ANNOUNCEMENT 17 Dec 2012

In December 2012, the government of Hungary announced changed rules for foreign investors.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Source: Ministry of Rural Development Press Office, Dec. 17, 2012: http://www.kormany.hu/en/ministry-of-rural-development/news/parliament-makes-historic-decision
Parliament, Act T/9400/7 amending the Fundamental Law (in Hungarian): http://www.parlament.hu/irom39/09400/09400-0007.pdf
UPI, 'Hungary bans foreign land ownership', Dec. 21, 2012: http://www.upi.com/Business_News/Energy-Resources/2012/12/21/Hungary-bans-foreign-farmland-ownership/UPI-42121356066240/
EU's press release on opening of infringement procedure
http://europa.eu/rapid/press-release_IP-15-4673_en.htm


Inception date: 18 Dec 2012 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On December 17, 2012, the Hungarian Parliament amended the constitution to the effect of banning foreigners from acquiring ownership of agricultural land in the future. Current land owners are not affected. The Ministry of Rural Development hails this decision as 'historic' and providing 'stability, predictability and the opportunity for secure planning for those who live off agriculture' by protecting Hungarian farmland 'from foreign and domestic speculators alike'.
For this measure, no data could be retrieved concerning current foreign land ownership. Therefore, the affected trading partners as those mentioned in this UPI article.
Update:
On 26 March 2015, the European Commission announced it would open an infringement procedure against Hungary on investor restrictions for agricultural land.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A