Govt Submits Security Bill On Foreign Investments

  • 24 Jun 2018 10:27 AM
  • Hungary Matters
Govt Submits Security Bill On Foreign Investments
The government has submitted a bill to parliament on the control of foreign investments that present a danger to Hungary’s security interests.

The bill would require individuals and legal entities from outside European Union and European Economic Area and Switzerland that carry out investments in Hungary and become a major shareholder to seek approval from the relevant minister.

Similar rules may apply to the establishment of a branch office, according to a post on parliament’s website.

Permission, for example, will be needed for the production of arms and certain military technology, equipment used for intelligence gathering, the operation of certain financial services and payment systems, and activities covered by the laws relevant to energy, utilities and electronic communications.

The minister will have 30 days to examine whether any such acquisition harms the security interests of Hungary.

A fine of up to ten million forints may be imposed on any entity that fails to provide all the information requested, and in some cases the Hungarian state can exercise pre-emption rights. If approved, the law will enter into force on Oct. 1.

MTI Photo: Koszticsák Szilárd

  • How does this content make you feel?

XpatLoop Media Partner

Hungary Matters

Launched in January 2014, this twice-daily newsletter covers 'everything you need to know about what’s going on in Hungary and beyond', according to its publisher the state media agency MTI. Click the title above for more info, and to subscribe.

Explore More Reports

  • Local Opinion: European Parliament Vote Still Dominates News

    Local Opinion: European Parliament Vote Still Dominates News

    • 19 Sep 2018 8:42 AM

    A pro-government economist describes the European Parliament vote against Hungary as an attack by global liberal elites on Hungary and national sovereignty. A left-wing commentator believes that the EU wants to defend Hungarian national interests and democracy from the attack they are under from the government.

  • Hungary Gov't To Challenge Sargentini Vote In EU Court

    Hungary Gov't To Challenge Sargentini Vote In EU Court

    • 19 Sep 2018 8:22 AM

    Hungary’s government is taking its challenge against the European Parliament’s (EP) vote on the Sargentini report to the European Court of Justice, Gergely Gulyás, the head of the Prime Minister’s Office said.