Managing executive decision-making from the Prime Minister’s Office Hungarian experiences by Dr. István Stumpf Századvég Policy Research Institute, Former Head of the Prime Minister’s Office

Topic of Presentation New role of the PMO The third reform of the Civil Service New center-right government

Political background Socialist-liberal coalition replaced by Socialist-liberal coalition replaced by three party center-right coalition three party center-right coalition coalition forming parties: coalition forming parties: Fidesz (Alliance of Young Democrats) MDF (Hungarian Democratic Forum) FkgP (Smallholders’ Party) New recruitment strategy of state secretaries and ministerial bureaucracy

Structure of Prime Minister’s Office Prime Minister Cabinet of the Prime Minister Governmental Communication Unit Head of Prime Minister’s Office Administrative State Secretary „Mirror” Ministries Political State Secretary Strategical Analizing Unit Ministers without portfolio

Improved the efficiency of Public Service I. harmonization of the strong constitutional position of the and the government structure harmonization of the strong constitutional position of the Prime Minister and the government structure strengthening the PMO as a center coordinator of government activity strengthening the PMO as a center coordinator of government activity establishing a portfolio referential system in the PMO to enhance the operational efficiency of the line ministries establishing a portfolio referential system in the PMO to enhance the operational efficiency of the line ministries

Improved the efficiency of Public Service II. sought to revise the functional division sought to revise the functional division to apply preliminary efficiency studies in policy making to apply preliminary efficiency studies in policy making to use modern management methods to improve professionalism to use modern management methods to improve professionalism clear commitment to elevate the prestige of public administration clear commitment to elevate the prestige of public administration

Enhancing the performance of civil service making civil service career attractive to young professionals making civil service career attractive to young professionals introducing performance-based salaries of civil servants introducing performance-based salaries of civil servants establishing adequate training system establishing adequate training system setting up a life-long career model setting up a life-long career model taking measures against corruption taking measures against corruption compulsory property declaration of key- employees compulsory property declaration of key- employees Drawing up a „Code of Ethics” Drawing up a „Code of Ethics”

New Approach to Executive Governance  further centralization of center- government machinery  effective coordination of government policy  preparation of government strategies  securing proactivity of government communication  strengthening the preparatory role of administrative state secretaries

Main features of PMO’s organizational reform 1. Establishment of a cabinet responsible for direct advice to the PM 2. Head of PMO: first in the rank of ministers 3. Forming of Political State Secretariats responsible for strategic planning and management of gov.policy 4. Forming of „mirror structures” (Ministers Desks) to supervise government policy 5. Setting up a Governmental Communication Unit 6. Organizing regular preparatory meeting for coalition fraction leaders in PMO

Key role of Public Administration Unit Civil Service reform prepared by PA Unit Introducing new Senior Civil Service Corps - extending the recruitment basis - creating a network of experienced and well-trained sen.civil servants - providing a 5-year-long job security - new training system - clarifying professional and political criteria of recruitment

Do you think that an overall reform of public service is necessary in Hungary?

Replacements of civil servants every four years from the nation’s point of view ….

Struggle around the Third Civil Service Reform joint responsibility for preparation: Ministry of Interior Prime Minister’s Office Conflict between the two players → securing the status quo or professional reorganization of public service ?

Outcome  new legal framework was passed  two-pier life-long career path system introduced  created permanent and professional executive civil service corps

As a result… A political compromise: Retaining political discretion Retaining political discretionand De-politicization at the same time In order to → strengthen the expertise basis of the administration

After the elections of 2002  Reform slowed down…  Re-politicization under way….  However, new the government not only kept the reorganized system of the PMO but expanded it as well….  Role of center of government will definitely increase after EU accession.

Thank you for your attention !