Hungary faces EU deadline over loan package

HUNGARY IS expected to promise to make changes to controversial new laws ahead of a European Union deadline.

HUNGARY IS expected to promise to make changes to controversial new laws ahead of a European Union deadline.

“We have a chance for good agreements,” the country’s prime minister, Viktor Orban, said yesterday.

“We have to fight, but with a level head and with an aim of reaching an agreement.”

Brussels gave Mr Orban until this Friday to formally respond to its concerns over new laws governing Hungary’s central bank, judiciary and data protection system, or run the risk of facing legal action in the European Court of Justice.

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The EU and International Monetary Fund (IMF) have refused to start talks with Hungary on a requested €15-€20 billion credit line until doubts over the laws were resolved.

Criticism of the legislation is part of wider concern over a new Hungarian constitution which opponents at home and abroad say places an inordinate amount of power in the hands of Mr Orban and his allies – and even threatens the country’s democracy.

“I think an agreement with the EU is possible on all three issues: the central bank, the data protection and also the issue of judges,” said Antal Rogan, a leading deputy in Mr Orban’s Fidesz party.

With a small ally, Fidesz controls two-thirds of Hungary’s parliament, allowing it to make sweeping changes to legislation and ignore opposition criticism if it wishes.

The IMF has demanded “tangible steps” from Hungary before starting talks on a credit agreement, which Hungary needs to reassure skittish financial markets of its solvency.

Mr Orban has slapped heavy windfall taxes on some economic sectors and nationalised private pension funds to improve finances.

The EU’s experts have criticised the measures, however, and he has pledged to remove most of them by next year.

Hungary is also under fire over a new media law that critics say gives government loyalists too much influence over the press and broadcasters, and could inhibit free speech.

“I continue to have grave concerns about the current situation in Hungary,” said Neelie Kroes, vice-president of the European Commission, said:.

“The danger of high fines for breaching unclear rules can result in self-censorship, even if no fines are ever imposed,” she warned.

Members of the parliamentary assembly of the Council of Europe, a human rights watchdog, will visit Hungary this week to investigate the impact of the new laws on civil liberties.