Hungary’s law for foreign investments with security risks to come into effect in 2019

A law mandating the supervision of foreign investments that potentially harm Hungary’s security will come into effect on January 1, 2019, according to a legislative amendment.

Originally the law was set to come into force on October 1 but parliament‘s legislative committee on Thursday postponed the date to allow for “appropriate preparation”.

The law would make investments from outside the European Union and the European Economic Area in the areas of national security, public security and those affecting economic and public health interests dependent on clearance from the interior minister.

Such fields would include weapons manufacturing, financial services, the energy industry and electronic communications.

Violating reporting obligations could result in fines while in some cases the government would get pre-emptive purchasing rights.

Photo: MTI

Source: MTI