Hungarian Prime Minister Offers to Amend Controversial Laws
January 23, 2012
By: Garrett Nada

Following the European Commission’s decision to start legal action against Hungary over some of its new laws that have been deemed undemocratic, Prime Minister Viktor Orban offered to change some of the details of the new laws. On January 18, the New York Times reported that Orban told the European Parliament that the issues raised by the commission “could swiftly be resolved and remedied.”

Over the last few years, the economic crisis has led to some democratic backsliding in European nations, as governments attempt to exert more control over the private sector. The European Union (EU) had not previously considered the possibility of member states adopting policies that undermine the union’s fundamental principles. Few sanctions can be used against states, but the European Court of Justice could fine Hungary. As a last resort, it could also suspend Hungary’s voting rights, as it did with Austria in 2000. The EU froze diplomatic relations with Austria after the far-right Freedom Party entered the ruling coalition. The party’s leader, Joerg Heider, had praised former members of the Wafen SS and aspects of the Nazi regime. An official who preferred to remain anonymous told the New York Times that today that is seen as a “nuclear option.”

The EU is mainly concerned with a new banking law that gives the Hungarian government more control over appointing top bank officials. It also has issues with the creation of a new data-protection authority and the recent forced early retirement of hundreds of judges who were promptly replaced with party loyalists. NPR spoke with a former United States Ambassador to Hungary, CCD Board Member Mark Palmer, who is concerned that the country is headed towards one-party rule and could be kicked out of the EU. Palmer said, “I think eventually the Hungarian people will not tolerate this. And it's not too late; Orban can pull back… But he's not going to do it voluntarily. You have to have pressure to bring about course corrections."

According to NPR, the Hungarian government spokesman, Zoltan Kovacs, stated that Hungary will examine the EU’s concerns and fully cooperate. According to the New York Times, Hungary may minimally edit the laws to satisfy the EU, as it did with its media law last year. Hungary cannot afford to pay fines or face sanctions while it heads into a recession, negotiates defaulting on its debt to the EU and applies for financial aid from the International Monetary Fund (IMF). Economic analysts, Zoltan Arokszallasi, told the New York Times that the government will give into the EU and that, “from a financial point of view there is no alternative.” NPR reported that the EU and the IMF are already withholding a 20 billion euro ($25 billion) loan that Hungary desperately needs.

For previous news on Hungary, please see:
New Hungarian Constitution Limits Democratic Practices, Says Washington Post Editorial Board

Sources:
The New York Times - Pressed by Europe, Hungary Backtracks on New Laws

The New York Times - European Union Gives Hungary an Ultimatum

NPR - Hungary Faces EU Action Over New Constitution

www.ccd21.org