The European Commission has formally requested Hungary and four other member states to amend legislation on the acquisition of agricultural land on the grounds that it violates the free movement of capital and freedom of establishment.
Hungary has a very restrictive system which imposes a complete ban on the acquisition of land by legal entities and an obligation on the buyer to farm the land himself. In the Commission’s view, the provisions in question also contain certain restrictions that may leave room for discriminatory treatment of investors from other member states.
In his regular weekly press briefing Minister for the Prime Minister's Office, Lázár János said Hungary is not going to back down on the issue. He said "it is going to be a war with Brussels".
The reasoned opinion sent by the EU is the second step in the infringement procedure. If countries fail to bring their national legislation into line with EU law within two months, the Commission may decide to refer these countries to the Court of Justice of the EU.
