EN  
 
 
 OPINION OF THE EUROPEAN CENTRAL BANK 
of 12 April 2011 
on the draft Constitution with regard to the Magyar Nemzeti Bank 
(CON/2011/33) 
 Introduction and legal basis
 
On 16 March and 23 March 2011 the European Cent ral Bank (ECB) received a request from the 
Hungarian Ministry of Public Administration and Ju stice and the Hungarian Ministry of the National 
Economy respectively for an opinion on the draft Constitu tion (hereinafter the ‘draft Constitution’). On 
4 April 2011, the Hungarian Ministry of Public Administration requested the ECB’s opinion also on two amending proposals that had been submitted to th e Parliament for adoption before 11 April 2011.  
The ECB’s competence to deliver an  opinion is based on Articles 127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the third indent  of Article 2(1) of Council Decision 98/415/EC of 
29 June 1998 on the consultation of the European Ce ntral Bank by national authorities regarding draft 
legislative provisions
1, as the draft Constitution relates to the Magyar Nemzeti Bank (MNB). In 
accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central 
Bank, the Governing Council has adopted this opinion. 
 
1.  Purpose of the draft Constitution 
The purpose of the draft Constitution is to replace Law XX of 1949 on the Constitution of the Republic of 
Hungary (‘Law XX of 1949’). According to the e xplanatory memorandum, Law XX of 1949 needed to be 
replaced mainly due to its structure and wording that has become obsolete. This is also confirmed by the 
large number of Constitutional Court decisions and the 34 amendments introduced since 1989. 
The draft Constitution2 retains the provision that the MNB is the central bank of Hungary and is 
responsible for monetary policy in the manner specifie d by law. It also overall retains the appointment 
procedure for the MNB’s Governor, except that the term is extended from six to nine years and the 
                                                 
1 OJ L 189, 3.7.1998, p. 42. 
2  Article 41. 
 
2 MNB’s Deputy Governors will be ap pointed by the MNB’s Governor3. The Governor will also be a 
Fiscal Council member. The MNB’s reporting obligations and its Governor’s legislative powers will remain unchanged.  The two amending proposals foresee that (i) the Law on the Magyar Nemzeti Bank will be a qualified 
legal act
4 (hereinafter the ‘first amending proposal’)5 and (ii) the appointment and term of office of the 
MNB’s Governor and the Deputy Gove rnors will be amended in the dr aft Constitution, and the Law on 
the MNB and the Law on the supervision of the financ ial intermediary system will be qualified legal acts 
(hereinafter the ‘second amending proposal’)6. 
 
2. Compatibility of the Constitution with the T reaties and the Statute of the European System 
of Central Banks and of the European Central Bank 
2.1  The ECB has assessed the compatibility of Hungari an legislation with the requirements of Union 
law relating to central bank independence, monetary  financing and also the MNB’s participation in 
the ESCB and, prospectively, in the Eurosystem in its Convergence Reports since 2004, including 
Law XX of 1949. In the latest 2010 Convergence Report, the ECB found that Article 32/D of 
Law XX of 1949, which establishes the MNB’s power s in the field of monetary policy, does not 
recognise the ECB’s powers in this field. The E CB notes that the relevant provision in the draft 
Constitution remains the same as in Law XX of 1949.  Hungary is a Member State with a derogation 
and must therefore comply with all adaptati on requirements under the Treaty. The Hungarian 
authorities should, therefore, take this opportunity  to make the necessary adjustments to ensure the 
MNB’s full integration into the Eurosystem which must enter into force on Hungary’s adoption of 
the euro.  
2.2. The ECB would like to refer to its previous stance observing that Union law does not prescribe the 
manner in which national legislati on should be adapted to achieve compatibility with the relevant 
requirements under the Treaty and the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of  the ESCB’). This may be achieved by referring 
to the Treaty and the Statute of the ESCB, by inco rporating provisions thereof and referring to their 
source, by deleting any incompatibility, or by using a combination of these methods
7. Depending on 
the national legislator’s choice, and in line with th e hierarchy of national legislation, such changes 
may be introduced in constitutional provi sions, ordinary legislation, or both. 
                                                 
3  According to the second amending propos al, the current appointment procedur e also remains overall unchanged: 
Hungary’s President appoints the Governor and the Deputy Go vernors for six years, except that the Constitution will no 
longer provide for the Prime Minister’s right to recommend a candidate. 
4  A qualified or ’organic’ legal act could be adopted or amended only by a two-thirds majoriry vote.  
5  Amending proposal T/2627/55. 
6  Amending proposal T/2627/129. 
7  Convergence Report May 2010, Section 2.2.2.2 p. 17. CON/2011/ 9, paragraph 2.2. All ECB documents referred to are 
available on the ECB’s we bsite at www.ecb.europa.eu. 
 
3 3. Relationship between the draft Constitu tion and the Law on the Magyar Nemzeti Bank 
According to the draft Constitution, the MNB’s G overnor may appoint the Deputy Governors, while 
according to Article 51(1) of the Law on the Magyar  Nemzeti Bank, Hungary’s President may appoint 
and dismiss the Deputy Governors on the basis of the Governor’s recommendation and the Prime 
Minister’s consent. The ECB understands that due to its position in the legislative hierarchy, the draft 
Constitution will prevail. Adopting the second amendi ng proposal would overall maintain the current 
appointment procedure.  
On the other hand, the draft Constitution no longer provides that Hungary’s President dismisses the 
Deputy Governors but does not reassign this right. Therefore, the ECB understands that Hungary’s 
President remains entitled to dismiss the Deputy G overnors on the basis of the Law on the Magyar 
Nemzeti Bank.  
 
This opinion will be published on the ECB’s website.  
 
 Done at Frankfurt am Main, 12 April 2011.  
[signed] 
 
The President of the ECB 
Jean-Claude TRICHET