Hungary is postponing the submission of a law that would amend central bank regulations, a move that comes amidst escalating political tensions within the country.
The proposed changes have raised concerns over the independence of the central bank and the stability of the Hungarian currency, the forint.
The delay reflects the ongoing dispute between Prime Minister Viktor Orban and central bank Governor Gyorgy Matolcsy, who have been at odds over economic policy since the 2022 election.
Economy Minister Marton Nagy announced the postponement, stating that discussions and consultations are ongoing regarding the proposed amendments.
The law aims to expand the supervisory board’s authority over activities beyond the central bank’s core functions, such as monetary policy.
However, concerns have been raised about the potential impact on the central bank’s independence, prompting the need for further scrutiny and dialogue before the law is submitted to parliament.
Hungary’s Regulatory Amendment Postponed
The postponement of the regulatory amendment regarding Hungary’s central bank reflects the growing discord within the country’s political sector.
Prime Minister Viktor Orban’s government and central bank Governor Gyorgy Matolcsy have found themselves embroiled in a bitter dispute, with each side blaming the other for the country’s economic challenges, including inflationary pressures.
The delay in submitting the proposed law highlights the complexity of the situation and the need for careful consideration of its potential implications.
Economy Minister Marton Nagy emphasized that discussions are ongoing to ensure that the proposed amendment upholds the central bank’s independence while addressing the concerns raised by various stakeholders.
The decision to postpone the submission of the law to parliament indicates a recognition of the need for further dialogue and consensus-building before enacting significant changes to the country’s financial regulatory framework.
