ADVERTISEMENT

Report: EC fine in conflict over road tenders is about HUF 50 bln

Deals

The fine that the European Commission will levy against Hungary for the improper tendering of road work contracts is apparently HUF 45-51 billion, government friendly newspaper Magyar Idők reported today.

During a meeting between EC Commissioner for Regional Policy Corina Cretu and Hungarian Cabinet Chief János Lázár in Budapest last week, the two sides reportedly reached what Lázár said was a “favorable” offer for resolving a conflict over tendering for roadwork funded by EC grants. He explained that Hungary would pay a fine for improper tendering practices, and in exchange the EC would free up HUF 500 bln in funding, but he did not say at the time how big the fine would be.

Magyar Idők, a paper that the government often uses to release information, reported today that the fine agreed was HUF 45-51 bln, which is supposedly half of what was originally proposed. According to the paper, Deputy State Secretary for International Affairs Zsigmond Perényi said that, under the agreement, the HUF 500 billion in EU funds would be transferred to Hungary within a month and a half, once all the necessary details have been clarified.

The EC had withheld HUF 500 bln in funding for road work in Hungary, pending a probe of the way Hungary arranged tenders for EC funding. The EC said it was wrong to require that anyone bidding for roadwork had to provide a source of asphalt close to where the roadwork was being done. The agreement made last week will end the conflict, Lázár said.

ADVERTISEMENT

Czech economic confidence weakens in October Analysis

Czech economic confidence weakens in October

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.