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The Swinging Pendulum of Decentralization in Hungary

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The Palgrave Handbook of Decentralisation in Europe

Abstract

Hungary used to have a very strong centralized administrative system after World War II. Then the transition of political and economic system made possible the creation of a new constitutional base for its administrative system including local self-governments. In 1990, a new and separate chapter on local self-government was integrated into the Constitution due to its amendment and the Parliament adopted a new legislative act on local self-governments. Decentralization resulted in a wide autonomy for local self-governments concerning their competences, management, internal structure and finances.

The constitutional background and the legislative act adopted with a qualified majority ensured the stability of the system but at the same time, this stability became the obstacle of further corrections and reforms later when they seemed to be necessary. However the system of decentralization produced to be successful if democracy is considered, but it has not been effective from the beginning. Desire for autonomy proved to be stronger than a need for effective cooperation among communes and common service provision. The lack of expertise and experiences of democratically elected officials as well as un-efficient rules of responsibility caused difficulties. Also a weak coordination and control from the state’s part drove to some serious problems that threatened the service provision and even the daily operation of municipalities.

The way to rethink the system of decentralization was opened up in 2011 when a new Constitution called the Fundamental Law of Hungary was adopted such as a new legislative act on local self-governments. Influence of the central Government became stronger, and new local as well as territorial representatives of the state have appeared. All of this can be evaluated as a kind of recentralization.

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Notes

  1. 1.

    In Hungary, the feudal monarchy came to its end in 1848 due to the revolution of March and its political consequence, the Legislative Acts passed in April. In a feudal monarchy, decentralization and centralization could not be understood; however, central and local powers were in permanent conflict during centuries. The first appearance of these modern categories can be seen in the debate on establishing a new administrative structure of the State with particular concern to the relation between central Government and municipalities. Supporters of strong centralized Government called centrist opposed those who preferred strong local self-governments called municipalists. The debate could not terminate due to the lost war for liberty of 1848–49 against the Habsburg Empire allied with Russia. In 1849, as a consequence of the lost war, Habsburgs regarded Hungary as occupied territory where Austrian legal and administrative institutions were established. The Habsburg absolutism that abolished the Hungarian Constitution ended with the so-called Compromise in 1867. The Compromise established the union of Austria and the Kingdom of Hungary known as Austro-Hungarian Monarchy meaning that Hungary gained back its statehood, legal system and its own national public administration.

  2. 2.

    Some features of this limited autonomy were that the head of the county self-government was not elected but appointed by the central Government. Either counties or municipalities were not authorized to levy taxes. Elected officials of the county self-government were financed by the central Government.

  3. 3.

    Chapter IX of the Act of the Parliament No. XX of 1949 on the Constitution of the Republic of Hungary.

  4. 4.

    Act of the Parliament No LXV of 1990 on Local Self-Governments.

  5. 5.

    In this study, the expression commune is used. The commune is the basic unit of local self-government and its lower level at the same time. (Its other level is the county.) The commune has various forms (status), namely village, city, city of county status, the Capital, the district of the Capital. This short explanation is necessary because in the official English versions of the Constitution and of the Act on Local Self-Governments—as well as of the Fundamental Law and the new Act on Local Self-Governments—translated from Hungarian into English, the expression “settlement” has been used as a general denomination of all the types of communes.

  6. 6.

    Section 42 of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary.

  7. 7.

    Section 42 of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary.

  8. 8.

    Section 43 (1) of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary.

  9. 9.

    Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary is a so-called Cardinal Act. Section T (4) of the Fundamental Law states that Cardinal Acts shall be Acts of Parliament, the adoption and amendment of which requires a two-thirds majority of the votes of Members of Parliament present. In 1990, the Constitution did not used the expression “cardinal Act” but knew the requirements of two-third majority in given subjects and the previous local government act was adopted be a two-third majority as well in 1990.

  10. 10.

    Chapter XII of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary under the title “Fundamental Rights and Duties”, when these rights were the human rights and the rights of the citizens.

  11. 11.

    Courrier (Est Europa, 2011:467), Temesi (Pro Publico Bono, 2011:98–99).

  12. 12.

    Section 42 of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary.

  13. 13.

    Section 1 (1) and (2) of the Act of the Parliament No LXV of 1990 on Local Self-Governments.

  14. 14.

    Section 31 (1) of the Fundamental Law of Hungary (Constitution).

  15. 15.

    Section 4 of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  16. 16.

    Section 41 of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary and Section F of the Fundamental Law of Hungary (Constitution).

  17. 17.

    Section 1 (1) of the Act of the Parliament No LXV of 1990 on Local Self-Governments.

  18. 18.

    Section 3 (2) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  19. 19.

    Chapter VI of the Act of the Parliament No LXV of 1990 on Local Self-Governments.

  20. 20.

    Section 21 (2) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  21. 21.

    Section 3 (3) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  22. 22.

    See explanation in footnote 5.

  23. 23.

    Section 27 (1) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary. Further regulation enumerating the tasks of county self-government is mainly the Act of Parliament No XX of 1996 on territorial development and land-use planning.

  24. 24.

    Section 13 (1) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary: by virtue of common local affairs and locally deliverable public services, a local government is responsible in particular for:

    1. 1.

      urban development, land-use planning

    2. 2.

      urban operations (developing and maintaining public cemeteries, providing public lighting, providing industrial chimney sweeping services, developing and maintaining local public roads and road accessories, developing and maintaining public parks and other public area, providing space for parking vehicles);

    3. 3.

      naming public area and public institutions in self-government ownership;

    4. 4.

      primary health care, services promoting healthy ways of living;

    5. 5.

      environmental health (refuse collection, sanitation of urban environment, control of pests and rodents);

    6. 6.

      kindergarten service;

    7. 7.

      cultural services, particularly providing public library services, supporting cinemas, performing art organizations, protection of local cultural heritage; supporting local community culture;

    8. 8.

      social, child welfare and child protection services;

    9. 9.

      housing and property management;

    10. 10.

      providing for and rehabilitating people becoming homeless in its territory and preventing homelessness;

    11. 11.

      protection of the local environment and nature, water management, preventing floods, supply of drinking water, canalization, treatment and disposal of waste water (sewage service);

    12. 12.

      national defence, civil defence, disaster protection and local public employment;

    13. 13.

      responsibilities relating to local taxes, organizing the economy and tourism;

    14. 14.

      providing sales opportunities for small-scale producers and licensed traditional producers (to sell products specified in legislation), including weekend markets;

    15. 15.

      sport and youth related affairs;

    16. 16.

      nationality affairs;

    17. 17.

      participation in ensuring public safety of their settlement;

    18. 18.

      providing local community transport;

    19. 19.

      waste management;

    20. 20.

      district heat supply.

  25. 25.

    Act of Parliament No XCX of 2011 on National Public Education.

  26. 26.

    Section 34 (2) of the Fundamental Law of Hungary (Constitution).

  27. 27.

    Act of Parliament No XXIII of 1992 on Status of Civil Servants.

  28. 28.

    Statuses of public employees are regulated by Act of Parliament No XXXIII of 1992.

  29. 29.

    Act of Parliament No LVIII of 2010 on the Status of Cabinet Civil Servants.

  30. 30.

    Act of Parliament No CXCIX of 2011 on Status of Civil Servants of the State.

  31. 31.

    Working time in civil service is 40 hours a week, from 8.00 a.m. to 4.30 p.m. except for Fridays, when it ends at 2.00 p.m. In customer service, working schedule can be 8.00 a.m. to 8.00. p.m. and not only in local administration.

  32. 32.

    General Government counsellor and Government counsellor in the administration of the State.

  33. 33.

    The amount of salary supplement of Cabinet civil servants is fixed by the Act itself while at municipalities the amount of this element of the salary is specified by the body of representatives.

  34. 34.

    See data of the Hungarian Office of Statistics. Period June to July 2015.

    http://www.ksh.hu/docs/hun/xstadat/xstadat_evkozi/e_qli006.html. Downloaded 05.11.2015.

  35. 35.

    See data of the Hungarian Office of Statistics. Period August 2015.

    http://www.ksh.hu/docs/hun/xstadat/xstadat_evkozi/e_qli001d.html. Downloaded 05.11.2015.

  36. 36.

    Section 44/A (1) b)–d) of the Act of the Parliament No XX of 1949 on the Constitution of the Republic of Hungary.

  37. 37.

    Section 111 (4) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  38. 38.

    Section 10 (2) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  39. 39.

    Section 106 (1) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  40. 40.

    Sections 117–118 of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  41. 41.

    Section 111/A of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  42. 42.

    Section 132 (1) f) of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  43. 43.

    Section 38 (1) of the Fundamental Law of Hungary (Constitution).

  44. 44.

    Section 107 of the Act of Parliament No CLXXXIX of 2011 on Local Governments in Hungary.

  45. 45.

    Data of OECD. Subnational Governments in OECD Countries: Key Data. 2015. Edition. OECD. pp. 16 and 17.

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Temesi, I. (2017). The Swinging Pendulum of Decentralization in Hungary. In: Ruano, J., Profiroiu, M. (eds) The Palgrave Handbook of Decentralisation in Europe. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-32437-1_16

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