OKSZ: The population of small settlements is most affected by Lázár’s decree
With yet another measure, the government is burdening consumers by making it impossible to open new stores in properties that already have a valid commercial license. It is unclear who benefits from this deeply flawed regulation, but it is clear who will suffer: residents of towns and villages who will be deprived of the lower prices and discounts brought about by market competition.
The regulation extending the so-called plaza stop has been published. According to the decree, for stores larger than 400 square meters selling daily consumer goods, in cases of a change of ownership or the arrival of a new tenant, an additional permit must be obtained from the authorities—even if the building already has an operating license.
The decree is riddled with flaws:
- It is entirely incomprehensible why a new tenant or owner must reapply for a permit if the building is intended for exactly the same function as the previous—licensed—tenant or owner. Until now, building permits in Hungary were tied to the properties themselves, not to their owners, and certainly not to their tenants. Breaking with this principle could lead to serious uncertainties in the real estate market. This is a severe intervention with the sole aim of gaining control over commercial properties.
- The new regulation applies exclusively to stores selling daily consumer goods—primarily supermarkets and drugstores. Other stores of similar size, such as clothing, electronics, or sporting goods shops, are not affected. The regulation is therefore not general but selectively restricts certain types of outlets: a clothing store over 400 square meters requires no special permit, while a grocery store of the same size does. This distinction is professionally indefensible and places a severe competitive disadvantage on food and drugstore retailers, as well as on property owners who wish to sell or lease such premises.
The regulation could create particular difficulties in rural areas, where local supply often depends on these very stores. In the end, the law punishes Hungarian consumers by limiting their access to affordable, good-quality shopping and participation in retail promotions. With this law, the ministry effectively tells residents of such towns that meeting their daily needs is not important enough for them to have easy access to fair prices and discounts.
It is not true that the regulation merely clarifies the earlier law, nor that anyone meeting the requirements will automatically receive the permit. On the contrary: the decree expands the scope of the previous regulation and further complicates the service of the Hungarian population. During the permitting process, compliance with requirements is not the decisive factor—political considerations are. Based on the discriminatory practices of recent years, this foreshadows that despite public demand, retailers will not be able to enter new towns and cities, since applications from international retail chains are typically rejected by the plaza stop committee.
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