Press Release: Free movement of capital: Commission opens infringement procedure against Hungary on rights of cross-border investors to use agricultural land

The European Commission decided on the 16 October 2014 to formally request Hungary to submit its observations on its legislation terminating certain contractual rights of investors to use agricultural land.

In the Commission’s view, Hungarian legislation restricted the rights of cross-border investors in a way that might violate EU law on free movement of capital and freedom of establishment. Any restriction to these basic Treaty freedoms had to be duly justified and comply with the principle of proportionality. Even though Member States were permitted to set their own rules governing the system of property ownership, this had to be done within the limits of EU law.

• Primary Source

European Commission: RAPID: MEMO/14/589: October infringements package: main decisions http://europa.eu/rapid/press-release_MEMO-14-589_en.htm

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