New infringement procedure launched against Hungary

The European Commission on Wednesday launched an infringement procedure against Hungary over discriminatory fuel prices for cars registered outside of the country. Meanwhile, the EC called on Hungary to align its national laws with European Union rules on combating migrant smuggling. Finally, the EC sued Hungary for failing to bring its retail tax regime in line with European Union rules.

New infringement procedure launched against Hungary

Early in March, Hungary’s government introduced caps on motor fuel prices for vehicles registered in Hungary to mitigate the impact on markets of the conflict in the Middle East and the shutdown of the Druzhba pipeline, through which Hungary gets its Russian crude.

In the announcement of its decision to send Hungary a letter of formal notice, marking the start of an infringement procedure, the EC said the measure violated European Union rules on free movement of goods, services and road transport services, as well as on freedom of establishment and the free movement of workers and their equal treatment.

The price caps in Hungary are set at HUF 595/liter for petrol and HUF 615/liter for diesel. Vehicles with foreign number plates now pay market rates of around HUF 667/liter for petrol and HUF 697/liter for diesel.

EC takes decisions in infringement procedure cases against Hungary

The European Commission on Wednesday took decisions in several infringement procedure cases against Hungary. In its April package, the EC called on Hungary to align its national laws with European Union rules on combating migrant smuggling.

The procedure was launched because Hungary had allegedly failed to impose effective, proportionate and deterrent sanctions for migrant smuggling offences. The EC warned that the lack of effective prosecution of suspected smugglers not only undermined the EU’s high level of security but also weakened immigration and border control policies.

Hungary, alongside Czechia, was referred to the Court of Justice of the European Union for the incorrect transposition of EU rules on the European arrest warrant. The EC said Hungarian law incorrectly required judicial authorities to refuse requests related to certain offences not punishable under Hungarian law.

The executive body also urged Hungary to transpose EU rules on gender balance in corporate leadership. The directive aims for at least 40 percent of non-executive director positions or 33 percent of all director positions in listed EU companies to be held by women.

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EC sues Hungary over retail tax regime

The European Commission on Wednesday said it decided to refer Hungary to the Court of Justice of the European Union (CJEU) for failing to bring its retail tax regime in line with European Union rules.

The EC said the regime subjects foreign-owned retailers to “high and steeply progressive” tax rates on turnover, while favouring locally-owned chains that operate as franchises, violating EU rules on the freedom of establishment.

The EC launched the infringement procedure against Hungary regarding the retail tax regime in October 2024. It took the procedure to the penultimate level in June 2025, sending authorities a “reasoned opinion”.

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