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Oct 08, 2018

Hungary contests amendment of the Posted Workers Directive submitted to European Court of Justice

Hungary holds the position that the new regulations restrict the freedom of the provision of services disproportionately and reduces the entire EU’s competitiveness

The Hungarian government has contested the amendment of the Posted Workers Directive submitted to the Court of Justice of the European Union.

Ever since the publication of the European Commission’s proposal in March 2016, Hungary has consistently opposed the amendment because it forces workers out of the labor markets of other Member States as a means of protectionism.

Hungary has held the position that the new regulations restrict the freedom of the provision of services disproportionately and reduces the entire EU’s competitiveness. The government also found it objectionable that the European Commission upheld its original proposal despite the fact that fourteen chambers of national parliaments from eleven Member States, including the Parliament of Hungary, raised objections to the proposal.

Hungary found the extension of the posted workers regulations to international road transport activities particularly unacceptable as these are characterized by a high degree of mobility.

Hungary and Poland also argued in a common declaration that the regulations adopted cannot in any way be regarded as balanced in light of the fact that the special rules applicable to road transport are still being negotiated as part of a keen debate.

During the talks Hungary made every effort to reach a reasonable compromise that is acceptable for all Member States. As this approach was rejected, and additionally as the final wording of the directive is even more detrimental to the region’s businesses than suggested in the European Commission’s original proposal, the government contested the EU directive.