May 5th, 2010

Senior Fidesz official cautions on central bank interference

Mihaly Varga, who will head the office of Hungary’s next prime minister Viktor Orban, said on Wednesday that in the current global economic climate Fidesz should move carefully on the issue of the independence of the central bank.

Varga told commercial television TV2 that it was imperative that economic and monetary policy should fall into lockstep. But asked whether the Fidesz government would change the law in order to get rid of central bank governor Andras Simor, he said “we have to move very carefully.”

Varga, who was Orban’s finance minister when Fidesz last governed, insisted that the law on the central bank would not be among the first to be amended.

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