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Fidesz backtracks on proposed central bank changes

Governing Fidesz has backtracked on proposed changes affecting the National Bank of Hungary, a proposal published on the website of Parliament show.

The proposal, submitted by Fidesz parliamentary group leader János Lázár, changes the mandate of the MNB's governor from the originally planned nine years to six years, the same period as at present.

An earlier proposal would have given the MNB governor the power to appoint his own deputies. Under the latest proposal, the power remains with the President of the Republic, however, a clause under which the prime minister would have recommended the deputies was scrapped.

The proposal does not reveal whether the MNB governor may propose candidates for deputy-governor.

The proposal would make changes to the Central Bank Act possible only with a two-thirds majority. The same vote would be necessary the amend legislation on the financial market watchdog.