Xpat Opinion: Case Closed: EU Says Hungary’s Telecom Tax Does Not Infringe

  • 29 Jul 2013 9:00 AM
Xpat Opinion: Case Closed: EU Says Hungary’s Telecom Tax Does Not Infringe
By Ferenc Kumin: The European Commission has decided to drop its infringement procedure against Hungary regarding the Orbán government’s recently-introduced tax on the telecommunication sector, Reuters reports. Before you click to another page, let me just underline an important detail here.

Sometimes, a European Union member state introduces a change – a new law, for example – and the European Commission questions that change. The formal challenge looks at whether the member country’s new law infringes up the laws of the European Union. That’s why it’s called an infringement procedure.

Some seem to think that this infringement procedure is itself a disciplinary move against the member state, assuming that the Commission is right and the specific country is wrong. That’s a mistake.

The infringement procedure is an evaluation. The European Commission evaluates the change and, if it finds that it is at odds with EU law, then it recommends changes. But it may also find that it doesn’t infringe and then it drops the matter. If the member state and the Commission cannot agree over the findings and recommendations, then they go to the European Court, which makes the final call. It’s pretty clear, a discussion between the EU and one of its members.

That’s what we see with Hungary’s “telecom tax.” The Commission, after review, simply found that this tax did not infringe upon EU law. A similar case just recently ended in France’s favor. No double standards here.

Of course, some were quick to call this a “victory for Orbán,” but that’s just off the mark. This was simply about an infringement procedure, something that happens all the time in the EU, and it’s proof that a constructive dialogue exists between Hungary and the European Commission, which is, according to the treaties, the only EU institution that has the power to review the laws of a member country like this. That’s one of the reasons why my government has been critical of the European Parliament trying to take over this role.

The point here is that an infringement procedure is not some kind of indicator of whether a country is ‘in line’ with European core values. It’s not an indication that the EU is cracking down on one of its members. It’s a legal procedure, and it happens all the time among EU members. And as we have seen this week, sometimes, after a careful, fact-based review, the case is simply dropped.

Source: A Blog About Hungary

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