Hungary backs down in its dispute with Europe over new legislation

HUNGARY blinked first yesterday in a showdown with the European Union over concerns that newly introduced legislation threatens the country’s democratic credentials.

European Commission president José Manuel Barroso said he had received a letter from prime minister Viktor Orban early yesterday, in which the Hungarian leader indicated “his intention to modify the relevant legislation and to work with the commission” on complaints centred on the independence of the central bank, the judiciary and data protection.

The letter was sent hours before Mr Orban – whose grip on power has already earned him the nickname “Viktator” – faced stinging criticism from the European Parliament and a day after the commission, the EU’s executive, threatened to take Budapest to court over some of its new laws.

Beside a new central bank law, which gives the government a much larger role than before in naming top bank officials, the EU objects to the forced early retirement of hundreds of judges and has concerns about the independence of the new data protection authority.

“We are willing to factor in the European Commission position,” Mr Orban said of the criticism of the judiciary in a bold personal visit to the chamber in Strasbourg.

Throughout the afternoon, Mr Orban focused on narrow technical issues and sidestepped sweeping criticism from almost everyone but his EPP party in the EU legislature.

“We have all these problems:the euro crisis, the financial crisis. Is it really the most important issue whether the governor of Hungary’s central bank is sworn in and takes an oath on the Hungarian constitution,” he said on one remaining irritant.

But beyond European legislators, Mr Orban has been under fire from civil rights organisations and the West, who fear he could push the country back into authoritarianism.

Critics accuse the government of ramming through a new constitution aimed at remaking Hungary on conservative Christian values. Mr Orban had invited himself to the European Parliament, even winning plaudits from some of his critics for his effort to take it on the chin.

“We are telling you that you are going in the direction of Mr Chavez, Mr Castro and all of those totalitarian and authoritarian governments,” the Green leader Dany Cohn-Bendit said.

Mr Orban has insisted the new constitution is based on the core EU principles, but acknowledged that questions over the independence of the central bank and the judiciary were understandable.

Mr Barroso did not give specifics on what the changes would be. The Hungarian leader was faced derision as he sought to convince the legislature that the new constitution and laws were necessary to get closer to European democratic principles.

Mr Orban said he expected to find a solution soon to the legal challenges, before they reached the stage of going to court.