Hungary unveils new ‘clean up’ plan as governemnt takes first steps to unlocking frozen EU funds

Hungary unveils new clean up plan to unlock EU funds

Poinews.com – Hungary unveils new clean up plan as the government takes decisive steps toward unlocking frozen European Union funds. The Hungarian Integrity Authority has announced the creation of a comprehensive register for economic operators excluded from public procurement due to criminal offences. This strategic initiative serves dual purposes: eliminating systemic abuses while providing businesses with an opportunity for self-cleaning and rehabilitation. Budapest officials emphasized that entities demonstrating they have “restored their trustworthiness” will receive consideration for removal from the exclusion register.

Building a transparent exclusion database

The Hungarian Integrity Authority is simultaneously launching registration procedures and establishing a publicly accessible database of excluded economic operators. This database will prevent any economic operator from participating in public procurement when its executive officer, supervisory board member, managing director, or beneficial owner has received a final court decision for criminal offences under the Public Procurement Act. The authority clarified that public disclosure serves not as stigmatisation but as a preventive mechanism to safeguard procurement integrity and stop recurring abuses.

According to government sources, this database represents a cornerstone of Hungary’s broader reform agenda. By making exclusion information transparent, the system ensures accountability across all levels of public procurement. The register will track not only the excluded entities themselves but also their key decision-makers and beneficial owners, creating a comprehensive picture of compliance within the sector.

The self-cleaning procedure operates ex officio through electronic administration, streamlining the process for all parties involved. When an economic operator files an objection, it must document that it has compensated damages caused by the criminal offence to the extent accepted by the injured party, or committed to doing so by a specified deadline. Additionally, the operator must demonstrate active cooperation with competent authorities, complete clarification of all facts and circumstances, and implementation of technical, organisational, and personnel measures to prevent future offences.

“The self-cleaning mechanism provides a fair pathway for businesses to rehabilitate their standing while protecting public interests,” stated a government spokesperson.

Relevant authorities have been granted 20 days to evaluate appeals and entries before deciding whether to remove the economic operator from the register. Once processed, the new register becomes immediately available through the Electronic Public Procurement System, ensuring real-time accessibility for all stakeholders involved in Hungarian public procurement.

What this means for EU funding

The establishment of this register represents a critical milestone in Hungary’s relationship with European Union institutions. By demonstrating concrete progress in addressing procurement irregularities, Budapest has positioned itself favorably for the resumption of frozen funds. The government’s approach balances strict enforcement with opportunities for rehabilitation, reflecting a nuanced understanding of both accountability and economic recovery.

Industry observers note that the self-cleaning provision is particularly significant for businesses that may have been inadvertently affected by criminal offences committed by individual executives or board members. This approach allows companies to maintain their participation in public procurement while demonstrating genuine commitment to ethical standards.

Frequently Asked Questions

What is the Hungarian Integrity Authority’s new register? The register tracks economic operators excluded from public procurement due to criminal offences committed by their key personnel or beneficial owners.

How long do authorities have to process appeals? Relevant authorities have 20 days to assess appeals and decide whether to remove an economic operator from the exclusion register.

What qualifies as self-cleaning under the new system? Self-cleaning requires compensation of damages, active cooperation with authorities, full clarification of facts, and implementation of preventive measures.

How does this affect EU funding for Hungary? The register is considered essential for the resumption of frozen EU funds, as it demonstrates Hungary’s commitment to procurement integrity.

Where can businesses find information about the new register? The register is available through the Electronic Public Procurement System, providing real-time access to all stakeholders.