Restructuring Terms and Trimming Pay at the Central Bank
This term can be extended just once for an additional four years. The current MNB Governor, Mihály Varga, was appointed last year to a six-year term that runs through 2031. Papcsák Ferenc, a former Fidesz mayor of Zugló, currently leads the central bank’s supervisory board alongside members László Madarász, Dr. Gábor András Szényei, Dr. Zoltán Kovács, Barna Elek Szabó, and Gábor Lackó.
Financial remuneration for the board is set for a steep contraction. Previously, the board president pulled in a monthly base salary equivalent to 70 percent of the MNB governor’s base pay, while standard members received 60 percent. The proposed legislation slashes those figures to 35 percent and 30 percent, respectively. According to Hvg.hu, Governor Varga’s base salary last year reached a gross 6.8 million Hungarian forints.
Shifting Parliamentary Appointments and Expanded Oversight
The composition of the oversight body will also see adjustments. The board currently consists of a president and three members elected by Parliament, alongside a representative and a designated expert chosen by the government minister. The proposed framework outlines that the National Assembly would instead elect two members based on recommendations from the parliamentary committee responsible for budgetary affairs and another two from the economic affairs committee, alongside two additional members delegated directly by the minister.
While Parliament will continue to select the board president from either the legislative or ministerial nominees, the appointment process introduces a procedural pivot. The supervisory board members themselves will nominate candidates for the presidency, replacing the previous system where the governing parties held sole discretion over the nomination.
Beyond structural and financial changes, the legislative package strengthens the central bank’s ownership control mechanisms. It mandates regular and extraordinary auditing duties for the supervisory board, backed by the creation of a new internal audit organization operating under the board’s direct command. The regulatory scope will also extend explicitly to majority-owned MNB business entities and foundations established by the central bank.
