EU versus Hungary – the next step

On March 7th, the The European Commission decided to continue with accelerated infringement proceedings against Hungary on three issues found problematic. The three issues are the retirement age of judges, the independence of the data protection authority, and the independence of the Hungarian central bank. The next phase of the infringement proceedings can still hardly be seen radical, as it consists of sending two “reasoned opinions” to Hungary on the first two issues. If Hungary does not convincingly assure the European Commission that the aforementioned laws are either in harmony with EU norms, or a process of changing them had started, the third phase will begin. This third phase, coming after the “reasoned opinions”, is taking the proceedings to the European Court of Justice.

A statement of the Commission argues that “Hungary has failed to provide an objective justification for reducing the mandatory retirement age for judges, prosecutors and public notaries from 70 years to 62 years within a time span of only one year”. Some find it especially strange when the retirement age is steadily increased in other fields, and argue that the reason behind the change of the retirement age is that the 273 judges who are forced into retirement directly because of the new law can be replaced with ones supported by the government.

The second reasoned opinion has to do with the data protection authority, pointing out that Hungary has not provided any valid arguments as to why there are no interim measures allowing the former Data Protection Commissioner to stay in office until the end of his term, which ends in 2014.Another issue that had been addressed are the concerns about the restructuring of the Hungarian court system, that is being accused of undermining the independence of the judiciary. The most important particular concern has to do with the additional powers that were given to the president of the National Judicial Office. According to the new law, the president can designate a court in a given case and the transfer of judges without consent – a power considered to be unreasonable by the European Commission.

The concerns on the central bank had already been addressed, as the cabined approved a set of amendments to the law in order to make it more in line with EU norms. Crucial criticized points had been changed, such as the cancellation of the attempt of merging the financial regulatory body with the National Bank. The issue is far from being resolved, though. Economic and Monetary Affairs Commissioner Olli Rehn, while welcoming the proposed changes, pointed out that further proof, “clear commitment and evidence” is needed.