In order to separate the judiciary from the executive, the administration of the courts was transmitted from the Minister of Justice to the newly established National Council of Justice. The establishment of the National Council of Justice brought about the independence of the judiciary and put an end to the control of the government. The external administration and control that had been exercised by the Minister of Justice in the previous system was transformed into an internal administration.

The administrative autonomy of the Supreme Court ceased to exist and it was integrated into the judicial organisation.

The judicial system which until then had consisted of three levels was complemented by a fourth level: that of the appeals courts. With the establishment of the five regional appellate courts several objectives were realised. It reduced the overwhelming workload of the local courts, it extended the possibility of legal remedy and simultaneously, by reducing the number of cases which the Supreme Court was required to hear, it made it possible for the Court to concentrate on its primary task of providing theoretical guidance to lower courts. See Act LXVI of 1997 on the Organisation and Administration of the Courts.

Compared to previous regulations, Act LXVII of 1997 on the Legal Status and Remuneration of Judges prescribes stricter requirements that have to be met in order to become a judge. The rights and duties of judges are defined exhaustively in this act and it also establishes a new principle on which to base the remuneration of judges. The aim of the law is to improve the composition of the judiciary and to increase the prestige of judicial career.

Act LXVIII of 1997 regulated the service relation and remuneration of judicial employees since they are an important factor of the efficiency of the courts.

The new rules of civil and criminal procedures are closely related to the new four-level court system. Cases whose adjudication is particularly difficult because of the facts or laws involved are moved from local to county courts. While observing the principles of fair trial, the new rules enable the courts to conduct proceedings in a quicker and easier way.

An episode of wrangling with the courts of appeal
The Constitution and the acts of 1997 provided the establishment of the regional courts of appeal. Pursuant to Act LXIX of 1997 three courts of appeal should have been set up in Budapest, Pécs and Szeged by 1 January 1999 and by 1 January 2003 the latest two more should have been instituted in Debrecen and Győr. However, following the 1998 national elections and the talks between the Prime Minister and the leaders of jurisdiction at Hédervár on November 3, the Parliament postponed the setting up of the courts of appeal until December 1998. It repealed the relevant act of 1997 and laid stress on strengthening the position of the lower forums of jurisdiction instead. Act CX of 1999 on the Location and Jurisdiction of the National Court of Appeal provided for a single court of appeal in Budapest acting with national competence. However, Decision 49/2001 (XI.22.) AB of the Constitutional Court established that the Parliament created an unconstitutional situation by failing to regulate the establishment of several courts of appeal notwithstanding the explicit authorisation therefor conferred by the Constitution. The Court called upon the Parliament to perform its obligation to regulate according to the Constitution and the amendment was to be passed by the end of 2002. On 9 July 2002 following the national elections, the Parliament passed the government's proposal on the setting up of five courts of appeal.
The appellate courts in Budapest, Pécs, and Szeged have been working actively since 1 July 2003, the ones in Debrecen and Győr since 1 January 2005. At the five courts of appeal there are altogether 153 judges. With the exception of Budapest, the new courts have got suitable buildings or they are under construction. In Budapest the idea arose that the Supreme Court should move to the former building of the Hungarian Curia opposite the Parliament, leaving its present seat to the Budapest Court of Appeal.

The presidency of the Supreme Court
From 1990 on dr. SOLT Pál - who had been a supreme court judge and a constitutional judge - was President of the Supreme Court for two periods. He passed on the torch to dr. LOMNICI Zoltán, elected president on 25 June 2002. The former Secretary-General, later Vice-President and head of a chamber dealing with cases of administrative law expects to continue and accomplish the reform process. Besides strengthening the position of the National Council of Justice and increasing the efficiency and transparency of its activities, the most important element of this process is the setting up and ensuring the functioning of the courts of appeal by which the Supreme Court loses its appellate functions.
The present President, the department leaders, the deputy head of the Civil Department and the Secretary-General have occupied their posts since 1 February 2002. During their term, on 1 May 2004 Hungary became a member of the European Union. Their major task is, therefore, to reconsider the role of the Supreme Court in this new context. In contrast with the national Council of Justice in charge of the administration of the courts, the Supreme Court deals primarily with the administration of justice itself. Control in matters of principle should be enforced in close co-operation with the courts of appeal and the county courts. Should the Supreme Court not fulfil its task of creating a uniform legal practice, the whole of Hungarian jurisdiction would suffer serious disadvantages. By this and by its own activities in jurisdiction, as well as by its participation in the preparation of laws, through its international relations, and the intensive use of the national network of information technology the Supreme Court can contribute to the smooth application of community law in Hungary.