Hungary establishes register for excluded economic operators to unlock EU funds

The Hungarian Integrity Authority is establishing a public register of economic operators excluded from public procurement due to criminal offenses. This measure is intended to prevent abuses and ensure the integrity of procurement processes, serving as a key step toward unlocking frozen European Union funds.

Under the new system, companies are barred from participating in procurement if their executive officers, board members, or beneficial owners have been subject to final court decisions for specific crimes defined by the Public Procurement Act. The authority stated that the public nature of the database is designed to prevent further misconduct rather than to stigmatize entities.

The plan includes a ‘self-cleaning’ mechanism. Economic operators may have their names removed from the register if they can demonstrate they have restored their trustworthiness. To qualify, companies must document that they have compensated for damages, cooperated fully with authorities, and implemented necessary technical and organizational measures to prevent future offenses.