EU says Hungary may face sanctions on constitution changes.

By bne IntelliNews March 18, 2013
The European Commission may suspend cohesion fund payments to Hungary due to the controversial amendments to its constitution, portfolio.hu reported, citing EU commissioner, Viviane Reding. The commission sees as unacceptable for a member state to change the fundamental law every six months. The Commission will assess the amendments to the constitution in light of their implications with regard to Article 7 of the EU Treaty. Under this article, the voting rights of a member state may be suspended if fundamental rights in the given country are violated. Hungarian lawmakers approved on March 11 a set of changes to the constitution which critics, including the EU and the Council of Europe, say pose a danger to democracy and the rule of law. One of the amendments introduces the possibility of levying a kind of tax, called "contribution" if a decision by the European Court, the Constitutional Court or other judicial bodies would cause extra government expenditure as long as Hungary's state debt exceeds the 50% of GDP threshold which is also contained in the constitution. Other amendments annul all Constitutional Court decisions issued prior to January 1 of this year and limit the Constitutional Courts examination of the constitutional. Among others, changes allow only the public media to carry political ads prior to the general and European parliamentary elections, with equal space given to each party. It stipulates that students with state-subsidised studies will be required to work in Hungary for a certain period of time after they graduate.

Related Articles

Assets of Hungarys investment funds up 3.2% m/m in Feb 2013.

Hungary's investment funds had aggregate assets of HUF 3.657tn (EUR 11.98bn) as of end-February 2013, up by 3.2% m/m, MTI news agency reported citing data from the association of investment funds ... more

Hungary's number of employees down 0.6% y/y in Jan 2013.

The number of employees in Hungary's public and private sectors fell for the tenth straight month in January 2013 declining by 0.6% y/y to 2.574mn, the statistics office informed. The decline ... more

Hungarys MVM clears deal for purchasing E.ONs local units.

The assembly of state-owned Hungarian Electricity Works (MVM) has approved the purchase of the local gas business of German power utility E.ON, Hungary AM reported, citing local daily Magyar ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 296
Dismiss