EU 'assessing' Hungary's controversial new laws

(BRUSSELS) - The European Commission reacted cautiously Friday after the Hungarian parliament passed controversial legislation criticised by top EU and US officials.

"We will be assessing the legal scope of the new laws," a spokesman for the EU's executive arm told AFP.

"We have reiterated our concerns to the Hungarian authorities in the past few days. Of course the Commission remains open to help Hungary in fully implementing EU law," the spokesman said.

The parliament, dominated by Prime Minister Viktor Orban's centre right Fidesz party, overwhelmingly adopted a reform of the central bank that critics say increases the government's influence over monetary policy.

European Commission president Jose Manuel Barroso had urged Orban to withdraw the controversial law, one of several internationally-criticised bills that Hungarian lawmakers adopted on Friday.

US State Secretary Hillary Clinton has also repeatedly expressed her concern over the state of democracy in Hungary.

Hungary can ill afford to anger its international partners at a time when it is seeking a 15-20 billion-euro ($20-25 billion) credit line from the EU and the International Monetary Fund (IMF).

The lenders walked out of preliminary talks on December 16 over the law that would see the central bank disappear as a separate institution and more political appointees added to the committee that decides monetary policy.

The independence of national central banks is a key condition to enter the eurozone, of which Hungary is not yet a member.