Hungarian Government Proposes Modifications to Retail Regulation to Strengthen Local Community Protections
The architectural state secretary cites increased regulatory circumvention as a key reason for the amendments to the 'plázastop' regulation.
The Hungarian government announced plans to modify the 'plázastop' regulation, a directive aimed at controlling the establishment of large retail spaces.
Lánszki Regő, the state secretary for architecture, emphasized that these amendments are necessary due to a prevailing trend of regulatory circumvention among businesses rather than cooperation with local communities.
The proposed changes aim to enhance protections for local communities and residents against the potential negative impacts of large commercial developments.
The Ministry of Construction and Transportation (ÉKM) issued a draft of the amendment to Government Decree 143/2018 on August 13, 2018, which is currently undergoing public consultation.
The summary of the draft indicates that it seeks to clarify the detailed rules applicable during the change of use permit process, based on experiences from legal applications that highlight the need for clearer guidelines regarding cases requiring such permits.
The National Association of Retailers (OKSZ) has publicly stated that the legislative changes impose what it describes as an unnecessary bureaucratic burden on industry players, potentially leading to store closures, and adversely affecting the already struggling investment volume.
In response to these concerns, the ÉKM clarified that the intent of the regulation modifications is not to impose restrictions or excessive regulation but to protect and uphold the original objectives of existing laws.
In a statement released via social media, Lánszki Regő confirmed that since the ÉKM took over the operations of the Plaza Committee two months prior, they observed an increase in the tendency to circumvent regulations rather than seek cooperation with authorities.
Consequently, he argued that the modifications are crucial.
Public consultation on the proposed changes has concluded; however, the state secretary remains open to receiving feedback and ideas, and ongoing discussions with representatives from the industry and the market will continue.
Lánszki Regő, the state secretary for architecture, emphasized that these amendments are necessary due to a prevailing trend of regulatory circumvention among businesses rather than cooperation with local communities.
The proposed changes aim to enhance protections for local communities and residents against the potential negative impacts of large commercial developments.
The Ministry of Construction and Transportation (ÉKM) issued a draft of the amendment to Government Decree 143/2018 on August 13, 2018, which is currently undergoing public consultation.
The summary of the draft indicates that it seeks to clarify the detailed rules applicable during the change of use permit process, based on experiences from legal applications that highlight the need for clearer guidelines regarding cases requiring such permits.
The National Association of Retailers (OKSZ) has publicly stated that the legislative changes impose what it describes as an unnecessary bureaucratic burden on industry players, potentially leading to store closures, and adversely affecting the already struggling investment volume.
In response to these concerns, the ÉKM clarified that the intent of the regulation modifications is not to impose restrictions or excessive regulation but to protect and uphold the original objectives of existing laws.
In a statement released via social media, Lánszki Regő confirmed that since the ÉKM took over the operations of the Plaza Committee two months prior, they observed an increase in the tendency to circumvent regulations rather than seek cooperation with authorities.
Consequently, he argued that the modifications are crucial.
Public consultation on the proposed changes has concluded; however, the state secretary remains open to receiving feedback and ideas, and ongoing discussions with representatives from the industry and the market will continue.
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