Hungary halts Southern Railway project amid EU funding risks

The Hungarian government has halted the Southern Railway Circle project and excluded V-Híd Zrt., a company owned by Lőrinc Mészáros, from ongoing railway tenders. This decision follows notification from the European Commission that EU funding for the project would be withdrawn due to violations of public procurement rules.

The controversy stems from V-Híd's acquisition of the Kontúr Group, a company involved in the planning and preparation of the railway project's procurement. While the European Court of Auditors flagged this as a serious conflict of interest, the Hungarian Competition Authority (GVH) had previously declined to investigate the acquisition in 2021, stating there were no grounds for an inquiry.

Fidesz politicians have criticized the move, claiming the exclusion of domestic companies like V-Híd—which employs 65,000 people—is a political vendetta that clears the way for foreign multinational corporations to dominate state investments. They argue such actions threaten the stability of the Hungarian economy.