Within the framework of emergency measures stemming from the COVID-19 epidemic, the Hungarian Government introduced sweeping new measures to screen foreign investment during the ‘state of danger’ in May 2020 (see our Law_Point post at https://lawpoint.oppenheimlegal.com/showlawpoint?id=58MBD3jQWERZFrMlVQif_NHXEvSb3Bf_)
On 18 June 2020, the Hungarian Government terminated the ‘state of danger’, however, the Hungarian Parliament voted to continue certain protective measures – including foreign investment screening measures - in the form of a new law (Act LVIII of 2020 on the ‘interim measures and epidemiological preparedness related to the terminating of state of danger’, the ‘Interim Measures Act’).
The rules of the Interim Measures Act basically continue the screening framework established in May: notification is required to the Minister for Innovation and Technology (and possibly, under a parallel regime, to the Minister for Interior), if (i) a triggering event (ii) by a foreign investor (iii) concerns a Hungarian strategic company. Failure to give notification entails significant sanctions and fines (for details, see our earlier Law_Point post).
The new regime is applicable from 18 June 2020 and is currently set to expire on 31 December 2020.
Below, we note the most important changes.