Finance
EU court strikes down Hungary's export control on materials
Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 13, 2025
2 min readLast updated: January 21, 2026
The EU Court of Justice ruled against Hungary's export controls on construction materials, citing a breach of EU regulations on free movement of goods.
(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 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.
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 had said the measure was necessary to protect critical infrastructure, by ensuring the security of supply of construction materials.
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)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
The principle of free movement of goods allows for the unrestricted movement of goods within the European Union, prohibiting trade barriers among member states.
Construction materials are the raw materials used in the construction of buildings and infrastructure, including items like wood, concrete, steel, and bricks.
The EU Court of Justice is the highest court in the European Union, ensuring that EU law is interpreted and applied consistently across member states.
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