Arab Today, arab today hungary brushes off eu criticism on central bank bill
Last Updated : GMT 21:23:04
Arab Today, arab today
Arab Today, arab today

Hungary brushes off EU criticism on central bank bill

Arab Today, arab today

Arab Today, arab today Hungary brushes off EU criticism on central bank bill

Budapest - AFP

Hungary\'s parliament ignored criticism from the European Union and European Central Bank by making few changes Friday to a disputed central bank law and approving further controversial bills. The parliament, dominated by Prime Minister Viktor Orban\'s centre-right Fidesz party, approved amendments to the central bank bill, which has drawn strong criticism from Brussels, the ECB and the International Monetary Fund. With just minor changes, the government will go ahead with its plan to expand the bank\'s rate-setting monetary council and increase the number of deputy governors, measures criticised by the ECB. Critics say the piece of legislation, which is due to be voted on next week, would increase government influence over monetary policy. It takes away from bank governor Andras Simor the choice of naming his deputies, handing the decision to the Fidesz-dominated parliament, and also injects further parliament nominees into the monetary council. In a potential conciliatory gesture, the bill nevertheless included a declaration that the government would not attempt to influence the central bank or its leaders. Parliament also passed a second central bank reform, in the form of a constitutional amendment that creates a legal option to merge the market regulator and the central bank, while demoting the central bank governor to a deputy position. Simor has described the reforms as a \"total takeover\" by the government, bringing \"the final elimination of the central bank\'s independence dangerously close.\" Earlier this week, European Commission head Jose Manuel Barroso wrote a letter to Orban \"strongly\" advising him to withdraw the central bank bill and a so-called \"Economic Stability Act\" until their compatibility with European law is assured. The second bill, approved by the Hungarian parliament on Friday, cements the 16-percent flat rate personal income tax introduced by the Orban government and which has already contributed to a massive hole in the budget. As any future modification will require a two-thirds majority, this will leave future governments effectively with their hands tied as regards to fiscal policy. The Economic Stability Act also postpones until 2016 compliance with a constitutional rule that requires a cut in the public debt every year until it reaches 50 percent of output -- even though this rule was introduced by the Orban government earlier this year. Hungary\'s debt is just under 80 percent of GDP, while the EU requires a ceiling of 60 percent. On Friday, several dozen opposition lawmakers staged a protest in front of parliament against the policies of the Orban government, while in the evening, about 3,000 demonstrators gathered near the assembly building to voice their anger. Hungary is seeking a credit line of 15-20 billion euros ($19.7-26.2 billion) from the EU and IMF, whose officials quit talks here last week in protest over government changes at the central bank. In reaction to the rift in talks, a second ratings agency -- Standard & Poor\'s -- decided to downgrade Hungary\'s debt to non-investment grade on Wednesday, listing the bank legislation among its reasons for the move. The planned reforms \"raise questions about the independence of oversight institutions and complicate the operating environment for investors,\" S&P said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hungary brushes off eu criticism on central bank bill Arab Today, arab today hungary brushes off eu criticism on central bank bill

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today hungary brushes off eu criticism on central bank bill Arab Today, arab today hungary brushes off eu criticism on central bank bill

 



Arab Today, arab today Designer prepared new set of ornaments

GMT 02:45 2017 Wednesday ,28 June

Designer prepared new set of ornaments
Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Mai Al-Jeddawi presents décor ideas for Ramadan
Arab Today, arab today
Arab Today, arab today

GMT 08:23 2017 Saturday ,24 June

Actress Feryal Yussef received new drama offers

GMT 09:49 2017 Tuesday ,02 May

Girl barred from Malaysia chess competition

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse

GMT 16:25 2017 Sunday ,04 June

“Suhoor” is basic meal for fasting

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 11:09 2017 Sunday ,25 June

HUAWEI P10 the ‘guru’ of portrait shots

GMT 17:59 2017 Monday ,12 June

Designer Rania Adel reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday