Page 46 - bne_May magazine 2023_20230503 BRICS

46 I Central Europe bne May 2023
summoned to Washington by Secretary of State David Blinken to give an account of the situation in Hungary.
Orban himself has brandished his support for disgraced former US president Donald Trump, tweeting when Trump was charged with paying hush money to a porn star for keeping quiet about their relationship, "Keep on fighting, Mr. President! We are with you, @realDonaldTrump!"
In the radio interview, Orban also noted the government will take decisions on phasing out price caps when inflation "falls under a certain level", but did not specify details.
"Government measures to reduce inflation so far have not had a sufficient effect to warrant removing the price caps, but inflation should accelerate
in May in June", he added.
Headline inflation in March slowed
to 25.2% from 25.4% in the previous month, but core inflation continued to trek higher from 25.2% in February to 25.7% due to higher processed food and service prices, suggesting strong underlying inflationary pressures in the economy. Analysts predict that the phase-out of price caps could lift the headline data by 1-2pp.
Slovak central bank chief under pressure after conviction for bribery
Albin Sybera
Slovak central bank Governor Peter Kazimir has refused to resign after being found guilty of bribery by the country's Special Criminal Court (STS) and fined €100,000.
Caretaker Prime Minister Eduard Heger called for Kazimir to step down and Slovak President Zuzana Caputova
said that he “should consider stepping down” even though the court ruling is not yet in legal force.
Heger told a news conference in front of the central bank headquarters on April 13 that it was “unacceptable for a person to be convicted of bribery by a court to hold the post of governor of this respected institution”.
However, Kazimir, who has always protested his innocence, has said he will appeal the decision. The former Smer party finance minister was appointed governor in 2019 under the premiership of the populist leftist party's leader Robert Fico, who is leading opinion polls ahead of snap elections scheduled for September. Any appeal is likely to be heard after the election.
SNB governors, who are appointed by the president, have a six-year mandate and can serve two terms.
“I’m innocent,” Kažimír said in an
www.bne.eu
emailed statement to the Financial Times. “I’m yet to receive the court’s decision and order. I didn’t commit any crime and I’m confident I will prove my innocence during the main trial or an appeal in Slovakia or in the EU.”
In his statement, Kazimir implied that the case was political. "I will not react nor comment on politicians’ statements during the ongoing pre-election campaign. I believe in the presumption of innocence. I’m executing all my duties responsibly and honourably.”
The head of the National Bank of Slovakia (NBS) is accused of bribing the former president of Slovak Customs, Frantisek Imrecze, while finance minister. Imrecze
admitted to accepting a bribe from Kazimir. The case involves an alleged secret system of salary supplements paid to top officials under Fico's government.
Kazimir, who represents Slovakia at the European Central Bank, is one of the most high-profile central bank governors from Emerging Europe. He has always taken a hawkish stance on interest rates and, as finance minister, was one of
the toughest in the EU's Ecofin council over how to handle Greece during that country's economic crisis in 2009.
Kazimir is also the most profile Smer politician or government official convicted under the current right-wing government's anti-corruption drive, which followed the
Peter Kazimir has been one of the most prominent central bank governors in the CEE region. / NBS