Are you sure?

Parliament approves state debt limit for new constitution

Parliament on Monday approved an amendment to Hungary's draft constitution that places a 50%-of-GDP limit on state debt. Parliament voted on amendments submitted to the bill on Monday.

Gross state debt calculated according to the Maastricht criteria stood at 80.2% of GDP at the end of 2010, recently published National Bank of Hungary figures revealed, up from 78.4% of GDP at the end of 2009.

MPs also approved an amendment to the draft constitution that restricts the Constitutional Court's power to take decisions on fiscal matters until the state debt limit is met. Parliament restricted the Court's powers on fiscal matters in November 2010.

Under another amendment, the president of the National Bank of Hungary will be appointed by the President of the Republic for six years, and the vice-presidents of the MNB will also be appointed by the President of the Republic.

An approved amendment will make both the Central Bank Act and the Act on the Hungarian Financial Supervisory Authority legislation requiring a two-thirds majority. A new Central Bank Act is expected to be prepared yet this year, the parliamentary group leader of governing Fidesz said on Monday.

The final vote on the new constitution is scheduled for April 18.