The Hungarian Integrity Authority has begun compiling a publicly accessible register of economic operators excluded from public procurement after being convicted of criminal offences. The move, announced on Thursday, is a central element of Budapest's strategy to unlock European Union funding that has been frozen over rule-of-law concerns.
The register is designed to ensure that no company can participate in public tenders if its executives, supervisory board members, managing directors, or beneficial owners have been found guilty of crimes defined in Hungary's Public Procurement Act. The authority stressed that the list targets a clearly defined legal category and that publication is not about stigmatisation but about preventing further abuses and safeguarding the integrity of public procurement.
Self-cleaning mechanism offers a path back
Alongside the register, the Integrity Authority is launching a self-cleaning procedure that allows listed companies to seek removal if they can demonstrate they have restored their trustworthiness. According to the government, this mechanism is intended not only to weed out abuses but also to give firms a chance to reform.
Companies that object to their inclusion must provide documentation showing they have compensated the damage caused by the criminal offence, to the satisfaction of the injured party, or have committed to doing so by a specified deadline. They must also prove they have cooperated actively with the competent authorities, fully clarified the facts and circumstances of the case, and introduced the technical, organisational, and personnel measures needed to prevent further offences.
The relevant authorities have 20 days to assess appeals and decide whether to remove a company from the register. Once finalised, the list will be available through the Electronic Public Procurement System.
This development comes as Hungary continues to negotiate with Brussels over the release of cohesion and recovery funds, which have been suspended due to concerns about judicial independence, corruption, and public procurement transparency. The new register is seen as a concrete step toward meeting the EU's so-called horizontal enabling conditions, which require member states to have effective mechanisms in place to prevent conflicts of interest and fraud in the use of union money.
Analysts note that the register alone will not be enough to unlock the funds, but it signals a willingness by the government to address some of the technical requirements. The European Commission has repeatedly called for stronger safeguards, and the Integrity Authority's work will be closely scrutinised in the coming months.
Hungary's broader political landscape has also been in flux, with recent developments such as the upcoming presidential election and the rise of the Tisza Party adding to the uncertainty. The government's push to satisfy EU demands may be partly aimed at easing tensions before those political battles.
Meanwhile, the country faces other challenges, including a severe drought that has hit agriculture, with the Villány grape harvest expected to drop by 30%. The release of EU funds could provide a much-needed boost to the economy and infrastructure projects.
The Integrity Authority's register is a key test of whether Hungary can translate its commitments into credible action. For the EU, it is a measure of whether Budapest is serious about upholding the rule of law. For Hungarian businesses, it is a reminder that access to public contracts now comes with stricter oversight.
