(Reuters) -Export controls introduced by Hungary on raw materials and construction materials are in breach of European Union regulations, the EU's Court of Justice said on Thursday. The European
EU Court Overturns Hungary's Export Controls on Construction Materials
EU Court Ruling on Hungary's Export Controls
(Reuters) -Export controls introduced by Hungary on raw materials and construction materials are in breach of European Union regulations, the EU's Court of Justice said on Thursday.
Background of the Case
The European Commission had sued Hungary over a measure that requires the Hungarian state to be notified about any export of construction materials. The state then has the right to buy the materials instead.
Court's Findings
The Commission said this was a restriction that infringed the principle of free movement of goods within the 27-nation EU and also violated the bloc's exclusive competence in the field of commercial policy.
Hungary's Defense Arguments
Hungary had said the measure was necessary to protect critical infrastructure, by ensuring the security of supply of construction materials.
Implications for Trade in the EU
But the court dismissed Hungary's arguments and sided with the European Commission in all its complaints.
"(The) measures have the explicit object of restricting exports of construction materials... prohibited by the principle of the free movement of goods," the court said.
Hungary had also failed to demonstrate that the scarcity of raw materials and construction materials constituted "a genuine and sufficiently serious threat", it added.
(Reporting by Bart MeijerEditing by Gareth Jones)
