Hungary’s new rule of law and how it could affect the local currency
MEPs are concerned about emergency legislation in Hungary against COVID-19 and call on the European Commission and the EU Council to protect Hungarian citizens and the rule of law.
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During the speeches, most deputies emphasized that the emergency measures taken by the Hungarian government to combat the pandemic, including declaring a state of emergency without restrictions, did not comply with EU rules and warned of an increased risk to democracy.
Several members of the European Parliament called on the European Commission to complete a thorough study of legal changes and open a violation procedure. In particular, they asked to stop Hungary’s payments under new financial prospects and a recovery plan if the rule of law is not respected.
They also criticized the passive position of the EU Council and insisted that it be promoted according to procedure 7, initiated by the parliament.
Some members of the European Parliament defended parliamentary decisions in Hungary and compared exceptional measures taken in the country with measures taken by other EU member states, such as France or Spain.
In its resolution of April 17, parliament already stated that the decision in Hungary to extend the state of emergency for an indefinite period, allowing the government to order the decree and weakening parliamentary oversight “is completely incompatible with European values.”
On the eve of the debate, Hungary accused the European Parliament of wanting to make a decision on the rule of law in the country, while not letting it defend its position.
Negative consequences on the economy
The current situation significantly disrupts the political and economic landscape in the country. The turmoil created by the recent occurrences will definitely have its toll on local currency as well as the economy in general. The national currency could devaluate notably, having a direct impact on FX trading in the country. And we are talking about the largest financial market in the world here – Forex.
Timmermans
Rule of Law Commissioner France Timmermans presented to the European MPs the idea of a mechanism for the annual assessment of compliance with the rule of law in the EU. He bears it for a long time, but not everyone agrees with the need to change the mechanism. The politician could not hold back emotions:
Timmermans declared that any vile decision of the Nazi courts was based on laws. They were in fundamental contradiction with the rule of law, in conflict with fundamental human rights – but these were laws.
So we have a historical choice: either the rule of law or the rule of law, in which we become a dictatorship and cannot call ourselves a democratic society.
Judicial and legal reforms in Poland and Hungary are of particular concern to Brussels. Warsaw and Budapest regard the actions of European leadership as pressure, not only political but also financial.
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