The EC said the regime subjects foreign-owned retailers to "high and steeply progressive" tax rates on turnover, while favouring locally-owned chains that operate as franchises, violating EU rules on the freedom of establishment.

The EC launched the infringement procedure against Hungary regarding the retail tax regime in October 2024. It took the procedure to the penultimate level in June 2025, sending authorities a "reasoned opinion".

Infringement procedure launched against Hungary over fuel price caps

The European Commission on Wednesday launched an infringement procedure against Hungary over discriminatory fuel prices for cars registered outside of the country.

Early in March, Hungary's government introduced caps on motor fuel prices for vehicles registered in Hungary to mitigate the impact on markets of the conflict in the Middle East and the shutdown of the Druzhba pipeline, through which Hungary gets its Russian crude.

In the announcement of its decision to send Hungary a letter of formal notice, marking the start of an infringement procedure, the EC said the measure violated European Union rules on free movement of goods, services and road transport services, as well as on freedom of establishment and the free movement of workers and their equal treatment.

The price caps in Hungary are set at HUF 595/liter for petrol and HUF 615/liter for diesel. Vehicles with foreign number plates now pay market rates of around HUF 667/liter for petrol and HUF 697/liter for diesel.

EC takes decisions in infringement procedure cases against Hungary

The European Commission on Wednesday took decisions in several infringement procedure cases against Hungary.

In its April package, the EC called on Hungary to align its national laws with European Union rules on combating migrant smuggling.

The procedure was launched because Hungary had allegedly failed to impose effective, proportionate and deterrent sanctions for migrant smuggling offences. The EC warned that the lack of effective prosecution of suspected smugglers not only undermined the EU's high level of security but also weakened immigration and border control policies.

Hungary, alongside Czechia, was referred to the Court of Justice of the European Union for the incorrect transposition of EU rules on the European arrest warrant. The EC said Hungarian law incorrectly required judicial authorities to refuse requests related to certain offences not punishable under Hungarian law.

The executive body also urged Hungary to transpose EU rules on gender balance in corporate leadership. The directive aims for at least 40 percent of non-executive director positions or 33 percent of all director positions in listed EU companies to be held by women.

Deutsch: Fidesz-KDNP initiates EP draft to lift Article 7 procedure against Hungary

MEPs of Hungary's outgoing ruling Fidesz and Christian Democrat parties have initiated that European Parliament's LIBE committee should prepare a draft resolution aimed to terminate the European Union's Article 7 procedure under way against Hungary, Tamas Deutsch, the head of the group, said in a statement on Wednesday.

"Enough of Brussels' continued punishing Hungarians for political reasons; for us Hungary continues to be first, we will stand up for the Hungarian people," he said.

According to Deutsch, Manfred Weber, the head of the European People's Party, "has admitted that the Article 7 procedure is used solely for the purpose of putting political pressure on Hungary". "Hungary has never had rule of law problems, the procedure has been an act of political punishment," he added.
 

"Brussels has abused its powers ... to silence patriotic voices and interfere in Hungary's election on the side of Hungary's pro-Brussels forces," he insisted.

He said "this story, which has been going on for long years, is unacceptable ... it must be stopped immediately."

Photo: European Commission

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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