One of Mádl’s objections to the modifications is that the motion is contrary to its stated aim, namely to increase the independence and effectiveness of the National Bank of Hungary (MNB).

According to the proposal, not only the president of the MNB, but also the Prime Minister could nominate members to the central bank’s Monetary Council, the chief monetary policy decision making body.

Mádl also found it questionable that the new law would allow for appointing too many new members in one instance, a practice that is against EU principles, which insist that members of independent bodies should be appointed gradually and for periods longer than government terms.

Mádl also objects to the planned new practice that only one vice-president of the MNB will be in charge of monetary policy, while the entire central bank is meant by law to be responsible for just that. He also called the government’s attention to the European Central Bank’s 2004 convergence report, which stated that several paragraphs of the planned amendments are against EU rules.

In his response, Finance Minister Tibor Draskovics said he was happy President Mádl did not question the modifications from a constitutional point of view, which would have required a review by the Constitutional Court, a lengthier process than a review at Parliament.

The MNB, for its part, issued a statement saying that it hopes the government will withdraw the proposal, which “hurts the country’s economic interests and weakens the trust of foreign investors.”