As much as it would have liked, the Sánchez cabinet cannot swim dry, as it did with Magyar Vagon during the Talgo acquisition. The Spanish government screwed up the Hungarian deal of the century, and in return is now getting the lawsuit of the century.
Without exaggeration, the Hungarian business of the century took a huge turn with the purchase of the Spanish train factory, Talgo. As is known, the acquisition of the Magyar Vagon group became impossible after the Spanish government, apparently for political reasons, vetoed the deal, which was supported by all market parties and all supervisory bodies.
One could have thought that the Spaniards, and more precisely the socialist government led by Pedro Sánchez, would not have a more ugly move in the case of the Talgo acquisition than when they rejected the Magyar Vagon group's offer in August for national security reasons.
Then in November it turned out that they still had at least one hit below the belt.
The Spanish Central Intelligence Agency, the CNI, has announced that it will not declassify the Talgo report, which has been highly questioned in professional circles. This is the document that the Spanish government used to cross the Hungarians. Since the Spanish services keep it a secret, what they based their findings on, it could be concluded that
it will most likely never become clear why they claim that Hungarian investors are under Russian influence and therefore pose a national security risk.
The reports about the development appeared in the Spanish press in such a way that it was decided: the Hungarian investors abandoned their intention to take the Spanish government's veto to court. On paper, the Spanish Supreme Court could have asked the Spanish Intelligence Service to make their investigation available, but there was no reality in sight of its fulfillment.
The reason for this is simply the tactical move of the Spanish government: by raising the veto citing intelligence reports, it directed the legal war into a field that is essentially impossible for the lawyers of the Hungarian consortium to win. The Spanish Supreme Court cannot overrule the CNI's decision, as it does not have the competence to do so, it is the sole responsibility of the executive branch, i.e. the Spanish government.
So it could easily be that the explanation of the Spanish intelligence was made out of thin air, and in fact the sale of the Spanish train manufacturer, Talgo, does not pose any national security risk if the buyer is the Magyar Vagon group, yet all of this will never be legally refuted.
Until November, it seemed that this could be the end - from the Hungarian point of view - of the deal of the century. The Spanish government essentially walled itself in by requesting an intelligence report on the Magyar Vagon, regardless of its content. This made it impossible for the Hungarians to win legally.
According to previous information from the Spanish media, the Hungarians could have submitted a claim to the Supreme Court against the Spanish government's decision by the end of October. According to all indications, however, this did not happen, after Magyar Vagon could see that it would be an impossible mission to achieve a turnaround in court, but in return it would be costly.
But now there has been a huge turnaround and it can be stated that the Magyar Vagon group will take the Spanish government to court.
For the interest of Világgazdaság, Magyar Vagon Befektetési Vagyonkeszelá Zrt. (MVBV) informed that "a claim has been submitted on behalf of the Magyar Vagon group of companies". When the paper inquired about this, the following reaction was received:
"The Magyar Vagon group confirms once again that the claim has been submitted. The company group does not wish to comment on an ongoing case, we will respond to press inquiries after the conclusion of the procedure," wrote Diána Kiss, MVBV's business development manager.
In other words, no matter how much it wanted to, the Spanish government will not get away with what it did with Magyar Vagon during the Talgo acquisition. The "revenge" of the Hungarians overtook the Sánchez cabinet, which must account before the judiciary.
The deal of the century will therefore continue as the trial of the century, the only question is which court.
One possible legal forum is the aforementioned Spanish Supreme Court. However, the procedural obstacles discussed above must be taken into account here. The other is the European court, where the Hungarian consortium can also appeal. The fact that the Spanish government excluded the Hungarians from the purchase of Talgo raises a violation of EU fundamental rights, especially the provision of the free flow of capital.
Magyar Vagon, however, did not wish to clarify to Világgazdaság exactly where it attacked the failure to acquire property in Talgó. That is why it cannot be declared, but perhaps there is still a better chance that the Talgo case will continue in the European Court.
Cover image: A huge turnaround in the business of the century, Pedro Sánchez will be forced to face the revenge of the Hungarians
Source: Facebook/Borja Puig de la Bellacasa
