Széchenyi István University of Győr, Faculty of Law, Department for Constitutional Law and Political Science

Problem-setting The effects of the world financial crisis on Hungary’s economy Political background Constitutional effects I – the economic and financial provisions of the new Basic Law Constitutional effects II constitutional implications of the economic policy Conclusions

Year% , , , , , , , ,3 Government deficit in proportion of GDP (%)

 Legitimacy crisis since 2006  Landslide victory of rightist parties in 2010  Restructuring of the party system

No new constitution after the systemic change Rapid and intransparent procedure Legitimacy problems

New economic and taxation principles Debt ceiling rules Restricting judicial control over public finance

Curbing the freedom of action of the next governments The restriction of the budgetary power of the Parliament Conservative economic philosophy

Property rights The nationalization of private pension fund savings Rule of law The retroactive taxation of severance payments

Non-Discrimination Imposing ‘crisis taxes’ on certain economic sectors Freedom of contracts Setting fixed exchange rates for private loans