2011-04-21

On the occasion of ratifying the new constitution, the Hungarian government received a great amount of criticism. The BBJ, being a paper that values the liberty of free thought, agrees with parts of the critique, mainly the ones that challenge the document for disregarding human rights.
But, being also a business paper, the BBJ must admit that certain parts of the constitution, such as the introduction of a debt ceiling, even at the price of reducing the government’s jurisdiction, are not necessarily the work of the devil. Far from it.
The fact that there is a debt ceiling enshrined in the constitution might be an unorthodox measure, but in a country that has suffered from ever-increasing public debt and irresponsible spending, we see it as a good thing, maybe. It could be argued that it should not be 50%, as it is, but it is probably superfluous to do so: there are several “exceptions” to this rule, including periods of economic difficulty. It could also be argued that linking tax legislation to a two-thirds majority vote will make the tax system inflexible. However, another word for inflexible is predictable. It could turn out to be predictably bad, which would be a bad thing, but we are sure that the minor tax laws, which will probably set the rates if not the tax types, will allow the government some room for adaptation to circumstances.
We can only hope that basing so many important regulations on a two-thirds majority will eventually force Hungarian politics to become more consensual. At the moment, it does not seem likely that there will be another government with a two-thirds majority in the near future, which means that with the new constitutional checks on government power could force governing parties to make deals with the opposition. However, the often arrogant way the current government is exercising its power does not form a good precedent for the future.
This is the BBJ's editorial staff's blog about our dilemmas and thoughts about our work and our editorials on current affairs. It is also the place where we will give you information about new features of the website. Please comment and let us know what you think.
Sponsored by:
This blog is edited by the BBJ's editorial staff.
20:10Egis ups guidance
19:45Banking association establishes position on transactions duty for talks with govt
19:25Hungary seeks three-year, €15 bln precautionary financing from IMF/EU
12:25Nabucco consortium executive body to discuss MOL stand on pipeline
12:05Weaker HUF, EUR sales to mortgage repayments give MNB extra HUF 13.6 bln
11:35MOL considers joining BP pipeline project
16:55Hungary CPI picks up to 5.7% in April
16:45EC forecast puts Hungary deficit under 3% threshold in 2012, 2013
EC forecast puts Hungary deficit under 3% threshold in 2012, 2013
A sector waiting to be recognized
Govt breaks promise made in agreement with new tax, Banking Association says
Hungary exports drop, imports down slightly yr/yr in March
Hungary debt insurance costs surge on Greece worries
Govt approves new taxes in Széll Kálmán Plan 2.0
Govt approves new taxes in Széll Kálmán Plan 2.0
Hungarian insurers to pay no bank levy from 2013, ministry confirms
EU conformity of telephone tax questionable, Mattheisen says