Transcript 1. The effects of the world financial crisis on Hungary’s

Széchenyi István University of
Győr,
Faculty of Law,
Department for Constitutional Law
and Political Science
 Problem-setting
 The effects of the world financial crisis on
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Hungary’s economy
Political background
Constitutional effects I – the economic and
financial provisions of the new Basic Law
Constitutional effects II constitutional
implications of the economic policy
Conclusions
Annual changes of GDP
6
4
2
0
-2
-4
-6
-8
2004
2005
2006
2007
2008
2009
2010
2011
GDP
Year
%
2004
-6,5
-7,9
-9,3
-5,1
-3,7
-4,6
-4,2
2005
2006
2007
2008
2009
2010
2011
-4,3
Government deficit in proportion of
GDP (%)
Legitimacy crisis since 2006
Landslide victory of rightist
parties in 2010
Restructuring of the party
system
 No new constitution after the
systemic change
 Rapid and intransparent procedure
 Legitimacy problems
New economic and
taxation principles
Debt ceiling rules
Restricting judicial control
over public finance
Curbing the freedom of
action of the next
governments
The restriction of the
budgetary power of the
Parliament
Conservative economic
philosophy
The nationalization of private
pension fund savings
• Property rights
The retroactive taxation of
severance payments
• Rule of law
Imposing ‘crisis taxes’ on
certain economic sectors
• Non-Discrimination
Setting fixed exchange rates
for private loans
• Freedom of contracts