08 SEP 2010

ForexYard

BUDAPEST, Sept 7 (Reuters) - Hungary should change its law which caps central bankers' salaries as it infringes central bank independence and the European Union's (EU) treaty, the EU said in a document obtained by Reuters on Tuesday.

Hungary's Economy Ministry said late on Monday that the Commission had asked the government to provide it with further information about a public sector wage cap introduced on Sept. 1, which also affects the pay of central bankers.

The cap means a 75 percent cut to about 2 million forints ($8,900) in central bank Governor Andras Simor's monthly salary.

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