Note EU-Digest: "The political situation has become extremely dangerous and critical in the USA, as Trump and his cronies set his illegal planned "coup" in action. The guard rails of US democracy are coming down. US diplomats around the world are in despair not knowing how to respond to local government officials questions as to the present political chaos in America."
Trump’s disinclination — and perhaps inability — to reach beyond his right-wing base, which is insufficient to elect him, also calls into question his political acumen, and is one of many reasons to doubt his basic intelligence (an issue on which he is quite sensitive). But one thing about the president is now clearer than ever: In order to perpetuate his hold on power, Trump is testing the constitution in unprecedented ways.
Read more at
Will Donald Trump cause a civil war? | The Japan Times
Showing posts with label Constitution. Show all posts
Showing posts with label Constitution. Show all posts
7/30/20
USA: Donald Trump suggests delay to 2020 US presidential election
Donald Trump floated the idea of postponing the US Presidential elections.
He floated a delay until people could "properly, securely and safely" vote.
There is little evidence to support Mr Trump's claims but he has long railed against mail-in voting which he has said would be susceptible to fraud.
US states want to make postal voting easier due to public health concerns over the coronavirus pandemic.
Under the US constitution, Mr Trump does not have the authority to postpone the election himself. Any delay would have to be approved by Congress. The president does not have direct power over the two houses of Congress.
Read more at:
Donald Trump suggests delay to 2020 US presidential election - BBC News
He floated a delay until people could "properly, securely and safely" vote.
There is little evidence to support Mr Trump's claims but he has long railed against mail-in voting which he has said would be susceptible to fraud.
US states want to make postal voting easier due to public health concerns over the coronavirus pandemic.
Under the US constitution, Mr Trump does not have the authority to postpone the election himself. Any delay would have to be approved by Congress. The president does not have direct power over the two houses of Congress.
Read more at:
Donald Trump suggests delay to 2020 US presidential election - BBC News
2/20/18
Spain: The Troubling Legal And Political Uncertainty Facing Catalonia- by Javier García Oliva Javier García Oliva
What exactly is happening in Catalonia? The territory is one of the
Comunidades Autónomas, a category of Spanish sub-state entities, and
amongst all of them, Catalonia already enjoys a higher degree of
autonomy and powers than most of its peers. But its political nature and
future are being hotly debated. Anybody could be forgiven for
struggling to disentangle the twisted strands of the current Catalan
saga, which shows no signs of reaching a conclusion any time soon. For
those of us in the UK, the problem is exacerbated by a tendency on the
part of the Anglophone ( British and American) media to grossly over-simplify, and therefore
distort, what is in reality an extremely complicated picture.
There has been a trend towards portraying the political conflict as a David and Goliath struggle between the cultural and linguistic minority who make up the Catalan region, and the mighty central state authorities in Madrid. However, as might be anticipated, this easy narrative is one which will not withstand even the lightest of scrutiny. The real position is indeed far more nuanced, and there are multiple shades of grey. At present, neither the group of pro-independence parties in control of the Catalan Parliament, nor the Government headed by Mariano Rajoy, the President of the Spanish executive in Madrid, are covering themselves with much glory, but the ongoing crisis can still teach the wider world lessons about negotiating constitutional reform, and there are some valuable insights which Britain might gain in contemplating both Brexit and the future of Scotland.
In short, neither the pro-independence nor the pro-Spain parties within the Catalan Parliament emerged with a working majority, and interestingly, support for the pro-independence options has declined, albeit slightly, since the previous election. After some turmoil, the pro-independence faction managed to gain effective control, because the left-wing and anti-austerity party Podemos refused to vote with the pro-Spanish grouping and claimed to be neutral towards both sides. Interestingly, Podemos’ official position is in favour of a unified Spain, although with the proviso that a lawful referendum should be arranged for Catalonia. However, as the pro-unity parties had coalesced around Ines Arrimadas, from the centre right party Ciudadanos, Podemos were unhappy with the possible implications for social and economic policy.
In light of this, the desire of pro-independence politicians in Catalonia to dismantle constitutional protections to further their own political ends cannot be praised, or even justified, and those with political power must defer to the courts and the rule of law if a liberal democracy is to function as such. Equally, it is unquestionable that this can only work if legitimate and functional channels are found to discuss and debate constitutional reform, and where necessary, move it forward.
For the complete report click here: The Troubling Legal And Political Uncertainty Facing Catalonia
There has been a trend towards portraying the political conflict as a David and Goliath struggle between the cultural and linguistic minority who make up the Catalan region, and the mighty central state authorities in Madrid. However, as might be anticipated, this easy narrative is one which will not withstand even the lightest of scrutiny. The real position is indeed far more nuanced, and there are multiple shades of grey. At present, neither the group of pro-independence parties in control of the Catalan Parliament, nor the Government headed by Mariano Rajoy, the President of the Spanish executive in Madrid, are covering themselves with much glory, but the ongoing crisis can still teach the wider world lessons about negotiating constitutional reform, and there are some valuable insights which Britain might gain in contemplating both Brexit and the future of Scotland.
In short, neither the pro-independence nor the pro-Spain parties within the Catalan Parliament emerged with a working majority, and interestingly, support for the pro-independence options has declined, albeit slightly, since the previous election. After some turmoil, the pro-independence faction managed to gain effective control, because the left-wing and anti-austerity party Podemos refused to vote with the pro-Spanish grouping and claimed to be neutral towards both sides. Interestingly, Podemos’ official position is in favour of a unified Spain, although with the proviso that a lawful referendum should be arranged for Catalonia. However, as the pro-unity parties had coalesced around Ines Arrimadas, from the centre right party Ciudadanos, Podemos were unhappy with the possible implications for social and economic policy.
In light of this, the desire of pro-independence politicians in Catalonia to dismantle constitutional protections to further their own political ends cannot be praised, or even justified, and those with political power must defer to the courts and the rule of law if a liberal democracy is to function as such. Equally, it is unquestionable that this can only work if legitimate and functional channels are found to discuss and debate constitutional reform, and where necessary, move it forward.
For the complete report click here: The Troubling Legal And Political Uncertainty Facing Catalonia
8/1/17
Venezuela: EU condemns Venezuela's use of force in election, may not recognize results
The European Union condemned on Monday what it said
was excessive use of force by state troops in Venezuela and said it was
unlikely to recognize results of elections on Sunday that were marred
by deadly clashes.
Read more: EU condemns Venezuela's use of force in election, may not recognize results
Sunday marked one of the
deadliest days since massive protests started in early April in
Venezuela and voters broadly boycotted an election for a constitutional
super-body sought by the unpopular leftist President Nicolas Maduro.
"We
will not recognize this election," said Antonio Tajani, head of the
European Parliament. "It is very clear that the current regime is
clinging to power. The will of the people is to change the regime. It is
necessary to go to elections now."
The bloc's executive European Commission also said it had "serious doubts" about whether to recognize the result.
Read more: EU condemns Venezuela's use of force in election, may not recognize results
4/28/16
Turkey PM Ahmet Davutoğlu Says New Constitution Will Guarantee Secularism - by Himanshu Goenka
Soothing rattled
nerves of secularists in Turkey, who were irked by comments the speaker
of the Parliament made Monday, Prime Minister Ahmet Davutoğlu made
reassurances Wednesday that its new constitution will guarantee
secularism. The speaker, Ismail Kahraman, had appealed for a religious
constitution for the Muslim-majority nation.
In a televised speech, Davutoğlu said: “Secularism will feature in the new constitution we draft as a principle that guarantees citizens’ freedom of religion and faith and that ensures the state is at an equal distance from all faith groups.”
The prime minister added that Turkey’s secular and democratic characters were “not up for debate.”
Despite being a Muslim-majority nation, the modern Turkish state has disavowed a state religion since the 1920s, and is widely regarded as a model of secular democracy in the Islamic world. The country is a member of NATO and is also in talks to become part of the European Union.
Kahraman, who as speaker of the Parliament is also overseeing the draft charter of the new constitution, raked up a controversy Monday when he said that the country should adopt a religious constitution, considering about 97 percent of its population follows Islam.
“We are a Muslim country ... Secularism cannot feature in the new constitution,” he reportedly said.
Given the outrage that followed his comments, Kahraman released a statement Tuesday, saying the views he expressed were personal and did not reflect the ruling party’s opinion.
The Justice and Development Party, led by President Recep Tayyip Erdoğan, has been in power since 2002 and among others, is also supported by Islamists.
In a televised speech, Davutoğlu said: “Secularism will feature in the new constitution we draft as a principle that guarantees citizens’ freedom of religion and faith and that ensures the state is at an equal distance from all faith groups.”
The prime minister added that Turkey’s secular and democratic characters were “not up for debate.”
Despite being a Muslim-majority nation, the modern Turkish state has disavowed a state religion since the 1920s, and is widely regarded as a model of secular democracy in the Islamic world. The country is a member of NATO and is also in talks to become part of the European Union.
Kahraman, who as speaker of the Parliament is also overseeing the draft charter of the new constitution, raked up a controversy Monday when he said that the country should adopt a religious constitution, considering about 97 percent of its population follows Islam.
“We are a Muslim country ... Secularism cannot feature in the new constitution,” he reportedly said.
Given the outrage that followed his comments, Kahraman released a statement Tuesday, saying the views he expressed were personal and did not reflect the ruling party’s opinion.
The Justice and Development Party, led by President Recep Tayyip Erdoğan, has been in power since 2002 and among others, is also supported by Islamists.
Read more: Turkey PM Ahmet Davutoğlu Says New Constitution Will Guarantee Secularism
5/29/15
Turkey: Off The Ballot But With Much At Stake, Turkey's President Fights For More Power
Turkey's June 7 election will elect 550 members of parliament, but
it's really all about one man who isn't even on the ballot: President
Recep Tayyip Erdogan.
The election could make history as Erdogan pushes for unprecedented power. Erdogan ran for president last summer, faced with the end of his three-term limit as prime minister, and now seeks to change the constitutional order. Under Erdogan's vision, his newly elected position as president, a mostly ceremonial role, would become the most powerful ruling position in Turkey.
While Erdogan is constitutionally required to remain above party politics as president, that hasn't stopped him from campaigning as if he's running for office himself. With enough votes, Erdogan and his Islamist-leaning Justice and Development Party (AKP) could create a super-presidency in which he could rewrite the constitution in his favor.
Turks will take to the polls June 7 to determine their country's future. Click on link below for a breakdown of the major issues surrounding this landmark election in Turkey.
Read more: Off The Ballot But With Much At Stake, Turkey's President Fights For More Power
The election could make history as Erdogan pushes for unprecedented power. Erdogan ran for president last summer, faced with the end of his three-term limit as prime minister, and now seeks to change the constitutional order. Under Erdogan's vision, his newly elected position as president, a mostly ceremonial role, would become the most powerful ruling position in Turkey.
While Erdogan is constitutionally required to remain above party politics as president, that hasn't stopped him from campaigning as if he's running for office himself. With enough votes, Erdogan and his Islamist-leaning Justice and Development Party (AKP) could create a super-presidency in which he could rewrite the constitution in his favor.
Turks will take to the polls June 7 to determine their country's future. Click on link below for a breakdown of the major issues surrounding this landmark election in Turkey.
Read more: Off The Ballot But With Much At Stake, Turkey's President Fights For More Power
5/23/15
Turkey: Upcoming Elections - Dark Clouds Over Turkey
With two weeks to go before a crucial parliamentary
election in Turkey, tensions are rising and some critics of President
Recep Tayyip Erdogan fear a new crackdown is starting to ensure that his
Justice and Development Party wins.
Mr.
Erdogan has a long history of intimidating and co-opting the Turkish
media, but new alarms were set off this week when criminal complaints
were filed against editors of the Hurriyet Daily News and its website
over a headline Mr. Erdogan had objected to.
Read more: Dark Clouds Over Turkey - NYTimes.com
That kind of brute manipulation of
the political process would be a serious mistake, further weakening the
country’s battered democracy and tainting whatever victory might emerge.
After
more than a decade of amassing power as Turkey’s leader, Mr. Erdogan
could be on the verge of realizing his dream of changing the
Constitution to make the president, rather than the prime minister, the
leading political authority. His party, known as A.K.P., would have to
win 330 seats in Parliament on June 7 — a three-fifths majority — to
take a proposed constitutional change to a referendum.
The party won only 326 seats in the last election in 2011, and on Friday Reuters reported that the most recent poll by the research firm Konda suggests that support for A.K.P. has declined.
Read more: Dark Clouds Over Turkey - NYTimes.com
12/29/13
Taxation France:: French ‘millionaire’s tax’ given constitutional green light
France’s Constitutional Council gave the green light on Sunday to a ‘millionaire’s tax’, to be levied on companies that pay salaries of more than 1-million euros (US$1.38-million) a year.
The measure, introduced in line with a pledge by President Francois Hollande to make the rich do more to pull France out of crisis, has infuriated business leaders and soccer clubs, which at one point threatened to go on strike.
It was originally designed as a 75 percent tax to be paid by high earners on the part of their incomes exceeding 1 million euros, but the council rejected this, saying 66 percent was the legal maximum for individuals.
The Socialist government has since reworked the tax to levy it on companies instead, raising the ire of entrepreneurs.
Under its new design, which the Council found constitutional, the tax will be an exceptional 50 percent levy on the portion of wages exceeding 1 million euros paid in 2013 and 2014.
Including social contributions, its rate will effectively remain roughly 75 percent. The tax will, however, be capped at 5 percent of the company’s turnover.
Read more: French ‘millionaire’s tax’ given constitutional green light - The Globe and Mail
The measure, introduced in line with a pledge by President Francois Hollande to make the rich do more to pull France out of crisis, has infuriated business leaders and soccer clubs, which at one point threatened to go on strike.
It was originally designed as a 75 percent tax to be paid by high earners on the part of their incomes exceeding 1 million euros, but the council rejected this, saying 66 percent was the legal maximum for individuals.
The Socialist government has since reworked the tax to levy it on companies instead, raising the ire of entrepreneurs.
Under its new design, which the Council found constitutional, the tax will be an exceptional 50 percent levy on the portion of wages exceeding 1 million euros paid in 2013 and 2014.
Including social contributions, its rate will effectively remain roughly 75 percent. The tax will, however, be capped at 5 percent of the company’s turnover.
Read more: French ‘millionaire’s tax’ given constitutional green light - The Globe and Mail
3/16/13
Hungary - Democracy Could Hungary Destroy European Economic Recovery and EU? - by Andy Langenkamp
Hungarian lawmakers on Monday overwhelmingly (265-11) approved a long amendment to the constitution which threatens democratic checks and balances. The biggest opposition party, the Socialists, boycotted the vote.
The bill enshrines in the constitution policies that were previously struck down as unconstitutional by Hungary's highest court. Among other things, it curtails the independence of judges, it wipes out 20 years of jurisprudence by banning the court to refer to rulings given while the previous constitution was in force, a law requiring students who received state scholarships to work in Hungary for years; a prohibition on political campaigns in private media; and a law allowing local authorities to fine or jail homeless people living on the street.
The New York Times quoted a very worried Peter Hack, a leading professor of constitutional law at ELTE University in Budapest: "We are not yet North Korea, but this amendment is extremely alarming because it removes constitutional control and checks over the legislature. It is a bald and dangerous power grab."
Read more: Andy Langenkamp: Hungary to Destroy European Economic Recovery and EU?
The bill enshrines in the constitution policies that were previously struck down as unconstitutional by Hungary's highest court. Among other things, it curtails the independence of judges, it wipes out 20 years of jurisprudence by banning the court to refer to rulings given while the previous constitution was in force, a law requiring students who received state scholarships to work in Hungary for years; a prohibition on political campaigns in private media; and a law allowing local authorities to fine or jail homeless people living on the street.
The New York Times quoted a very worried Peter Hack, a leading professor of constitutional law at ELTE University in Budapest: "We are not yet North Korea, but this amendment is extremely alarming because it removes constitutional control and checks over the legislature. It is a bald and dangerous power grab."
Read more: Andy Langenkamp: Hungary to Destroy European Economic Recovery and EU?
12/20/12
Egypt opposition vows to fight on against Islamist charter
Egypt's opposition, facing defeat over a new constitution in a referendum this weekend, urged its supporters to reject the Islamist-backed charter and pledged to fight on to amend it during elections expected next year.
Forty-eight hours before the second round of the plebiscite, the main opposition coalition of liberals, leftist, Christians and secular Muslims called for a "no" vote against a document it views as leaning too far towards Islamism.
The first day of voting last weekend resulted in a 57 percent majority in favor of the constitution, promoted by President Mohamed Mursi as a vital step in Egypt's transition to democracy almost two years after the fall of Hosni Mubarak.
The second stage on Saturday is expected to produce another "yes" vote as it covers areas of the country that are seen as more conservative and likely to back Mursi.
The National Salvation Front, the main opposition coalition, said a "no" vote meant taking a stand against attempts by the Muslim Brotherhood, Mursi's political backers, to dominate Egypt.
Read more: Egypt opposition vows to fight on against Islamist charter Asharq Alawsat Newspaper (English)
Forty-eight hours before the second round of the plebiscite, the main opposition coalition of liberals, leftist, Christians and secular Muslims called for a "no" vote against a document it views as leaning too far towards Islamism.
The first day of voting last weekend resulted in a 57 percent majority in favor of the constitution, promoted by President Mohamed Mursi as a vital step in Egypt's transition to democracy almost two years after the fall of Hosni Mubarak.
The second stage on Saturday is expected to produce another "yes" vote as it covers areas of the country that are seen as more conservative and likely to back Mursi.
The National Salvation Front, the main opposition coalition, said a "no" vote meant taking a stand against attempts by the Muslim Brotherhood, Mursi's political backers, to dominate Egypt.
Read more: Egypt opposition vows to fight on against Islamist charter Asharq Alawsat Newspaper (English)
12/15/12
Egyptian Islamists: 'We've Won Elections, Now Democracy Isn't Good Enough?' By Joyce Hackel
Rival protesters clashed in Cairo Wednesday, as tensions continued to escalate over President Mohammed Morsi’s powers and a new constitution.
Tarek Masoud, a professor of public policy at Harvard University’s John F. Kennedy School of Government, says the cleavages between liberals and Islamists run deep in Egyptian society, and that even deep concessions by Morsi to his opponents would not bridge the divide.
“Let’s say [Morsi] conceded to every one one of those demands. Well then you could imagine that his hardcore supporters, including Salafists who may even believe that the current constitution isn’t Islamic enough, they’re going to be very disappointed,” says Masoud. “And we’ve already seen dark hints from some quarters of assassinations or violence that they would take part in if this constitution didn’t pass.”
Read more: Egyptian Islamists: 'We've Won Elections, Now Democracy Isn't Good Enough?' | PRI's The World
Tarek Masoud, a professor of public policy at Harvard University’s John F. Kennedy School of Government, says the cleavages between liberals and Islamists run deep in Egyptian society, and that even deep concessions by Morsi to his opponents would not bridge the divide.
“Let’s say [Morsi] conceded to every one one of those demands. Well then you could imagine that his hardcore supporters, including Salafists who may even believe that the current constitution isn’t Islamic enough, they’re going to be very disappointed,” says Masoud. “And we’ve already seen dark hints from some quarters of assassinations or violence that they would take part in if this constitution didn’t pass.”
Read more: Egyptian Islamists: 'We've Won Elections, Now Democracy Isn't Good Enough?' | PRI's The World
12/4/12
Egypt: Morsi flees as angry crowd storms Cairo palace in clash with riot police
Egyptian riot police have fired tear gas at protesters demonstrating against President Mohamed Morsi near the presidential palace in Cairo. At least 18 people have been injured in violent clashes.
Presidential sources say Morsi left the palace as the crowd started getting out of control.
Protesters broke through police lines and barbed wire barricades in front of the presidential palace, with riot police responding with tear gas.
To avoid further confrontation police forces then reportedly retreated, allowing the demonstrators to move closer to the palace.
Thousands of demonstrators marched to the palace in protest of Morsi's decree which grants him near absolute powers, and a draft constitution which was quickly adopted by his allies.
Read more: Morsi flees as angry crowd storms Cairo palace in clash with riot police — RT
Presidential sources say Morsi left the palace as the crowd started getting out of control.
Protesters broke through police lines and barbed wire barricades in front of the presidential palace, with riot police responding with tear gas.
To avoid further confrontation police forces then reportedly retreated, allowing the demonstrators to move closer to the palace.
Thousands of demonstrators marched to the palace in protest of Morsi's decree which grants him near absolute powers, and a draft constitution which was quickly adopted by his allies.
Read more: Morsi flees as angry crowd storms Cairo palace in clash with riot police — RT
12/3/12
Egypt: Morsi’s-way-‘out’ - by Dina Ezzat
President Mohamed Morsi is expected to take to the airwaves today and address the nation — not just his Muslim Brotherhood and Salafi followers, to whom he spoke last Friday — and convince them he is committed to reconciliation.
The text of Morsi’s message was still being pondered on Wednesday. Its aim, though, was clear — to contain reactions to the constitutional declaration issued last Thursday in which Morsi effectively neutered the judiciary at a time when, courtesy of an earlier constitutional declaration, he already holds all legislative and executive power.
The president’s advisors and other informed sources agree Morsi will not rescind the constitutional declaration. What he will do depends on who is talking. Some say the most likely scenario is an early referendum on the controversial draft constitution being finalised by a Constituent Assembly that has lost a third of its members and as a consequence is dominated more than ever by Islamists. The move, they say, has the advantage of speeding up the de facto elimination of the constitutional declaration which places Morsi’s presidential decrees beyond judicial review.
Other scenarios revolve around the same trade off, exchanging a widely rejected constitutional declaration for a controversial constitution.
“If Morsi comes out to tell us we have to accept one unacceptable alternative or another that’s equally unacceptable then we will simply tell him that we have no interest in his offers. If he cannot offer anything better then we have no interest in him… He can leave as Mubarak left,” said Amal, a teacher with no partisan affiliation.
Chants calling on Morsi to step down were not the loudest in Tahrir Square, though they could be heard in Cairo as well as other governorates which witnessed violent clashes. And the fact that offices of both the Muslim Brotherhood and its political wing, the Freedom and Justice Party (FJP), were attacked in a number of towns made the feelings of at least some of the demonstrators crystal clear.
If Morsi does not find a way out of the current quagmire soon, argues lawyer, activist and founding member of the Egyptian Current Islam Lotfi, then his presidency is in danger of sinking.
For thje complete report: Morsi’s-way-‘out’ - Al-Ahram Weekly
The text of Morsi’s message was still being pondered on Wednesday. Its aim, though, was clear — to contain reactions to the constitutional declaration issued last Thursday in which Morsi effectively neutered the judiciary at a time when, courtesy of an earlier constitutional declaration, he already holds all legislative and executive power.
The president’s advisors and other informed sources agree Morsi will not rescind the constitutional declaration. What he will do depends on who is talking. Some say the most likely scenario is an early referendum on the controversial draft constitution being finalised by a Constituent Assembly that has lost a third of its members and as a consequence is dominated more than ever by Islamists. The move, they say, has the advantage of speeding up the de facto elimination of the constitutional declaration which places Morsi’s presidential decrees beyond judicial review.
Other scenarios revolve around the same trade off, exchanging a widely rejected constitutional declaration for a controversial constitution.
“If Morsi comes out to tell us we have to accept one unacceptable alternative or another that’s equally unacceptable then we will simply tell him that we have no interest in his offers. If he cannot offer anything better then we have no interest in him… He can leave as Mubarak left,” said Amal, a teacher with no partisan affiliation.
Chants calling on Morsi to step down were not the loudest in Tahrir Square, though they could be heard in Cairo as well as other governorates which witnessed violent clashes. And the fact that offices of both the Muslim Brotherhood and its political wing, the Freedom and Justice Party (FJP), were attacked in a number of towns made the feelings of at least some of the demonstrators crystal clear.
If Morsi does not find a way out of the current quagmire soon, argues lawyer, activist and founding member of the Egyptian Current Islam Lotfi, then his presidency is in danger of sinking.
For thje complete report: Morsi’s-way-‘out’ - Al-Ahram Weekly
1/4/12
'Democracy Is Being Trampled On in Hungary'
Public anger over Hungary's new constitution and a raft of other new laws may be the least of Prime Minister Viktor Orban's problems. Financial markets, it turns out, are just as wary -- and could drive the country to the brink of insolvency.
The European Commission on Tuesday announced that it was combing through both the new constitution, which took effect on Jan. 1, and a new law pertaining to Hungary's central bank, the Magyar Nemzeti Bank (MNB), to determine if they adhere to European Union treaties. Furthermore, the Commission said on Tuesday that the EU and the International Monetary Fund (IMF) have not yet decided whether to resume negotiations over much-needed financial assistance for Budapest.
It didn't take long for markets to react. Yields on 10-year Hungarian bonds spiked to 10.7 percent on Wednesday, continuing a sharp rise since the talks over a €20 billion ($26 billion) EU/IMF aid package for Hungary collapsed in December. The country's currency, the forint, plunged to an all-time low against the euro on Wednesday morning. Both Standard & Poor's and Moody's slashed Hungary's credit rating to junk status in the weeks before Christmas. Hungary needs to refinance debt worth €4.8 billion in the coming months.
The aid talks were broken off due to concerns about new laws regulating the central bank, pushed through by Orban's center-right Fidesz party, which controls two-thirds of the seats in parliament. Of particular concern are provisions which allow the government to appoint the bank's vice presidents, thus infringing on MNB's independence. Furthermore, the law increases the number of vice presidents from two to three, allowing Orban to appoint one immediately. In addition, the committee which sets monetary policy has been expanded, with new members to be appointed by the Fidesz-run government.
For more: The World from Berlin: 'Democracy Is Being Trampled On in Hungary' - SPIEGEL ONLINE - News - International
The European Commission on Tuesday announced that it was combing through both the new constitution, which took effect on Jan. 1, and a new law pertaining to Hungary's central bank, the Magyar Nemzeti Bank (MNB), to determine if they adhere to European Union treaties. Furthermore, the Commission said on Tuesday that the EU and the International Monetary Fund (IMF) have not yet decided whether to resume negotiations over much-needed financial assistance for Budapest.
It didn't take long for markets to react. Yields on 10-year Hungarian bonds spiked to 10.7 percent on Wednesday, continuing a sharp rise since the talks over a €20 billion ($26 billion) EU/IMF aid package for Hungary collapsed in December. The country's currency, the forint, plunged to an all-time low against the euro on Wednesday morning. Both Standard & Poor's and Moody's slashed Hungary's credit rating to junk status in the weeks before Christmas. Hungary needs to refinance debt worth €4.8 billion in the coming months.
The aid talks were broken off due to concerns about new laws regulating the central bank, pushed through by Orban's center-right Fidesz party, which controls two-thirds of the seats in parliament. Of particular concern are provisions which allow the government to appoint the bank's vice presidents, thus infringing on MNB's independence. Furthermore, the law increases the number of vice presidents from two to three, allowing Orban to appoint one immediately. In addition, the committee which sets monetary policy has been expanded, with new members to be appointed by the Fidesz-run government.
For more: The World from Berlin: 'Democracy Is Being Trampled On in Hungary' - SPIEGEL ONLINE - News - International
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