Hungary tightens investment climate and public procurement rules amid EU fund scrutiny

Hungarian startup founder Balogh Petya warned that the country's investment climate has deteriorated, saying the startup ecosystem has “shrunken to the smallest in Europe.” He noted that foreign investors are increasingly avoiding Hungary because of a restrictive regulatory environment, past government interventions in deals such as the blocked sale of Sameday’s subsidiary to Austria’s Express One, and a perception that capital could be arbitrarily compelled to sell.

In parallel, the Hungarian parliament approved amendments to the 2015 Public Procurement Act, set to take effect in June 2026. The changes introduce a legal definition of “transparent economic operator,” require full disclosure of owners and managers, and tighten conflict‑of‑interest rules to exclude public officials and their relatives from bidding. A Baker McKenzie senior lawyer explained that the reform “extends the conflict‑of‑interest presumption to the actual owners and their relatives,” aiming to improve transparency and meet the EU’s Recovery and Resilience Plan milestones.