BUDAPEST, Jan 17 (Reuters) - The European Union is expected to launch legal action against Hungary on Tuesday, a sign of serious concern about the government's authoritarian policies that could threaten its bid to secure the international aid it needs to remain solvent.

Prime Minister Viktor Orban's conservative Fidesz party has been condemned by the international community for introducing measures that threaten the independence of the media, the judiciary and the central bank since sweeping to power in 2010.

Aid talks collapsed last year in a row with lenders over the new legislation and the International Monetary Fund said Hungary needs the EU's blessing before talks on a new financial package can start.

EU officials, who are also struggling to contain a debt crisis in the euro zone, have led criticism of Orban's policies. Legal proceedings against a country's laws are rare and reflect growing fears about Hungary in European capitals.

The government has said it may rework its policies but Deputy Prime Minister Tibor Navracsics gave no indication on Tuesday of last-minute concessions to stop the EU Commission launching the proceedings on Tuesday.

"On the issues of central bank law and data protection we are close to possibly finding a solution in the near future ... if the aim is to further strengthen the independence of the head of the data protection authority, I will surely not oppose that," he said.

"As far as the general retirement age of judges and prosecutors ... is concerned, I think there is a real professional debate on those issues."

The EU is concerned that the new legislation has jeopardised the independence of the central bank, forced hundreds of judges to retire early and left the Hungarian data protection agency open to political interference. It has voiced "very serious" concerns that the laws may violate the EU treaty.

LAST DITCH EFFORT

Hungarian diplomats in Brussels were on Tuesday involved in a last-ditch effort to explain their government's position.

The start of the infringement proceeding would mean that Hungary must modify the disputed laws or face a potential lengthy legal battle that could end up in the European Court of Justice. This may hold up talks on financial assistance.

With its economy headed into stagnation and investor confidence ruined by ad hoc measures that included Europe's highest financial sector tax, and hefty debt payments due this year, Hungary needs a new funding deal to prevent a market crisis.

"The most negative reaction would be if the government starts disputing the procedure which in turn could seriously delay the start of the official talks regarding external financial assistance," Unicredit said in a note on Tuesday.

Hungary sold more debt than planned at an auction last week, but at yields above 9 percent, widely seen as unsustainable, while the forint is stuck on the weak side of 300 per euro after record lows hit this month on a string of ratings downgrades to "junk" debt status.

With parts of a $13 billion private pension transfer, which produced a one-off 2011 fiscal surplus, and some cash reserves still in government coffers, Hungary is under no immediate pressure to clinch a deal.

But given high borrowing costs muddling through without a backstop is not an option, analysts say.

"Failure to reach an agreement would mean very serious trouble for Hungary," said analyst Zoltan Torok at Raiffeisen.

"In the short run, the government could probably continue to repay debt, but this is the short term, half a year, or a year, give or take. It can't afford to go it alone for the long haul."

Orban's point man with the IMF, Tamas Fellegi, returned from Washington to Europe empty-handed last week and was told "tangible steps" on policies to stabilise the economy were needed before talks could even start about a financing agreement.

The European Union is expected to launch legal action against Hungary on Tuesday, a sign of serious concern about the government's authoritarian policies that could threaten its bid to secure the international aid it needs to remain solvent.

This from the clowns that are afraid to let European countries have a referendum on the Lisbon treaty.

Hungarians are filth.

NOZZLE wrote:

Hungarians are filth.

So is most of the EU - what's your point?

Pot calling kettle.

NOZZLE wrote:

Hungarians are filth.

It's likely you dislike magyars for real, I will start to believe you are from the Balkans for real. I've been tripping in Romania, and especially in Transylvania, cities use to be split in tree main quarter, one for the catholic Magyar, one for the greeks orthodox Romanian, and another one for the German rooted Protestant populations --Just like in Hermanstadt, a.k.a. Sibiu.

B.t.w, I see no concern with the fact that the Hungarian refuse
to comply with the Brussel non elected commissars , in order to save what is their own customs and right.

NOZZLE wrote:

Hungarians are filth.

Why? Because they won't bow down and kiss the nonelected EU's ass? I love the Hungarian people, they are a kind, helpful people that love life and want the government to stay the hell out of their lives, like Conservative Americans. I own a house there and my neighbors are wonderful people. Have you even been to Hungary? If not, then why the hard feelings against them?

the central bank should not be independent in any country

I love the Hungarian people,

the same here

the Hungarians got fucked by the left wing rules and it is not fair to blame FIDESZ for troubles in economy, they only try to repair what they've got after socialist government

all this situation is a good example how leftist media "punish" their enemy

Europe didn't come and help Hungarians while they were raped by the Soviets in 1956

I love the Hungarian people,

Hey,.. anyone burning EU flags is OK in my book.

Hungary was the only country in Central Europe which could not draft a new fundamental law since the fall of communism. That was one of examples how the post-communists blocked a lot of reforms.

Orban managed to get new constitution.

Hungary is a third world shit hole that should never have been allowed into the EU until it's economy and civil rights were on a par with the Northern countries of the EU. That is what's wrong with the EU and the Euro zone. They prefer quantity over quality. And now the entire EU is paying the price. They let in countries that are basically 3rd world countries. As it is the poor bloody taxpayers of the Northern EU countries will be subsidising these failed states for decades if not centuries.

mikgof wrote:

Hungary is a third world shit hole that should never have been allowed into the EU until it's economy and civil rights were on a par with the Northern countries of the EU. That is what's wrong with the EU and the Euro zone. They prefer quantity over quality. And now the entire EU is paying the price. They let in countries that are basically 3rd world countries. As it is the poor bloody taxpayers of the Northern EU countries will be subsidising these failed states for decades if not centuries.

I agree that the EU would be in a lot better shape if they hadn't wanted to expand so fast. If they had started with the West block countries, then slowly worked in other countries as they got their economies in order. Barroso and the other dick suckers were hungry for power and expanded too damn fast. Hungary is a ways behind western countries, but it isn't a third world shithole. Some really great people live there and it isn't their fault they are poor after the Communist years.

Hungary is a third world shit hole.. bla bla bla bla bla bla bla bla

you are probably forgiven as you have no idea at all what you are talking about...

Walter Sobchak: Donny you're out of your element! Dude, the Chinaman is not the issue here!

have you been there?

old Europe earned actually MUCH more on accession than it used, and whatever tiny development there is in EU it is thanks to new EU markets

try to read about it, please

bloodhound wrote:

NOZZLE wrote:

Hungarians are filth.

Why? Because they won't bow down and kiss the nonelected EU's ass? I love the Hungarian people, they are a kind, helpful people that love life and want the government to stay the hell out of their lives, like Conservative Americans. I own a house there and my neighbors are wonderful people. Have you even been to Hungary? If not, then why the hard feelings against them?

Jew killers who alligned themselves with the nazis, same as Croat filth. They had a choice, they took it because it was easy and allowed them to work out their own inadequacies on the nearest target.

'Profit was Hungary', shouldn't this be in flames?

NOZZLE wrote:

bloodhound wrote:

NOZZLE wrote:

Hungarians are filth.

Why? Because they won't bow down and kiss the nonelected EU's ass? I love the Hungarian people, they are a kind, helpful people that love life and want the government to stay the hell out of their lives, like Conservative Americans. I own a house there and my neighbors are wonderful people. Have you even been to Hungary? If not, then why the hard feelings against them?

Jew killers who alligned themselves with the nazis, same as Croat filth. They had a choice, they took it because it was easy and allowed them to work out their own inadequacies on the nearest target.

So, the actions of a few are being blamed on the whole population? How do you feel about Germans, is all of Germany at fault because of Hitler?