ECB worried about Hungarys central bank independence.

By bne IntelliNews December 16, 2011
The European Central Bank (ECB) said that the planned changes in the institutional framework of the Hungarian National Bank could affect the independence of the monetary institution, MTI news agency reported. The ECB emphasized the importance of having an independent central bank and pointed out the need to separate monetary policy from the influence of short-term political interests. Any intervention of the government in the decision-making process in the central bank should be avoided, the European monetary authority also noted. The bank said that there were substantial discrepancies between the draft of the central bank act, that was submitted to the ECB, and the measures announced earlier this week and required the up-to-date copy of the new draft as soon as possible. On December14 Hungary's government tabled for discussion in Parliament a new central bank act, which will again restructure the monetary council, increasing its members, but also restricting the rights of the governor to appoint them. Moreover, new lower ceilings for salaries will be introduced. It was namely the restriction of rights to appoint council members that faced strong opposition from the central bank and critique from international institutions like the ECB, when last year the government made the first changes in the structure of the National bank.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Dismiss