Brussels blog

Day one of the European Union summit finally broke up after midnight Friday, with leaders finalising the structure of a new eurozone bail-out system that will go into place in 2013 and some tough language on Libya, including the promise to push for more sanctions against Libyan oil and gas companies.

Most everything else in the much-anticipated “grand bargain” to shore up the eurozone was decided before the summit, so the rest of the conclusions on economic and fiscal issues were widely reported and expected.

One thing worth reflecting on, however, is the fact that what was once one of the most contentious proposals to reform the EU’s economic governance – new budget rules that allow the EU to fine wayward member states – was agreed to without much controversy. That may require Brussels elites to reconsider the Hungarian presidency.

As readers of the Brussels Blog no doubt remember, Hungary’s six-month period at the helm of the rotating presidency started off rather inauspiciously, with prime minister Viktor Orban pushing a controversial media law through his parliament that critics said was an attempt by his Fidesz party to stifle press critics.

Then there was the brouhaha over the Hungarian carpet that Brussels Blog became a bit obsessed with for a couple months.

But without much notice, the Hungarians have made quite a bit of progress on some of the thorniest EU issues on their agenda, including the new budget rules. When I spoke to Orban about it on Thursday, he was in a buoyant mood.

“We are Hungarians, therefore we enjoy the rocky start,” Orban laughed. “Something that is too easy has no value.”

It is certainly the case that since the Lisbon Treaty went into effect a little more than a year ago, the role of the rotating presidency has been seriously curtailed, with many of its traditional responsibilities passed to Herman Van Rompuy, the permanent European Council president.

But handling negotiations over tough legislative issues – like the budget package, which includes six separate pieces of legislation – is still one of the areas where the presidency can make or break things, since it is responsible for negotiations between member states and the various EU institutions that must approve such laws.

To be sure, the budget rules are not all the way home. The European Parliament, which has been sending out signals that it wants to toughen them even more, could prove problematic in the months ahead.

But as the Hungarian presidency reaches its mid-way point, it’s worth considering that they may be proving more quietly competent than many may had expected.