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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.
Potential impact on EU construction projects
According to the Commission, export restrictions can disrupt cross-border supply chains and negatively affect businesses operating in the European market.
Brussels warned that national barriers like these can slow economic activity and undermine construction projects across the EU, including developments relied upon by citizens and companies in multiple Member States.
Other EU procedures launched against Hungary
The dispute over construction materials is not the only ongoing legal issue between Brussels and Budapest. On the same day, the European Commission also launched additional procedures involving Hungary.
In one case, Hungary and Poland received a reasoned opinion for failing to correctly implement EU rules designed to combat fraud affecting the EU budget. The directive harmonises definitions, sanctions and jurisdiction rules related to crimes harming the Union’s financial interests. According to the Commission, some compliance issues remain in Hungary, particularly regarding the effectiveness of certain sanctions.
Separately, the Commission opened infringement procedures against 19 EU Member States, including Hungary, for failing to submit draft national building renovation plans required under the revised Energy Performance of Buildings Directive. These plans are intended to outline how countries will modernise their building stock to become energy-efficient and decarbonised by 2050.
In both cases, Hungary has two months to respond before the Commission decides whether to escalate the matters further, potentially referring them to the EU court.
If Hungary also fails to bring its construction export rules in line with EU law within the given timeframe, the Commission could return to the court and seek financial sanctions against the country.
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