EU Court Overturns Hungary’s Export Controls on Construction Materials

The European Union’s Court of Justice ruled on Thursday that Hungary’s export restrictions on raw and construction materials violate EU law.

The decision came after the European Commission sued Hungary over a regulation requiring companies to notify the state before exporting construction materials, giving the government the right of first refusal to purchase those goods.

The Commission argued that the law breached the EU’s principle of free movement of goods among its 27 member states and encroached on the EU’s exclusive competence in trade policy.

Hungary defended the measure, claiming it was necessary to secure the supply of construction materials and protect critical infrastructure.

However, the court dismissed Hungary’s arguments and upheld the Commission’s position on all counts.

“These measures clearly aim to restrict the export of construction materials,” the court said, “which is contrary to the principle of the free movement of goods.”

It further noted that Hungary had failed to demonstrate that shortages of raw or construction materials posed a “genuine and sufficiently serious threat.”