As a result, the EU will take the infringement proceedings to the next phase by sending two “reasoned opinions” to Hungary on the first two issues. This second stage is the last phase before the proceedings are taken to the European Court of Justice.

Hungary has one month in which to satisfy the EC that its laws are or will be in harmony with EU norms.

The EC has requested further information from Hungary on the independence of the central bank and of the judiciary.

A Commission statement said in part: “Hungary has failed to provide an objective justification for reducing the mandatory retirement age for judges, prosecutors and public notaries from 70 years to 62 years within a time span of only one year”.

The second reasoned opinion concerns the data protection authority, as “Hungary has not provided any valid arguments as to why there are no interim measures allowing the former Data Protection Commissioner to stay in office until the end of his term, which ends in 2014,” the EC said.

On a third point, the Commission expressed concerns that the restructuring of the court system has undermined the independence of the judiciary.

The Commission has asked Hungary for explanations relating to the powers given to the president of the National Judicial Office, “particularly the president’s powers to designate a court in a given case and the transfer of judges without consent”.

On the issue of the MNB, the cabinet on Wednesday approved amendments designed to address EU concerns and sent them to the European Central Bank (ECB) for review.

Economy Minister Gyorgy Matolcsy told ECB president Mario Draghi in a letter that the cabinet will rewrite a clause stipulating that a government representative take part in monetary council meetings and another that would order the National Bank to send the agenda of the monetary council meeting.

Provisions related to the composition of the monetary council would also be removed from the act. The cabinet has also desisted from its idea of merging the financial regulatory body Pszaf and the National Bank.

However, the cabinet will not back down on the matter of the MNB governor’s oath of office nor his salary.

Economic and Monetary Affairs Commissioner Olli Rehn welcomed the readiness to correct legislation, but added “nevertheless we need clear commitments and evidence, such as are reflected in a bill, and we shall decide on the basis of the answer as to whether we shall continue the proceedings”.

Fidesz spokeswoman Gabriella Selmeczi said the EC announcement proves that the Hungarian Parliament's decisions are in harmony with European law and values, as “the EC accepted the government's answer in most of the questions raised”.

Prime ministerial spokesman Peter Szijjarto and government spokesman Andras Giro-Szasz said in a joint statement that the cabinet was delighted to hear that the EC accepted 90% of the Hungarian replies.

Fidesz caucus leader Janos Lazar told M1 television Wednesday morning that the Hungarian government has a firm position in the dispute and some of the issues will be transferred to the European Court of Justice.

Regarding the matter of judges, Giro-Szasz told Duna TV Wednesday evening that 174 of the over 230 judges affected have retired of their own volition, not as a result of the disputed legislation. The cabinet is ready for further consultations with the EC on the retirement of judges and the data protection authority, he said."

Source: Hungary Around the Clock

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