Hungary Passes Security Law On Foreign Investments

  • 3 Oct 2018 7:06 AM
  • Hungary Matters
Hungary Passes Security Law On Foreign Investments
Lawmakers passed a law requiring individuals and legal entities from outside the European Union, the European Economic Area and Switzerland to disclose to the authorities certain acquisitions in Hungary that may threaten the country’s security interests.

Under the law, the entities in question must seek ministerial approval if they intend to carry out investments and become major shareholders in certain companies registered in Hungary. It covers the areas of national security, public security and those affecting economic and public health interests.

Permission will be needed for the production of arms and certain military technology, equipment used by the intelligence services, the operation of certain financial services and payment systems, and activities covered by the laws relevant to energy, utilities and electronic communications. The minister will have 60 days to examine whether any such acquisition harms the security interests of Hungary.

A fine of up to 10 million forints (EUR 31,000) may be imposed on any entity that fails to provide all the information requested, and in some cases the Hungarian state can exercise preemption rights.

Originally the law was set to come into force on October 1 but parliament’s legislative committee postponed the date to January 1, 2019 to allow for “appropriate preparation”. The motion was passed with 113 votes in favour, 50 against and 3 abstentions.
 

MTI Photo: Illyés Tibor

Related links

Law For Foreign Investments With Security Risks In Hungary To Come Into Effect In 2019

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this newsletter published on week days covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI.

Explore More Reports

  • 'Proof of Friendship': Avenue Named After Budapest in Bangkok

    'Proof of Friendship': Avenue Named After Budapest in Bangkok

    • 20 Mar 2024 6:34 AM

    The naming of an avenue after Budapest in Bangkok and the inauguration of the statue of Hungarian 19th century ethnologist János Xantus are proof of the long-standing friendship based on mutual respect between the two countries, the foreign minister said.

  • Official Says Orbán & Trump Have Same Values, Interests

    Official Says Orbán & Trump Have Same Values, Interests

    • 12 Mar 2024 7:01 AM

    Adhering to the same conservative values could further strengthen cooperation between the Hungarian prime minister and Donald Trump, Zoltán Kovács, state secretary for international communication and relations, said after Viktor Orbán’s meeting with the former US president and Republican presidential candidate, in Florida on the weekend.

  • Hungary-Serbia Relations 'At Historic Best'

    Hungary-Serbia Relations 'At Historic Best'

    • 7 Mar 2024 6:15 AM

    Hungary-Serbia relations are at their historic best, as ethnic Hungarian communities beyond the borders represent a resource in cooperation with neighbouring countries, the foreign minister said.