Fu n d a m e n t a l s s p r i n g s e s s i o n - f o r e c a s t. Hungarian legislation following the change in government

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1 Fu n d a m e n t a l s Legislative features content issues: Strong institutional centralization: preparations for a new constitutional arrangement, Swift personal decisions: securing powerful positions, Fast and impressive implementation of major election promises (e.g., tax cuts). Legislative features formal issues: Legislation at an unprecedented rate, efficient exploitation of the two-thirds majority, Lack of consultations: decision-making by select groups, reliance on motions submitted by individual representatives, Frequent codification and technical errors, leading to legal ambiguity s p r i n g s e s s i o n - f o r e c a s t The government s 2011 spring legislative agenda foreshadows a more moderate pace. Based on the schedule, Parliament will consider two proposals each in March, April and May, and six in June. The government explains the relative dearth of proposals by the heavy workload related to the rotating EU-presidency and the drafting of the new Constitution. Current explanations notwithstanding, one must remember that while last autumn s legislative agenda also promised a modest pace, during the session major pieces of legislation were submitted in the form of individual representative motions, i.e., it is a reasonable assumption that the practice will be repeated. It is also important to note that thanks to the fast-paced and centralized legislative process, conflicts are intensifying within the faction, suggesting that major political considerations also argue for a return to a more manageable legislative schedule. Moreover, it is also noteworthy that specific topics, issues one had assumed would be on the agenda, are not part of the legislative program. The most essential of these concern legislation related to the structural reforms, to be announced in February. Presumably it is not a coincidence that the government plans to announce these reforms at that time as, according to a previous announcement, starting in March Parliament will devote all its energy to the new Constitution. The decision may have been motivated by a desire to divert public attention from structural reforms, involving cost cuts and dashed hopes, to the constitutional process of symbolic importance. One seat in the constitutional court, filled by a Parliamentary vote for a specified term, is currently vacant (following his resignation, László Trócsányi s mandate ended on September 30, 2010) and Parliament is expected to fill the position in the spring. Legislative p r o c e s s in o v e r d r i v e The rapid pace of legislation is well illustrated: in the first parliamentary session in proportion significantly more decisions were made than in previous sessions. In this context it is telling that in the first six months of the current administration the number of parliamentary decisions amounts to 25% of all the decisions passed in the previous four years. 1

2 In many cases serving its short-term political objectives, the government has amended the Constitution nine times. The most important changes (the reduction of the number of MPs to 200 starting in the next term, changing the rules for the appointment of constitutional court judges, elimination of the parliamentary questioning session in respect to the chief prosecutor and limitation of the Constitutional Court s jurisdiction) all serve the purpose of political centralization. In respect to the composition of legislative decisions, the percentage of legislative amendments is higher than in the past, although this is considered normal at the beginning of a term. Governing parties often exercise the right to submit bills by individual representatives to circumvent public administrative consultations. A number of major bills were submitted in this fashion (e.g., in connection to the media law, the bill on special taxes levied on specific sectors, and laws affecting private pension funds). In the spring session 18% of all legislative proposals were submitted to Parliament by the government and 82% by individual representatives. In the autumn session that rate came to 67% and 33%, respectively (at that time of the year a significantly higher number of international treaties come before Parliament). Looking at the two parliamentary sessions, 51% of all bills were submitted by individual MPs and 49% by the government. While in the spring there were five, in the autumn 21 bills (22 votes) approved unanimously by the five parliamentary factions. However, over 50% of the above 21 bills involved regulations related to international treaties. The most important bills passed by all factions include the introduction of the simplified naturalization of ethnic Hungarians living abroad and salary cuts for top public officials. 2

3 Major laws and legislative amendments Definition Constitutional amendments The law and its brief description Maximizing the number of MPs in 200, introduction of the institution of deputy prime minister Codification the position of deputy-mayor in the Constitution Amendment of procedures for the election of constitutional court judges: adjustment of the composition of the nominating committee corresponding to parliamentary seats Constitutional amendment related to the media package: the constitutionally granted freedom of opinion has been supplemented with the freedom of speech Court clerks may adjudicate minor offences in the first instance and order incarceration lex Borkai amendment to make a single exemption: former members of the armed forces may not be appointed to a public office for three years Elimination of the parliamentary questioning session in respect to be chief prosecutor Limiting the Constitutional Court s jurisdiction (the court s jurisdiction is limited to specific basic rights, not including private property rights) Codification of decree rights for the president of the Media Authority (NMHH) in the Constitution Act on the legal status of government Making it easier to dismiss government employees employees without explanation Amendment of Act IV/1978 on the Penal Tightening rules for criminal offences (e.g., Code enactment of three-strike legislation) Other Constitutionbased laws Laws concerning economic and financial issues Act on the election of local-government representatives and mayors Amendment of Act C/1997 on election procedures Act on basic rules regulating press freedom and media content (media constitution) On media services and mass communication (media law) Act on legislation Amendment of Act VII/1989 on the right to strike Amendment of Act CXXVII/2007 on the value-added tax Laws concerning special taxes imposed on specific sectors Amendment of the Act on taxes, contributions, laws on accounting and the chamber of auditors. Act on the freedom of option in respect to pension funds On the 2011 budget of the Republic of Hungary The number of representatives in local councils, in Budapest and County assemblies will be reduced in several places Shorter campaign season, campaign moratorium and reduced time for the collection of recommendation slips An act paving the way for new media regulations An overhaul of the printed, electronic and online media A rewriting of the act on legislation in effect since 1987 Limiting the right to strike Elimination of VAT obligation on public donations Imposition of special taxes on three business activities (retail sales, telecommunications and energy services) Streamlining taxation and introduction of the flat income tax Strong incentives for a return to the staterun pension system; the virtual elimination of the second pillar of the pension system Government budget for the current year 3

4 Public officeholders elected since the inauguration of the Orbán-cabinet Person Position Term of office Pál Schmitt President of the Republic of Hungary 5 years (until 2015) Mihály Bihari Member of the Constitutional Court 3 years (he turns 70 in 2013, the legal age limit for Constitutional Court judges) István Stumpf Member of the Constitutional Court 9 years (until 2019) Péter Polt Prosecutor General 9 years (until 2019) László Domokos President of the State Audit Office 12 years (until 2022) Tihamér Warvasovszky Vice President of the State Audit Office 10 years (until 2020) Annamária Szalai President of the Media Council, National Media and Infocommunications Authority János Auer 9 years (until 2019) Member of the Media Council, National Tamás Kollarik Media and Infocommunications András Koltay Authority Ágnes Vass László Balogh President of the Board of Trustees, Public Service Foundation Izabella Bencze Gábor Ilosvai László Kránitz Miklós László Vladimir Németh Máté Tibor Silhavy Szilvia Varga Vilmos Bordás Éva Bozsóki Ákos Hunyadfalvi Zoltán Pozsár-Szentmiklósy Róbert Sasvári László Székely Zsigmond Járai Tamás Katona László Madarász Péter Róna Gábor András Szényei IstvánVarga Member of the Board of Trustees, Public Service Foundation Chairman of the National Election Committee (OVB) Member of the National Election Committee (OVB) Substitute member of the National Election Committee (OVB) Chairman of the Supervisory Board, National Bank of Hungary (MNB) Member of the Supervisory Board, National Bank of Hungary (MNB) 9 years (until 2019) Until the opening meeting of the National Election Committee ahead of the next general elections Until the current Parliament s term expires Performance of the Parliamentary opposition Of the opposition parties Jobbik supported the highest number of legislative bills submitted by the governing parties (60% in the spring and 55% in the autumn session). In respect to the nine constitutional amendments during the period under review, on one occasion (involving the elimination of the parliamentary questioning session in respect to the chief prosecutor) the Jobbik faction voted with the governing parties. In the case of MSZP and LMP, in the autumn session there has been a slight increase in the rate of cooperation (MSZP from 18 to 25%, LMP from 35 to 36%) although this is slightly misleading as in the autumn session there were significantly more bills involving the ratification of international treaties. 4

5 During the two parliamentary sessions there were a total of 112 decisions supported by at least one opposition faction, and of these 27 were supported by all three. Number of government decisions supported by opposition parties Factions activity and discipline The government factions (Fidesz, KDNP) are extremely active and disciplined. Dissent is more common in the MSZP and LMP factions, although even here voting against the faction is rare. 5

6 In respect to faction-discipline the governing parties, primarily KDNP, were the most effective, although in the autumn their record slipped slightly compared to the spring session. The MSZP and LMP factions remain the most divided. LMP MSZP Jobbik KDNP Fidesz The % of votes going against faction majority Total votes Votes against faction majority spring 1.86% autumn 1.41% spring 1.16% autumn 0.75% spring 0.74% autumn 0.29% spring 0.04% autumn 0.05% spring 0.04% autumn 0.13% Public confidence in Parliament Since the general election public support for the government shows but a slight decline. Going beyond party preferences, initial confidence is also expressed in increased trust in specific institutions. As a result, by the summer of 2010 support for the legislative assembly improved over the previous years. Even so, less than 50% of the respondents have confidence in Parliament. 6