Hungary opens public register barring convicted firms from EU tenders

Hungary’s Integrity Authority has launched a public register that bars economic operators whose senior officials or beneficial owners have final criminal convictions from EU-funded public procurement and gives authorities 20 days to assess objections and decide on removal. The database excludes companies when an executive officer, supervisory-board member, managing director or beneficial owner has been subject to a final court decision for criminal offences under the Public Procurement Act, Euronews reported.

The government describes the measure as essential for resuming frozen EU cohesion funding and as a tool both to weed out abuse and to offer a path for self-cleaning, according to Euronews. Operators who prove they have “restored their trustworthiness” may have their names removed.

Appeals and conditions

An economic operator lodging an objection must demonstrate that it has compensated the damage caused by the criminal offence and introduced technical, organisational and personnel measures to prevent further offences. The relevant authorities then have 20 days to assess the appeal and decide whether to remove the firm from the register.

EU funds link

The register forms part of Budapest’s first concrete steps to satisfy EU rule-of-law conditions for releasing previously frozen cohesion funds. The Integrity Authority is now launching the first registration procedures.

The next test is whether Brussels considers the register sufficient to release the frozen cohesion funds.