state Institutions of economic governance

1. State Insitutitons of Economic
Governance
Economic Constitutionalism
Prof. Dr. Mária Bordás
Professor
National University of Public Service
Faculty of Public Governance and International
Relations
2020.

2. Role of Economic Constitutionalism
Constitution:
 Legal norm – basic act
 Acts and decrees – constitutional problem
 Supervision of the Constitutional Court: right to annul
 Interpretation of the Constitutional Court: general
provisions

3. Function of Economic
Consitutionalism
Regulation of government
acitivities: stabilty, accountability
Generally accepted requirements:
public goals - intervention
Limitation for government
activities:guarantees

4. Economic Constitutional
Regulations
Aims:
 Protection of the economic order: right to property,
contract, entrepreneurial activity, economic equality,
market competition
 Provident, servicing state: social rights
 Economic security and welfare: requirements for
the economic policy: security, welfare, good influence
on economic processes

5. Levels
 Provisions for the government decisions
 Constitutional rights can not be violated

6. Economic rights
Common features:
 declare economic freedom
 protect the business firms
 civil law legal relations

7. Economic rights II.
Limitations: not absolute protection: can be
limited in necessary and proportional measure
 Right to entrepreneurial activity: state
monopolies – private monopolies
 Right to contract: price regulation, abuse with
monoply position, customer contracts
 Economic equality: state subsidy, tax
allowance
 Right to property: expropriation -
compensation

8. Social Rights
Features:
 Second generation rights:
State activity is required
Aim: welfare, social security, employment

9. Social Rights
 Not a legal issue:
Minimum for the life, wide welfare institutions,
concrete: house, health, education, aids
 Different solutions: USA, Europe
 Redistribution: limits the right to property

10. Principles of Economic Policy
Expectations:
State aims: social market economy, freedom of
economic competition, scientific and technical
development, environment protection
Economic policy:
 Economic growth
 Economic planning
 Economic security

11. Principles of Economic Policy II
Fiscal policy: stable, financable, complete,
transparent, efficient, guarantees for procedural
rules
Monetary policy: price stability, adequacy,
independency of the central bank
State property: alienate prohibition, decision of
the parliament

12. Interpretation of the Constitutional Court
Relevance:
 Constitutional legal norms are brief
 Continuous interpretation
 Problem: economic, not legal content
 Points of view:
- Public goal, when constitutional rights are
violated
- Social security is served by the economic
policy
- Generally accpeted principles

13. Hungarian Economic
Constitution
Hungarian constitution (1949):
Declaration: market economy, right to
entrepreneurial activity, freedom of
economic competition

14. Interpretation of the
Constitutional Court
 Wide opportunity
 Can not supervise government
decisions
 Constitutional problem: total elimination
of market institutions
 State intervention can not be interpreted
 Social rights: contradictory

15. Econimic Constitutionalism
(recent)
Basic Act
Drastic limitation of the competence of the Constitutional
Court:
Aim: not to hinder the Government in implementing its economic
policy

16. Economic Constitutionalism
(recent)
Basic Act
Means: regulation in the Constitution, if
problematic
Complain, action/petition – not by anybody (actio
popularis)
 No decision in financial matters
 Repealed former resolutions
 Appointment of the president by the Parliament
 Appointment of the members based on loyalty

17. Thanks for your attention!
Question?