Politics and Profits: How Hungarian–Romanian Relations Shape Corporate Affairs
Politics and Profits: How Hungarian–Romanian Relations Shape Corporate Affairs

Summary/Abstract: This article examines two parallel episodes of state pushback against foreign investors. Between 2018 and 2022, Romania vetoed the expansion of Hungary’s OTP Bank, while Hungary forced Romania’s Digi Communications to sell its local business. Both decisions unfolded amid heightened Hungarian–Romanian political frictions. Drawing on regulatory files, corporate filings, and press coverage, the study traces how each government used licensing, competition law and sector-specific regulation to shield “national champions” and sideline firms portrayed as extensions of the neighbouring state. These cases reveal a recurring pattern, labelled selective sovereignty: a two-step process combining economic-nationalist gate keeping with bilateral political filtering to determine which foreign firms are welcomed or sidelined. By placing interstate politics at the centre of analysis, the article extends accounts of economic and financial nationalism, demonstrating that state activism is not only sector-specific but also directionally targeted according to the political temperature of bilateral relations. The findings highlight the limits of market integration when national politics influence ostensibly technical regulatory decisions, offering insights for policymakers navigating cross-border investment in the EU.

• Details
• Contents