Breaking: New infringement procedure initiated against Hungary

The European Commission has launched a new infringement procedure against Hungary, focusing on the country’s public procurement practices. This action, announced on Wednesday, 12 February, stems from concerns over Hungary’s compliance with EU regulations governing public procurement processes.

The infringement procedure

According to HVG, the European Commission’s decision to initiate this procedure is based on allegations that Hungarian authorities have violated EU rules regarding public procurement procedures. The core issue revolves around a Hungarian law concerning state construction projects, which mandates that authorities use only one specific type of negotiated procedure in cases covered by the law.

European Commission infringement procedure — Photo: depositphotos.com

According to the Commission, this requirement contradicts the EU directive on public procurement, which stipulates the equal treatment of economic operators and the freedom for contracting authorities to choose the most appropriate procedure for their situation. The Commission argues that by limiting authorities to a single type of negotiated procedure, the Hungarian law deprives contracting authorities of their freedom of choice.

Next steps

As part of the infringement procedure, the European Commission has sent a letter to the Hungarian government, initiating the formal process. The Hungarian authorities now have a two-month window to respond to the Commission’s concerns. If the two parties fail to reach an agreement, the process may escalate to possible financial penalties, another round of correspondence or potential legal action.

Broader context

This new infringement procedure is not an isolated incident. The Commission has also taken action against Hungary and Poland for failing to fully transpose EU electricity market regulations, Telex writes. Additionally, Hungary, along with six other member states, is facing potential court action and fines for not implementing the directive on non-performing loans.

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Featured image: depositphotos.com