Hungary cancels overpriced public contracts

In late July 2026 Transport Minister Dávid Vitézy announced the cancellation of the M86‑M87 highway concession after private‑sector bids were 36‑53 % above the projected cost, a move presented as protecting the state from inflated contracts.

A week later, on 3 August 2026 Prime Minister Magyar Péter confirmed that the new TISZA government would withdraw from the Zugló office‑complex project, originally launched by the previous administration. The state had already paid more than 300 billion forints for a development that was expected to cost around 244 billion, with the final price exceeding 254 billion plus VAT. A review by the Magyar Nemzeti Vagyonkezelő and guarantees from the Hungarian Development Bank found that developer Bayer Construct Zrt. missed contractual deadlines and breached several closing conditions. The government plans to reclaim the funds, claim double the deposit, impose a 10 % penalty on the net price and seek additional damages. Recovered money will be redirected to energy, transport and health projects. Negotiations with the developer continue, with a possible lawsuit if an agreement is not reached by late summer.