2016 Global Review of Constitutional Law
I-CONnect–Clough Center collaboration.
I-CONnect–Clough Center collaboration.
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
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