Press Release: Free movement of capital: Commission calls on Hungary to modify privatisation framework law

The European Commission on 28 June 2006 decided to ask Hungary formally to modify its privatisation framework law (Act XXXIX of 1995 on the Sale of State-Owned Entrepreneurial Assets), which it considered to be incompatible with EC law. The Commission considered that the law contained unjustified restrictions on the free movement of capital and right of establishment by conferring special rights for the state in 31 privatised companies in the form of voting priority ('golden') shares.

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