EU: Hungary ensure central bank independence

The EU's top economics official told Hungary on Friday to take concrete steps to ensure central bank independence as a condition for talks to start on precautionary aid for its public finances, a European Commission spokesman said.

EU Economic and Monetary Affairs Commissioner Olli Rehn had a meeting on Friday with Tamas Fellegi, Hungary's minister in charge for aid negotiations with the European Union and International Monetary Fund.

The Commission is stepping up pressure on Budapest over disputed laws passed in January, including one that the Commission says compromises the independence of Hungary's central bank.

“He (Rehn) reiterated that before we can start formal negotiations on this EU-IMF financing programme, certain preconditions must be met,” Rehn's spokesman Amadeu Altafaj told a regular briefing.

“In particular, he stressed that Hungary must take concrete steps to ensure full independence of its central bank.” - Reuters