Originally posted by the Voice of America.
Voice of America content is produced by the Voice of America,
a United States federal government-sponsored entity, and is in
the public domain.


    January 20, 2012

Hungary Bows to EU Demands on Disputed Laws

   VOA News
   Hungary's chief negotiator with the IMF and the EU, Tamas Fellegi,
   right, shakes hands with European Commissioner for Economic and
   Monetary Affairs Olli Rehn, left, in Brussels, January 20, 2012.
   Photo: AP
   Hungary's chief negotiator with the IMF and the EU, Tamas Fellegi,
   right, shakes hands with European Commissioner for Economic and
   Monetary Affairs Olli Rehn, left, in Brussels, January 20, 2012.

   Hungary is bowing to European Union demands that it change several of
   its laws that called into question the independence of its central
   bank, the judiciary and media.
   Hungary's dispute with the EU threatened to derail the eastern European
   nation's bid to secure a $25 billion credit line from the EU and the
   International Monetary Fund. But Prime Minister Viktor Orban said
   Friday he expects to reach "a political agreement" with the EU at a
   meeting Tuesday in Brussels with European Commission President Jose
   Manuel Barroso. Orban said he does not see "any particularly difficult
   issues."
   Analyst Peter Kreko of the London-based Political Capital Institute
   said the Budapest government did not have much choice but to accede to
   the EU demands.
   "The government is afraid that if we don't take some measures to reduce
   the public deficit, some of the funds will be frozen by the European
   Union," said Kreko. "And this is what the Hungarian government wants to
   avoid. So I would say that the government has acknowledged that they
   have to make compromises with the European Union, even if they are not
   really happy with that."
   The planned merger of the Hungarian central bank and financial
   regulator has been a key point of contention, along with the retirement
   age of judges and the independence of the data protection authority.
   Elsewhere in Europe, Greek officials were set to resume negotiations
   Friday night with their private creditors in an effort to complete a
   deal to eliminate about $127 billion of the debt the Athens government
   owes them. A deal has proved elusive, but Greek officials say they need
   to reach an agreement in order to secure a new $165 billion
   international bailout and avoid a March default on the country's
   financial obligations.
   Three countries - Greece, Ireland and Portugal - have been forced to
   secure international bailouts in the last two years, and Greece's new
   rescue package would be its second. But European leaders have said they
   will not agree to the new bailout unless the Greek government works out
   the debt relief plan with its private creditors and imposes more
   unpopular austerity measures.