EU Commission advances probe into Hungary's 35-year highway concession scheme

The European Commission has progressed its investigation into the 35-year concession agreement for Hungary's motorway network, focusing on whether the deal complies with EU procurement law. Officials argue that the contract does not transfer enough operational risk to the concessionaire, a key distinction from standard public procurement. The 35-year duration may also breach EU guidelines that restrict concessions to periods allowing reasonable cost recovery.

Recent modifications to the contract, such as adding the M1 Budapest-Bicske stretch to the concessionaire's duties, are also being reviewed. Hungary has been given a two-month window to submit a reply and corrective actions. If the Commission finds the response unsatisfactory, the matter could be escalated to the European Court of Justice. The case forms part of a broader series of EU concerns about Hungary's procurement, tax, and state-aid practices.