ECJ Judgment Declares Hungary Legislation A Deprivation of Property Rights
This followed a March 6, 2018 preliminary ruling of the ECJ holding that the legislation constituted an unjustified restriction on the free movement of capital.
In rendering its judgment, the ECJ noted that Article 17(1) of the Charter permits a deprivation of property “only where it is in the public interest and in the cases and under the conditions provided for by law, subject to fair compensation being paid in good time for their loss.” (¶ 87 of Judgment). The Court found that Hungary’s claims of public interest were inadequate, and that the legislation contained “no terms ensuring that the usufructuaries who have been deprived of their property receive compensation or laying down the arrangements for such compensation.” (¶ 127 of Judgment). This judgment thus clears the way for expropriation actions against Hungary for expropriation of property rights.
The press release is available here.
The full text of the judgment is available here.
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