Commission refers Hungary to ECJ

Concern about independence of judicial and data-protection institutions.

The European Commission yesterday (25 April) decided to refer Hungary to the European Court of Justice on two counts, reflecting its concern about limits on the independence of judicial and data-protection institutions. 

However, in a decision with potentially significant implications for Hungary’s rocky public finances, the Commission decided to drop a third infringement proceeding, relating to the central bank, after receiving guarantees that Budapest will amend legislation to ensure independence.

The breakthrough came after a meeting in Brussels on Tuesday (24 April) between the Commission’s president, José Manuel Barroso, and Hungary’s Prime Minister Viktor Orbán. If legislation is duly amended, the Commission will resume negotiations on a stand-by financial facility, suspended since last December over fears of government influence on the central bank. The Commission’s approval is a condition for the International Monetary Fund (IMF) to provide the credit sought – possibly as much as €15bn.

Retirement age for judges

Hungary has, however, failed to allay concerns about the mandatory retirement age for judges and the potential for government influence on the data-protection agency. The ECJ will now rule on both disputes. The Commission has asked the ECJ to accelerate its ruling on the retirement age, as the new legislation would oblige 10% of judges to retire within a year.

In addition, the Commission said that it may refer Hungary to the ECJ on other matters, depending on Budapest’s response to legal changes now being suggested by the Council of Europe.