Hungary to tighten EU procurement oversight, raise fines for violations

The European Union is preparing stricter rules for the use of its funds in public procurement. The draft legislation will focus on companies that participate in state or local contracts financed by EU money, requiring more thorough audits and documentation.

If the new rules are adopted, firms could face significantly higher penalties for breaches – up to 15% of the contract’s value for serious infractions and 3‑5% for procedural omissions. The aim is to improve transparency, reduce fraud and ensure fair competition among bidders.

Hungary is aligning its national procurement framework with these EU‑wide reforms, signalling tighter enforcement for businesses that rely on EU‑supported projects.