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European Union Warns Hungary

In early January 2012, the European Union (EU) gave Hungary an ultimatum. The European Commission, the executive branch of the EU, warned that it would take legal action by January 17 unless the country modified the new laws it passed at the end of 2011. The laws, along with a new constitution, removed regulations on Prime Minister Viktor Orban's government in areas such as the media, central banking, and the judiciary. Orban relented, and in a speech to parliament said, the issue "could swiftly be resolved and remedied." In a separate warning, the European Commission said Hungary faced a possible loss of development assistance if the country did not do more to rein in its budget deficit. That was followed in March with the European Union telling Hungary it would suspend about 500 million euros in development aid unless the country show progress in cutting its deficit to 2.5% of GDP by June.

President Schmitt resigned in April 2012 after Budapest's Semmelweis University withdrew his doctorate degree. A university committee issued a report that accused Schmitt of plagiarizing in his 1992 thesis. In May, the parliament elected Janos Ader, 52, Hungarian president.