EU prepares legal action against Hungary over reform

THE EUROPEAN Commission is preparing legal action on four fronts against Hungary over sweeping new constitutional measures to…

THE EUROPEAN Commission is preparing legal action on four fronts against Hungary over sweeping new constitutional measures to reform oversight of its central bank, judiciary and data protection office.

The measures have been widely criticised as a power grab by the conservative administration led by prime minister Viktor Orban but he insists that the country’s new constitution, in place for 10 days, is a legitimate means of doing away with the final remnants of Hungary’s communist past.

The authorities in Brussels are unconvinced, however. The latest tensions come one year after Europe forced Mr Orban to water down new laws governing the Hungarian media sector which led to accusations he was trying to muzzle the press.

The EU’s executive branch will today examine a package of legal measures against Hungary but an immediate decision to formally initiate action is unlikely because further information is awaited. The commission’s weekly meeting takes place in Brussels today before travelling to Copenhagen to mark the start of Denmark’s six-month rotating presidency of the EU. Aside from the unresolved sovereign debt crisis, the Hungarian question is seen at present as the biggest political issue facing the EU authorities.

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Assuming no change in Mr Orban’s stance, a decision to go ahead with legal action may be made when the commission meets next week. The commission has the power to pursue member states if they violate European law.

Prime among the issues of concern are new measures which critics claim will blunt the independence of the country’s central bank, something Mr Orban says he does not want to do.

The measures have led the EU and IMF to suspend talks on a new financial aid package for the country although Budapest has signalled a willingness to compromise on this matter. However, senior figures in the commission believe the apparent demarche has not removed the grounds for legal action.

The commission has also questioned new rules which reduce the retirement age of judges to 62 from 70. The new retirement age applies only to the judiciary and EU justice commissioner Viviane Reding believe this measure infringes a directive prohibiting discrimination on age grounds.

She has also found fault with the establishment of a new national judicial office which has the exclusive right to appoint judges. Her complaint here is grounded in concern that much power is vested in the newly-appointed president of the office.

Furthermore, Ms Reding has taken issue with a change in the powers of Hungary’s data protection commissioner. The commissioner is concerned that the new measures will curtail its independence. She has also questioned why the new arrangements led to the departure of the outgoing data protection commissioner, mid-way through a six-year term.

The commission has also urged Hungary to consider issuing more licences to radio broadcasters after its main opposition-minded radio station had its licence revoked.