Afbeelding
26 jun 17
26 jun 17
Monetary financing by the Hungarian Central Bank

Question for written answer to the Commission
Rule 130
Sophia in 't Veld (ALDE)


Subject: Monetary financing by the Hungarian Central Bank
Since 2014 the ECB Annual Reports refer to monetary financing issues regarding six foundations. In March 2016, they had to publish information about €1bn of investments of central bank resources. Most of it is used to acquire Hungarian government securities. The ECB repeatedly asked to ensure that central bank resources are not used for financing the State, as this is banned under Art 123TFEU. Last year, in response to questions of MEP Bullmann [1] the ECB stated it is monitoring the situation. There seems to have been no change in the practice of monetary financing, but the ECB has not intervened so far. Such prolonged non-compliance by a Member State undermines both fiscal discipline and the rule of law.
 
Based on the ongoing monitoring and available information, does the Commission consider that this is a case of violation of Article 123 TFEU?
If yes, will the Commission raise the issue in the recently started political dialogue with the Hungarian government, relating both to the respect of Union law and the respect of the Union's common values as enshrined in Article 2 TEU?
Alternatively, will the Commission initiate infringement proceedings in order to ensure respect to both fiscal discipline and the rule of law?

[1] Question Udo Bullmann (October 2016)
https://www.ecb.europa.eu/pub/pdf/other/161021__bullmann.en.pdf?436cb8a13396a534f154eb4bdf49616a

 

Written Question to the [European Central Bank / Chair of the Single Supervisory Mechanism Board / Chair of the Single Resolution Mechanism Board]
Rule 131/131a
Sophia 't Veld

 

Since 2014, the ECB Annual Reports refer to monetary financing issues regarding six foundations. In March 2016, they had to publish information about €1bn of investments of central bank resources. Most of it is used to acquire Hungarian government securities. The ECB repeatedly asked to ensure that central bank resources are not used for financing the State, as this is banned under Art 123TFEU. Last year, in response to questions of MEP Bullmann [1], the ECB stated that it is monitoring the situation. There seems to have been no change in the practice of monetary financing, but the ECB has not intervened so far. Such prolonged non-compliance by a Member State undermines both fiscal discipline and the rule of law.
 
Based on its monitoring and the information published by the foundations, does the ECB consider there is evidence of a violation of Article 123 TFEU?

If so, will infringement proceedings be started?

[1]https://www.ecb.europa.eu/pub/pdf/other/161021__bullmann.en.pdf?436cb8a13396a534f154eb4bdf49616a

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