Hungary risks EU fines: Brussels demands end to construction material export restrictions

The European Commission has formally warned Hungary that it must remove restrictions on the export of construction materials or risk further legal action and possible financial sanctions.

The move comes after the country failed to comply with a ruling by the Court of Justice of the European Union (CJEU), which last year found that the Hungarian government’s export restrictions violate EU law.

Brussels has now issued a letter of formal notice under Article 260 of the Treaty on the Functioning of the European Union, giving Hungary two months to respond. If the Commission finds the response unsatisfactory, the case could be referred back to the EU court, this time with a request for financial penalties.

Pandemic-era measures still in place

Hungary introduced the restrictions in 2021, during the global supply chain disruptions triggered by the COVID-19 pandemic. The government argued that export controls were necessary to prevent shortages of key construction materials in the domestic market.

Under the system, companies planning to export certain construction products had to notify authorities in advance, and the Hungarian state retained the right of first refusal to purchase those materials before they could be sold abroad.

However, the Commission argued that the policy effectively limited exports to other EU countries.

EU court ruling: barriers to the Single Market

In November 2025, the CJEU ruled that Hungary had failed to meet its obligations under EU treaties. The court concluded that the measures had the clear objective of restricting exports and therefore had an effect equivalent to quantitative export limits.

Such restrictions generally violate one of the EU’s core principles: the free movement of goods across the Single Market.

The court also criticised Hungary for adopting the measures before the end of a mandatory standstill period and for failing to properly notify the Commission about the revised regulatory plans, breaching EU rules on technical standards.