With regards to further details, he put forward that according to the amended text, the number of external members cannot exceed twice the number of internal ones and the Central Bank shall be entitled to publish or limit access to information concerning the use of reserves. Equally important is that the new law has integrated the provisions of the Labour Code that came into force on January 1.

Mihály Varga underlined that the European Central Bank, the European Commission and the International Monetary Fund have assessed the amendments and all three have also approved them, meaning any obstacles to starting negotiations have been removed. Therefore, this day is a cornerstone in creating stability and renewing Hungarian economic policy, he added.

The European Commission has approved the convergence programme and accepted the deficit of below 3% for the period 2012-13; ECOFIN suspended the freezing of cohesion funds for Hungary on June 22. After passing the amendments to the Central Bank Act, the next step will be voting on next year’s budget. It is therefore apparent that we are moving forward according to a scenario that serves stability and renewal, he said.

When asked about a possible date for the start of negotiations, Mihály Varga replied that the process will be made up of both official and unofficial phases. Either phase is likely to already begin in July.

Spokesperson of the European Commission Olivier Bailly said the European Union welcomed the amendments to the Central Bank Act and announced that both the European Commission and the International Monetary Fund were ready to kick off loan negotiations with Hungary. He also added that the EU-IMF delegation would arrive in Budapest on July 17 and following the entry into force of the newly amended act, "talks may begin soon ".

Source: Prime Minister’s Office - kormany.hu