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2016 Global Review of Constitutional Law

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that the ongoing discussion <strong>of</strong> the ordinary<br />

courts and the CC on the legality and the<br />

constitutionality <strong>of</strong> publishing photographs<br />

alike is far from ending. 6<br />

In Decision 8/<strong>2016</strong> (IV. 6.), the CC<br />

declared that funds used by the foundations<br />

established and companies owned by the<br />

National Bank <strong>of</strong> Hungary are public funds;<br />

therefore the information regarding their<br />

expenditure shall be qualified as information<br />

in the public interest. The case was initiated<br />

by the president <strong>of</strong> Hungary (the head <strong>of</strong> the<br />

state) as an ex-ante review <strong>of</strong> the amendment<br />

to the Act on the National Bank <strong>of</strong> Hungary,<br />

which stipulated certain restrictions on<br />

public information. According to the<br />

amendment, data regarding the functioning<br />

<strong>of</strong> the companies owned by the National<br />

Bank were considered part <strong>of</strong> a decisionmaking<br />

process and therefore secret for<br />

30 years while information regarding the<br />

functioning <strong>of</strong> the foundations established<br />

by the National Bank were deemed similarly.<br />

According to the CC, companies owned by<br />

the National Bank are indirectly owned by<br />

the state; therefore the information regarding<br />

their activity is by definition data <strong>of</strong> public<br />

interest. Concerning the foundations<br />

established by the National Bank, taking<br />

into consideration the source <strong>of</strong> their assets<br />

and their activity, the CC declared that their<br />

funds are public funds and are performing<br />

public tasks. The CC finally declared that the<br />

challenged provisions were unconstitutional,<br />

as there was no legitimate aim to limit the<br />

freedom <strong>of</strong> public information. Overall the<br />

decisions on the right to information show<br />

that the CC is <strong>of</strong>ten up to fight against the<br />

restrictive interpretation <strong>of</strong> ordinary courts<br />

or ready to challenge government attempts.<br />

Selectivity in the protection <strong>of</strong> the rule <strong>of</strong> law<br />

Decision 7/<strong>2016</strong> (IV. 6.) examined the<br />

retroactive effect <strong>of</strong> certain provisions <strong>of</strong><br />

the amendment to the Act on the Hungarian<br />

Post Office. The case was initiated by the<br />

president <strong>of</strong> Hungary as an ex-ante review.<br />

The new regulation introduced a limitation<br />

on the publicity <strong>of</strong> data regarding the business<br />

activity <strong>of</strong> the Hungarian Post Office and its<br />

companies in order to protect their business<br />

interests from other competitors present<br />

on the market. The constitutional dilemma<br />

could have been quite similar to the case <strong>of</strong><br />

the amendment to the Act on the National<br />

Bank <strong>of</strong> Hungary: the president here did<br />

not object to the limitation <strong>of</strong> the public<br />

access to these data. The petition claimed<br />

simply that the retroactive introduction <strong>of</strong><br />

the new provisions was unconstitutional.<br />

According to CC case law, a piece <strong>of</strong><br />

legislation with retroactive effect is not<br />

always unconstitutional, but only when it has<br />

a punitive or more burdening effect. The CC<br />

argued in this <strong>2016</strong> case that the examined<br />

provisions have no punitive or burdening<br />

effect. As they are only <strong>of</strong> a clarifying nature<br />

to the conditions for exercising the freedom<br />

<strong>of</strong> information, the retroactive effect <strong>of</strong> the<br />

law was found constitutional.<br />

In Decision 23/<strong>2016</strong> (XII.12.) the CC<br />

examined the constitutionality <strong>of</strong> the Act<br />

on the special reimbursement program open<br />

for capital market investors. Those investors<br />

who lost property due to the bankruptcy <strong>of</strong><br />

big brokerage companies could take part<br />

in the reimbursement program. The loss<br />

was caused by systemic irregularities in<br />

brokerage activities. Due to the fact that the<br />

examined regulation contained limitations<br />

<strong>of</strong> the access to reimbursement in many<br />

aspects, dozens <strong>of</strong> constitutional complaints<br />

were submitted, claiming that the act in<br />

question limited the fundamental rights <strong>of</strong><br />

the complainants (equal treatment, the right<br />

to property, the rule <strong>of</strong> law and the right to<br />

fair trial). The CC declared that the system<br />

<strong>of</strong> reimbursement established by the law is<br />

<strong>of</strong> an ex gratia nature based on equity, which<br />

constitutes no ground for such right-based<br />

claims. In other aspects, the CC found the<br />

regulation reasonable and based on public<br />

interest. The constitutional complaints were<br />

therefore rejected. The <strong>Constitutional</strong> Court<br />

in this decision also rejected the constitutional<br />

complaints <strong>of</strong> financial institutions as the ex<br />

gratia remedy for the loss investors were to<br />

be <strong>of</strong>fered by all financial institutions. The<br />

institutions are to be compensated for this<br />

actual violation <strong>of</strong> their property rights only<br />

in a later stage, according to the Act CXXIV<br />

<strong>of</strong> 2015 on the stability <strong>of</strong> the capital market.<br />

Some financial institutions claimed that the<br />

measures implemented by the act were not<br />

proportionate concerning the limitation <strong>of</strong><br />

their right to property, but the CC declared<br />

the constitutionality <strong>of</strong> the related, highly<br />

problematic provisions as well.<br />

In several constitutional complaint decisions<br />

in <strong>2016</strong>, the CC further declined to overturn<br />

the decisions <strong>of</strong> ordinary courts in cases<br />

concerning foreign currency loan contracts. 7<br />

The economic crisis <strong>of</strong> 2008 and especially<br />

the rapid exchange rate depreciation <strong>of</strong> the<br />

Hungarian forint resulted in a significantly<br />

worsened situation <strong>of</strong> debtors. Legislative<br />

acts aiming to help the situation and<br />

related judicial decisions were reviewed<br />

by the <strong>Constitutional</strong> Court continuously.<br />

Novel constitutional ideas, unconventional<br />

constitutional measures and new doctrinal<br />

solutions were born in foreign currency loanrelated<br />

decisions. In <strong>2016</strong>, in constitutional<br />

complaint procedures, the CC enhanced<br />

its position developed already in 2014 and<br />

2015. In its Decision 34/2014 (XI. 14.),<br />

it examined the unconstitutionality <strong>of</strong> the<br />

legislative act regulating basically two<br />

questions: whether exchange rate margins<br />

in foreign currency loan contracts are null<br />

and void and whether unilateral amendments<br />

to contracts are unfair. 8 According to the<br />

<strong>Constitutional</strong> Court, the rules did not attain<br />

the level <strong>of</strong> unconstitutionality either in the<br />

details or as a whole. The act did have a<br />

restrictive effect on the fundamental rights<br />

in question, but the restriction itself could<br />

not be considered unconstitutional under<br />

a proportionality test. In Decision 2/2015<br />

(II. 2.), the petitioner judges claimed that<br />

the principle <strong>of</strong> separation <strong>of</strong> powers, right<br />

to fair trial, the rule <strong>of</strong> law and the legal<br />

certainty were breached in credit crunch<br />

related legislation. 9 The <strong>Constitutional</strong><br />

6<br />

Éva Balogh, ‘A megkülönböztetés művészete: bírói mérlegelés a közszereplőkkel kapcsolatos közlések szabadsága kapcsán’ (<strong>2016</strong>) Fundamentum 1.<br />

7<br />

Decisions 3103/<strong>2016</strong>. (V. 24.), 3098/<strong>2016</strong>. (V. 24.), 3167/<strong>2016</strong>. (VII. 1.), 3222/<strong>2016</strong>. (XI. 14.), 3272/<strong>2016</strong>. (XII. 20.).<br />

8<br />

Act XXXVIII <strong>of</strong> 2014 on the Resolution <strong>of</strong> Questions Relating to the Uniformity Decision <strong>of</strong> the Curia Regarding Consumer Loan Agreements <strong>of</strong> Financial<br />

Institutions.<br />

9<br />

See also Act XL on the Rules <strong>of</strong> Settlement Provided for in Act XXXVIII <strong>of</strong> 2014 on the Resolution <strong>of</strong> Questions Relating to the Uniformity Decision <strong>of</strong><br />

80 | I•CONnect-Clough Center

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