18/8/2022

Press Release No: Constitutionality Review 41/22

Press Release concerning the Decision Annulling the Presidential Decrees on the Price Stabilisation Committee and Industrialisation Executive Committee

The Constitutional Court, at its session dated 1 June 2022, found unconstitutional  in so far as concerned the competence ratione materiae and thus annulled the whole text of the Presidential Decree no. 74 on the Price Stabilisation Committee as well as Article 4 § 3 (e) of the Presidential Decree no. 68 on the Industrialisation Executive Committee (files no. E. 2021/85 and E.2020/94). 

Contested Provisions

The contested provisions embody the principles and procedures concerning the establishment of the Price Stabilisation Committee (Committee), its tasks and powers, as well as other related issues such as the secretariat services that the Committee will need in fulfilling its tasks and exercising its powers. The provisions also grant authorisation to the Industrialisation Executive Committee (IEC) with respect to the deeds and actions concerning the changes, which may jeopardise the sustainability of in-country production and national security, in the partnership structures of the companies that are of critical importance for the country.

Ground for the Request for Annulment

It was maintained in brief that the issues embodied in the contested provisions could not be regulated through presidential decrees as these issues were explicitly regulated in law. It was therefore argued that the contested provisions were unconstitutional.

The Court’s Assessment

It is set forth in Article 104 of the Constitution that no presidential decree shall be issued on the matters which are stipulated in the Constitution to be regulated exclusively by law. Therefore, no presidential decree can be issued with respect to the matters that have been explicitly regulated by law.

In consideration of the establishment, duties, powers and organisational structures of the Committee and the IEC, which operate under the central administration, have no legal personality and do not take part in the organisation of the Presidency or any other Ministry, it appears that the Committee and the IEC are administrative units of distinctive nature. Therefore, the determination of the duties and powers of these two agencies that have no public legal personality and are not included in the organisation of the Presidency or any other Ministry is not among the matters, which are specifically stipulated in the Constitution to be regulated through Presidential decrees.

In addition, the principle of legality of the administration laid down in Article 123 of the Constitution entails the regulation of the establishment, as well as the duties and powers, of the administration through law. In this sense, it has been observed that the matters embodied in the contested provisions are among the ones that should have been regulated exclusively by law, thus constituting an unconstitutional regulation.

Consequently, the contested provisions have been found unconstitutional in so far as concerned the competence ratione materiae and therefore annulled.

This press release prepared by the General Secretariat intends to inform the public and has no binding effect.