Chorus of discontent

What has troubled the international community?

Crisis taxes

Introduced soon after the break with the IMF, crisis taxes on banks, retailers and telecommunications companies have provoked complaints from EU countries whose companies are affected, led by Austria, whose banks have invested heavily in Hungary.

Media legislation

Laws bringing public media under tighter government party control and creating scope for swingeing fines for violations of ambiguously worded violations of press ethics drew fire from the German and US governments as well as from the European Commission.

Flat tax

The Commission is opposed to legislation that has given constitutional status to Fidesz's flat personal-income tax. Orbán says he wants the measure to tie his hands and those of “the next ten prime ministers”. The Commission regards it as a risk to fiscal stability.

Central-bank law

A law that would create the possibility of merging the central bank and the financial-services regulator, allowing the government to name a new central bank governor to sideline the independent-minded incumbent, is opposed by the European Central Bank, which under European law has a veto over legislation affecting central banks.

Election law

In the last days of 2011, the government passed an electoral law that replaces the existing proportional system with a primarily majoritarian system. Critics say the law would have handed Fidesz victories in the previous three elections, two of which the party lost. The legislation was sharply criticised by Hillary Clinton, the US secretary of state.