Orbán’s government cites state interests to justify controversial pre-emption rights 😔

The Hungarian government has amended a decree allowing the state to exercise a right of pre-emption on foreign investments in strategic companies, citing national economic interests. This change, effective from June 24, 2023, enables the state to intervene in transactions, potentially complicating and increasing costs for foreign investors. Critics argue that this measure undermines legal certainty and could deter investment in Hungary, as the state may act as both a regulator and a market player. The decree's urgency and retroactive application raise concerns about its implications for ongoing transactions and the overall investment climate.