The European Commission has put Hungary under fire

The European Commission is also initiating proceedings in three important cases due to the measures taken by the Hungarian government. The first one, which Portfolio has already written about, is that in the case of the highway concession contract, several objections were raised in Brussels, for which a letter of warning was sent.

According to the Commission’s point of view, the 35-year concession awarded by Hungary was not transparent with regard to the estimated contract value, does not sufficiently transfer operational risk, and is for an unreasonably long period of time, which violates EU law. This was attacked by several non-governmental organizations, subcontractors also filed a competition law complaint with the Commission earlier, but Transparency International turned to Brussels with the objections that form the basis of the current infringement procedure.

As is known, the National Concessions Office awarded the operation of the domestic roads to the consortium of Themis Private Equity Fund, Konzum Equity Fund, Opus Bridge Private Equity Fund, Opus New Way Private Equity Fund, Cronus Private Equity Fund, Vesta Private Equity Fund and Via Private Equity Fund in 2022. Among the companies, there are enterprises belonging to the interests of Lőrinc Mészáros and László Szíjj, who regularly participate in Hungarian road renovation public procurements. At the time of the announcement, the minister responsible for concessions, Antal Rogán, was also asked whether he was afraid that the system would be criticized for this, that an EU procedure might be initiated, but he said that they were successful domestic companies that had won a competition.

At the end of last summer, the MKIF Magyar Koncessziós Infrastructura Fejlsztő Zrt. was established to facilitate the development, operation and maintenance of highways and expressways.

On the subject of concessions, the Commission is also taking action because of the Spanish road tender, but against Spain because it extended the duration of two highway concessions without the correct application of public procurement procedures, thereby violating EU rules.

Member States now have two months to respond to the Commission’s arguments. If this is not done, the Commission may decide to issue a reasoned opinion and then refer the entire case to the Court of Justice of the European Union.

The Government Information Center reacted

According to the KTK, it is taking legal action due to the action of the European Commission. “Brussels repeatedly applies double standards to the detriment of Hungary. He has now initiated breach of duty proceedings in connection with a highway concession that meets the highest requirements, which he has granted to many other Member States for investments of a similar content, citing reasons that have been falsified,” they wrote in the statement. The same happened in Spain, where infringement proceedings were initiated in connection with two highway concessions.

They are also dissatisfied with asylum and the Lex CEU

In another proceeding, proceedings are being initiated against Hungary due to the execution of a court ruling on effective access to international protection.

The European Commission has decided to send a letter of demand to the government for not complying with the C-823/21 order issued by the Court of Justice of the European Union (ECJ). no., of the judgment in the European Commission v. Hungary case. On June 22, 2023, the Court found that Hungary failed to fulfill its obligations arising from the EU asylum rules, as it did not ensure effective access to the international protection procedure for third-country nationals or stateless persons.

According to Hungarian legislation, in order to be able to apply for international protection in Hungary, third-country nationals must first submit a declaration of intent at a Hungarian embassy located outside the territory of the European Union, in which they declare that they wish to apply for asylum, and must also have a special entry permit issued for this purpose.

As the Commission has not received information that Hungary has taken measures to remedy the established violation, it believes that Hungary has not fulfilled its obligation to take the necessary measures to implement the court judgment. The government has two months to respond to the demand letter. In the light of the response received, the Commission may, where appropriate, decide to refer the case back to the Court and recommend the imposition of financial sanctions.

They are also taking action against Hungary in the implementation of the court ruling on the conditions for the provision of higher education services.

By means of a letter of formal notice, the European Commission is launching infringement proceedings against Hungary for not fully complying with EU law and for not implementing C-66/18 of the Court of Justice of the European Union. judgment in case no.

On October 6, 2020, the European Court of Justice found that Hungary violated EU legislation and the General Agreement on Trade in Services (GATS), as Hungary made the diploma-granting training activities subject to two conditions in the case of foreign higher education institutions outside the European Economic Area (EEA). practice in the field.

This essentially states the judgment in the CEU case and the incompatibility of Hungarian legislation with EU law.

According to Hungarian legislation, an international agreement must exist between the government and the government of the state where the relevant institution is based. It was also stipulated as a condition for the activity in Hungary that the educational institution must provide higher education training in the country of its headquarters, also in the case of the member states of the EEA. The new legislation adopted on May 18, 2021 no longer includes the second mentioned requirement, however, it still stipulates that an international agreement must exist between Hungary and the country of its headquarters, which is why they are constantly violated in the GATS and the Charter of Fundamental Rights of the European Union laid down principles.

The Commission is therefore sending a letter of notice to the Hungarian government, which has two months to respond to the letter and remedy the deficiencies identified by the Commission. In the absence of a satisfactory answer, the Commission may refer the case to the Court of Justice of the European Union. In cases brought before the Court for the second time, until full compliance is achieved, retroactive financial sanctions may be imposed for the period that has passed since the first judgment was rendered.

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