2016 | Diciembre 2
The paper presents the saga of Hungary’s controversial arbitration regime in cases involving national property. It analyzes Hungary’s legislative efforts and ultimate failure to exclude arbitration in matters involving Hungarian national assets, demonstrating the efforts and the difficulties a country faces if it attempts to defy the prevailing pattern of dispute settlement in international trade.
A few years ago, Hungary enacted two laws that ruled out arbitration in disputes involving Hungarian national assets. The provisions enacted in 2011 and 2012 were led by the thinking that (private) arbitration did not secure the protection of the public interest. The regime rested on two pillars. First, public entities were prohibited from stipulating arbitration in civil-law contracts concerning national property. Second, the scope of non-arbitrability was extended to cases concerning national assets located on the territory of Hungary.