Ex-ante Policy Impact Assessment in Hungary

  Legal background                                                  Related activities
  Institutional background                                       Existing guidelines
  Relevant areas of Impact Assessment                 Documents and links 

 

Legal background

 
Impact Assessment has been regulated in Hungary since 1987, and since then has been harmonized with European Union requirements. The Law on Law Making explicitly regulates the compulsory ex-ante and ex-post impact assessment of any regulations in the country. Regarding ex-ante impact assessment, it states, that - based on scientific findings – prior to approval of any draft regulation, there must be examination of the social and economic circumstances to be regulated; the validity of rights and obligations of the citizens; the possibilities of solving conflicts of interests; and the possible expected impacts of the regulation, together with the conditions of execution. The law maker has to be informed about the results and conclusions of such examinations and analysis.
 
The value of ex-post regulation is also recognized. The law maker, and the institutions and public organs implying the laws have to monitor the effects of the implementation; to reveal any circumstances preventing the application of ex-post IA; and utilize the experiences and the lessons learned in future law making.
 
The regulatory reform programme of 1995 made further steps to improve RIA. Government Resolution 1052/1999 prescribed a comprehensive review of the Act on Legislation, applying RIA to proposed and existing regulation, as well as the preparation of a new RIA guideline by the Ministry of Justice.
 
 

Institutional background

 
In 2002, the Hungarian government established a new department within the Ministry of Justice, to be responsible for improving regulatory quality. In 2003, this ministry initiated a system of Annual Programmes on Law Simplification (based on Government Resolution 1046/2003).
 
The State Reform Committee was set up in 2006. The Regulatory Reform Working Group of regulatory experts from different ministries was also established as the sub-working group of the Committee. The direction of the regulatory reform is to prepare simpler, cost-effective and more transparent regulation assuring competitiveness and accessible, high-quality public services. The main purpose of the Regulatory Reform Working Group is to have a comprehensive quality assurance system integrated in the legislative procedures, which
  • forecasts regulatory effects with RIAs;
  • assures stakeholder opinions are integrated;
  • assures effectiveness of law-making with different monitoring systems;
  • ensures that regulations generate only the necessary level of administrative burdens for the affected;
  • continuously organizes the required resources for the above mentioned procedures.
The group is to intervene in the regulatory system in different areas. First, technical and substantive deregulation programs are to be launched directly intervening into the 'regulatory mass'. Launching programs to cut administrative burdens in both the business and non-business sectors is also a direct 'cure' for the regulatory system.
 
All governmental submissions are scanned systematically in the frame of the 'RIA monitoring system', using the European Commission indicators. The aim is to monitor IA trends in the Hungarian public administration and give recommendations to the ministries.
 
The Ministry of Justice Department of Impact Analysis, Deregulation and Registration of Law has developed a methodology with the following goals:
a) to serve as a comprehensive handbook of general and specific RIA practices and tools, including relevant legal aspects and economic, social, health and environmental impact assessment methods; and,
b) to provide practical guidance on designing an effective RIA project, including providing charts, graphs and figures that serve as a real support.
 

Relevant areas of Impact Assessment

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Related activities

 
Impact assessment methods are being introduced; several postgraduate courses on law-making incorporate the new concepts and methodology, and a recent proposal for the new Act on legislation puts more emphasis on detailed requirements
 
The 'Standard Cost Model' (SCM) has been applied with regard to administrative burden reduction projects since Autumn 2005. The VAT-benchmark was completed in December 2005. All drafts are to be analyzed from a deregulation and administrative burden viewpoint in the department from 1st December 2006.
 

Existing guidelines

In 2006, the Note of the Ministry of Justice of  8001/2006 on the Methodology of Conducting RIA was published providing practical information for civil servants on how to manage an impact assessment project. 

Documents and links

 
Guidelines for Regulatory Impact Assessment - A szabályozás hatásvizsgálata - módszertani mutató http://www.im.hu/download/hatvizsgutmutato.pdf/hatvizsgutmutato.pdf
 
State Reform Committee http://www.allamreform.hu