EU checking whether to challenge Hungary bank law

BRUSSELS (AP) — The European Union is checking whether to challenge a disputed law in Hungary that some fear threatens the independence of the country's central bank.

The EU Commission said Tuesday its president Jose Manuel Barroso and Hungarian Prime Minister Viktor Orban had "exchanged many letters" over the Christmas holidays, with Barroso insisting the independence of Hungary's central bank must be safeguarded.

The EU Commission is now combing through the law, which was adopted Friday, before making a decision whether it is compatible with EU law. The law increases political influence over the central bank.

Last month, the IMF and the EU withdrew from preliminary talks for financial support for Hungary because of Orban's insistence on enacting the law.