Economy
Commission opens infringement procedure against Hungary
In Hungary, a new law obliges retailers to apply the same profit margins to domestic and imported agricultural and food products, despite the fact that the cost of imported products is subject to currency and exchange rate fluctuations.
The Commission raised concerns on the basis of the principle of free movement of goods.
In Romania, large retailers are required to purchase at least 51% of food and agricultural products from local producers. This raises concerns with respect to freedom of movement of goods.
The same law also requires retailers to promote products of Romanian origin, restricting their commercial decision of which products to place on offer, which in turn runs counter to the freedom of establishment (Article 49 of TFEU).
The European Commission has also called on Hungary to establish the required strategic noise maps and action plans, as required under the EU rules to decrease noise pollution in the EU. Hungary has two months to act, or else it will face the Court of Justice of the EU.
This may discourage sales of imported agricultural and food products in comparison to domestic ones
, the EU executive said.The Commission raised concerns on the basis of the principle of free movement of goods.
In Romania, large retailers are required to purchase at least 51% of food and agricultural products from local producers. This raises concerns with respect to freedom of movement of goods.
The same law also requires retailers to promote products of Romanian origin, restricting their commercial decision of which products to place on offer, which in turn runs counter to the freedom of establishment (Article 49 of TFEU).
According to EU law restrictions of these freedoms are only permitted when there is a justified need to protect an overriding public interest, such as public health, and no less restrictive the measures can be taken.
“Neither Hungary nor Romania has provided evidence that their national measures are justified and proportionate. The Hungarian and Romanian authorities now have two months to respond to the arguments put forward by the Commission."The European Commission has also called on Hungary to establish the required strategic noise maps and action plans, as required under the EU rules to decrease noise pollution in the EU. Hungary has two months to act, or else it will face the Court of Justice of the EU.
