Hungary’s Prime Minister Viktor Orban has assured Brussels that the government does not intend to use the option to merge the central bank with the market regulator.
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The adoption of the central bank reforms has enlisted criticism from the EU, the European Central Bank and the International Monetary Fund (IMF).
This step by the Hungarian government prompted the EU and IMF to walk out of talks on a possible bailout for the region worth about EUR15-20 billion.
The measure is said to increase government influence over monetary policy and independence of national central banks is a key condition to enter the Eurozone, of which Hungary is not yet a member.
European Commission head Jose Manuel Barroso tried to hold off Hungary from adopting the legislation until it is brought into line with EU law but the U-turn taken by the country, which has already received a bailout in 2008 of EUR20 billion has hampered its chances of receiving any more bailouts.
