30 December 2011

The new central bank act, presented by the Government to Parliament and to be passed by the government party majority today, as well as the amendment to the act on the transitional provisions of the new Constitution which would allow the merging of the central bank and the HFSA jeopardise the stability of the Hungarian economy and therefore represent a serious threat to the interests of Hungary.

The new body of laws creates the opportunity to influence central bank decisions by the Government or political interests. As international organisations, including the European Commission, the International Monetary Fund and the European Central Bank have clearly pointed out to legislators on several occasions, such a move would be contrary to the Treaty on European Union, which Hungary also signed and ratified. The international organisations have indefinitely suspended negotiations on a loan to Hungary, due to the laws which are incompatible with European law.

The Magyar Nemzeti Bank has fulfilled its duties independent of political influence and on professional grounds, serving the interests of the country. The laws to be passed by Parliament are incompatible with the principle of legal certainty and create the opportunity for the Government to influence the central bank’s decision-making process in pursuit of its own short-term political objectives. If the governing majority in Parliament passes the law as proposed in the unified bill, it will increase the unpredictability of the economic environment and jeopardise the stability of the Hungarian economy. Therefore, it represents a serious threat to the interests of Hungary.

Magyar Nemzeti Bank