HUN-1994-1-007
a) Hungary / b) Constitutional Court / c)   / d) 16-04-1994 / e) 21/1994 / f)   / g) Magyar Közlöny (Official Gazette), 40/1994 / h) .
 
Keywords of the Systematic Thesaurus:
 
 
Constitutional Justice - Jurisdiction - Types of litigation - Powers of local authorities.
General Principles - Market economy.
Institutions - Federalism, regionalism and local self-government - Distribution of powers - Principles and methods.
Fundamental Rights - Economic, social and cultural rights - Freedom to choose one's profession.
Fundamental Rights - Economic, social and cultural rights - Commercial and industrial freedom.
 
Keywords of the alphabetical index:
 
Competition, freedom.
 
Summary:
 
A provision of the Act on Public Road Traffic enables local governments to limit the number of taxi-cabs. This numerus clausus of taxi-cab licences was challenged as unconstitutional. The consistent interpretation of the Constitutional Court is that the establishment of a market economy is a goal set by the Constitution. A free market can only be limited by State intervention for the sake of the protection of fundamental rights. On the other hand, the limitation of market freedoms may be unconstitutional if it violates fundamental rights. The right of free enterprise is a fundamental right under the Hungarian Constitution. The regulation enabling the limitation of the number of taxi-cabs is unconstitutional because it constitutes an unnecessary and disproportionate limitation of the right to choose one's profession. State intervention aiming at regulating competition and elevating the quality of services does not constitute a constitutionally proper limitation of the right of free enterprise. Local governments may not limit fundamental rights in order to simplify their administrative tasks. Furthermore, the unconditional power of local governments to regulate the number of taxi-cabs is unconstitutional because substantial limitations of fundamental rights may only be authorised by parliamentary statute.
 
In the same decision, the Constitutional Court approved the constitutionality of provisions regulating the conditions necessary to attain a cab license.
 
Supplementary information:
 
One judge, joined by another, wrote a concurring opinion.
 
Languages:
 
Hungarian.