NEWSROOM

European Parliament sets a new, intermediate and binding 2040 EU climate target

As confirmed in the Competitiveness Compass, Europe has set out an ambitious framework to become a carbon-neutral economy by 2050. The EU has set its climate targets for 2030 and 2050 in Regulation (EU) 2021/1119 establishing the framework for achieving climate neutrality (the European Climate Law).

The EU reforms its VAT system gradually in the upcoming years

On 14 April 2025, VAT in the Digital Age (ViDA) came into force, radically transforming the rules on invoicing and electronic data reporting by 2030 at the latest, ushering in a new era of VAT administration digitization in Europe.

EU unveils “Digital Omnibus” – major shake-up for AI, data and cybersecurity rules

On 19 November 2025, the European Commission presented a broad reform package known as the Digital Omnibus. The initiative aims to simplify overlapping digital regulations in areas such as artificial intelligence, data protection and cybersecurity. According to the Commission, these changes could save EU companies up to €5 billion in administrative costs by 2029.

Hungary introduces environmental tax incentive

The laws adopted by the Hungarian Parliament in late November 2025 introduce a number of tax changes as of 2026, including the introduction of a new environmental tax incentive. The amendment enters into force on 1 January 2026 and supplements Chapter III of the Corporate Tax Act with a new subsection regulating a tax incentive for investments and refurbishments aimed at the remediation of environmental damage or other specified environmental objectives.

Significant Changes to the Civil Code and the Rules Governing the Escrow of Attorneys

The Hungarian Parliament is already debating a bill submitted by the Minister of Justice on 11 November 2025. The bill includes significant changes to the Civil Code based on the case law of previous years and contains new obligations to lawyers concerning custody, as the Constitutional Court has ruled that the stricter rules shall be passed.

The EU’s New Border Registration System Has Been Introduced

The EU’s border registration system, called the Entry/Exit System (‘EES’), was introduced on 12 October 2025 in all EU member states except Ireland and Cyprus, and it also applies to Iceland, Norway, Switzerland, and Liechtenstein.

New Rules for Simplified Employment

The simplified employment relationship is a special form of employment in which the legislator, taking into account specific economic sectors and types of work, allows work to be carried out with less administration and more flexible, streamlined rules than those applying to traditional employment.

A boost for fair pay: EU court ruling supports Hungary’s rising wages

On 11 November 2025, the Court of Justice of the European Union (CJEU) upheld the validity of the Directive on Adequate Minimum Wages, confirming that its core provisions remain in force across the EU.

Hungarian Parliament passes new tax relief package – key takeaways for businesses

In mid-November, the Hungarian Parliament adopted an 11-point tax and administrative relief package.

Taxing carbon quotas is unlawful, according to the EU Court’s Advocate General

The Advocate General of the Court of Justice of the EU (“CJEU”) has declared Hungary’s carbon quota tax incompatible with EU law. This finding can have serious consequences for both the state budget and the affected companies.