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EC may launch litigation against Hungary over privatization rules

The European Commission might start litigation against Hungary over the country’s privatization regulations, Bloomberg has reported on Thursday, citing Austrian Press Agency (APA) as the source.

Charlie McCreevy, European Commissioner for the Internal Market and Services, has called on Hungary to comply with EU regulations, most likely reflecting to lex MOL, a draft law that was conceived to defend Hungary’s strategic assets against hostile takeovers. “Mr. McCreevy has informed the Hungarian government that if the actions or legislation currently envisaged by it were to put an impediment on economic actors from other EU states taking an interest in MOL, then he would recommend continuation of existing legal proceedings,” Reuters cited Oliver Drewes, a spokesman for EU Internal Market Commissioner Charlie McCreevy, as saying. The government decided to create lex MOL after Austrian fuels group OMV approached Hungarian MOL Nyrt with intention to merge the two companies. (read more) MOL flatly rejected the “offer" and the cabinet was also quick to label it as a hostile takeover attempt. (