The short notice period and the lack of compensation violated the directive on the free flow of capital, the Commission argues.

The Commission sent a letter of formal notice in October 2014 and a reasoned opinion in June 2015 asking Hungary to bring its land law into line with EU regulations. As Hungary made no changes to its laws, the Commission has turned to the Court.

Prime Minister’s Office leader János Lázár told reporters yesterday that the Hungarian law was passed because Austrian farmers wanted to use fictitious contracts and land lease agreements to acquire arable land in Hungary near the Austrian border. The law in question rendered these contacts invalid.

The Court of Justice is addressing a case that was obviously initiated by Austria, concerning some 200 farmers, Lázár added.

He said the government is ready to talk about compensation for the Austrian farmers.

Source: Hungary Around the Clock

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