Hungary MPs want rules on central bank in new constitution

BUDAPEST, Oct 20 (BestGrowthStock) – A group of lawmakers working
on Hungary’s new constitution propose that the accountability
of the central bank governor and the head of the state audit
office for errors or breaches of law should be enshrined in
the law.

National news agency MTI reported on Wednesday, citing a
document it obtained that the MPs’ group also proposes to put
in the new draft constitution — the country’s principal law
— that the state debt cannot grow faster than inflation. The
MPs also say that the new legislation should contain that
parliament can only pass state budgets that are sustainable
and in line with European Union rules.

They say that the heads of the central bank and the state
audit office would be responsible for all errors or breaches
of laws, which they themselves committed or which they were
aware of, but failed to inform parliament about it.

Hungary’s new centre-right Fidesz government has said it
would draft a new constitution, which it can easily pass in
parliament now with its more than two-thirds majority.

Various groups of MPs working on concepts for the new
constitution had to submit their proposals by Wednesday and
the parliament committee in charge of preparing the new
constitution will discuss the concepts in November.

The committee will submit the final draft to parliament
after Dec. 15, the MTI said.

Hungary’s new government, which took office in April, has
repeatedly criticised the independent central bank and its
Governor Andras Simor in the past few months for what they
said were policy errors by the bank.

They called on Simor to resign, and also criticised him
for some of his private investments. Simor has said he would
fill his mandate, which expires in 2013.
(Reporting by Krisztina Than; Editing by Jan Paschal)

Hungary MPs want rules on central bank in new constitution