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ECB says gov't must consult with National Bank of Hungary on salary cap

The European Central Bank (ECB) said on Monday that the government must consult with the National Bank of Hungary (MNB) on an amendment that caps public sector salaries in order to protect the bank's autonomy.

The amendment, which caps public sector salaries at HUF 2 million a month, or ten times the average gross monthly salary for the national economy, would reduce MNB governor András Simor's current salary by about 75%.

“To protect the MNB's autonomy in staff matters, part of the principle of central bank independence under Article 130 of the Treaty, the Hungarian authorities have an obligation to ensure that any amendment to the legislative provisions on the remuneration of the MNB's staff is decided in cooperation with the MNB, taking due account of the MNB's views,” the ECB said. (MTI-Econews)