The session was expected to focus on the election of the new president and the priorities of the Danish EU presidency. However, on Tuesday (17 January) it became known that Orbán had invited himself to address the MEPs and rebuke the criticism coming from what his spokesperson called "yet another attack from the international left".

The European Commission, led by EPP-affiliated President José Manuel Barroso, which could hardly be seen as part of this "conspiracy", started legal action yesterday over new legislation that came into force at the beginning of the year under Hungary's new constitution.

The Commission sent three "Letters of Formal Notice" to Hungary – the first stage in the EU's infringement procedure – and decided to raise further related issues with the Hungarian authorities to identify whether further action may be warranted under EU law, notably regarding the independence of the judiciary. The Hungarian authorities now have one month to respond to the Commission's concerns.

For the EU executive the Hungarian legislation conflicts with EU law by putting into question the independence of the country's central bank and data protection authorities and by the measures affecting its judiciary.

Brussels made an effort to keep its demarche low key, with Barroso making a doorstep announcement, instead of a full-scale press conference with questions and answers.

"Hungary, like all Member States, is obliged by the EU Treaties to guarantee the independence of its National Central Bank and its Data Protection Authority and the non discrimination of its judges. The Commission is determined to take any legal steps necessary to ensure that the compatibility with European Union legislation is maintained," Barroso said.

Central Bank in focus

The independence of Hungary's Central Bank appears as a key issue in a very difficult economic context for Hungary, which is seeking  'precautionary aid' from the EU and the International Monetary Fund, saying Hungary was seeking "a kind of insurance policy" against possible future financing difficulties.

Under the new Hungarian law, the Economy Minister can participate directly in the meetings of the Central bank Monetary Council, offering to the government the possibility to influence it from the inside.

Similarly, the agenda of the Central Bank meetings needs to be sent to the government in advance, thus impeding its capacity to hold confidential discussions. Also, changes in the remuneration scheme appear to put pressure on the Central bank. Finally, the Governor and the members of the Monetary Council have to take an oath (of fidelity to the country and its interests) whose text is by the Commission as problematic.

The Commission has also doubts on the rules of dismissal for the Governor and the members of the Monetary Council which are prone to political interference

Informal talks between Budapest, the IMF and the Commission with a view to offering the country a financial bailout broke down in mid-December, as Hungary indicated it was about to change the laws regarding the independence of its central bank.

Hungary urgently needs the money to maintain access to international capital markets this year; it needs to refinance €4.8 billion of debt in the coming months.

Fresh talks are scheduled between Hungary, the IMF and the Commission in Washington on 11 January and in Budapest on 16-19 January.

Another aspect of concern for the EU is the situation of the judiciary in Hungary. Under new Hungarian legislation, also 274 judges (including judges at the Supreme Court) are being compulsorily retired in contradiction to EU rules.

The government also receives powers over the data protection authority that contradict the EU Treaties, which require the independence of national data protection authorities

In the European Parliament, the largest political group is the centre-right European Peoples' Party, to which a Hungarian MEP is a vice President, while Orbán is President of the EPP party. It is therefore not surprising that Orbán has the support of the EPP, at least during the one-month period for Hungary to reply to the Commission's letters. Two more monts after the Hungarians response could elapse before the Commission would decide on its next steps.

"There is no problem as long as it is not proven that Hungary is in breach of EU law," said Jean-Pierre Audi, president of the French delegation of the EPP group. Audi expressed doubts as to whether the EU executive was sufficiently equipped to pursue its investigation.