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Gov't stands by pay cap for central bank governor in letter to Brussels

National Economy Minister György Matolcsy acknowledged the European Commission's concerns about a public sector salary cap that would also apply to the central bank governor, but reaffirmed the government's intention to enforce the new rule.

"The Government of National Affairs considers it important that the monthly remuneration of leading officials in the public sector, including the governor of the National Bank of Hungary, should not exceed HUF 2 million for reasons of cost-savings and the general government balance, as well as simply because of the principle of human fairness," Matolcsy said in a letter to the Commission's Director-General for Economic and Financial Affairs Marco Buti, the National Economy Ministry said late Thursday.

The ministry said on September 7 that the Commission had requested more information on the pay cap that went into force on September 1.

The National Bank of Hungary has said it is opposed to the pay cap — which reduces governor Andras Simor's salary by about 75% — because it damages its autonomy. (MTI-Econews)