REJOINDER: Hungary's prime minister dismissed the European Union's opposition to the country's new constitution as political. He said his government would negotiate with the EU if its objections were more "convincing."
CRITICISM: The EU says Hungary's fiscal policies are unsustainable and threatened legal action over a new constitution that is seen as curtailing the independence of judges, the central bank and other institutions.
FUTURE: Hungary's moves have already increased its borrowing costs. The standoff between the government and the EU underscores the difficulties Hungary will have in negotiating sorely needed financial aid from the EU and the International Monetary Fund.
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