Constitutional Court. “[...] if I receive one hundred good laws from Parliament I sign all one hundred [but] if I receive one hundred bad ones I send them all back."
In a letter sent to Constitutional Court President Barnabás Lenkovics Áder said the businesses and foundations of the MNB do handle public assets therefore public access to these data cannot be denied.
Just a fresh example of how the foundations of the central bank spend their “non-public" funds.According to the announcement, Áder has initiated a preliminary constitutional review of the changes to the law on postal services for a similar reason, because of its retroactive effect.
Áder could have chosen a softer way of rejecting the signature of the law. He could have referred it back to Parliament instead of the Constitutional Court. In the former case, however, he would have had no choice but signing it once MPs approve it again (unless he finds a formal mistake).
The Constitutional Court has 30 days for the review.
National Bank of Hungary (MNB) set up six educational foundations, granting them about HUF 245 billion in 2014. It also partly or wholly owns business units such as the Budapest Stock Exchange (BSE) where it bought a majority stake last November.
An amendment to the Central Bank Act, reportedly initiated at Prime Minister Viktor Orbán by MNB Governor György Matolcsy was described by the PM as his “right hand", stipulated that these foundations were now fully controlled by their curators therefore their assets no longer qualified as public.
The new law allows for the data of the bank’s business units to be classified for up to ten years if releasing it is deemed harmful for the MNB’s monetary or foreign exchange policy interests.
Áder said it is his “constitutional liability" to refer such legislation to the Constitutional Court. “[...] if I receive one hundred good laws from Parliament I sign all one hundred [but] if I receive one hundred bad ones I send them all back."
In a letter sent to Constitutional Court President Barnabás Lenkovics Áder said the businesses and foundations of the MNB do handle public assets therefore public access to these data cannot be denied.
Just a fresh example of how the foundations of the central bank spend their “non-public" funds.According to the announcement, Áder has initiated a preliminary constitutional review of the changes to the law on postal services for a similar reason, because of its retroactive effect.
Áder could have chosen a softer way of rejecting the signature of the law. He could have referred it back to Parliament instead of the Constitutional Court. In the former case, however, he would have had no choice but signing it once MPs approve it again (unless he finds a formal mistake).
The Constitutional Court has 30 days for the review.
