In a judgment handed down on Thursday 13 November (Case C-499/23), the Court of Justice of the European Union ruled that Hungary had infringed EU law by restricting the export of raw materials and construction materials during the Covid-19 pandemic.
The European Commission is contesting the Hungarian procedure for notifying exports of products, arguing that such a measure amounts to an unjustified quantitative restriction contrary to the principle of the free movement of goods. Furthermore, since the restrictions extend to exports to third countries, it argues that Budapest has disregarded the EU’s exclusive competence in trade matters.
In its judgment, the Court upheld the Commission’s action in its entirety. In its view, the measures at issue create an additional administrative burden, impose a fine for failure to comply with the notification obligation, extend delivery times and, if the Hungarian State’s right of pre-emption and purchase is exercised, definitively prevent the export transaction. In its view, these measures are tantamount to quantitative export restrictions, which are prohibited under EU law.
According to the European Court, Hungary had not demonstrated that the shortage of the products in question could constitute a threat affecting a fundamental interest of Hungarian society. Nor is it entitled to invoke public safety to justify the restrictions imposed, which were adopted before a three-month suspension period and without being notified to the Commission.
See the judgment of the Court of Justice: https://aeur.eu/f/jf4 (Original version in French by Mathieu Bion)