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Hungary: Construction auctions may sacrifice state aid

By  |  January 23, 2014

Regulations over road construction auction bidding are threatening Hungary with a loss of more than $768 million in state aid after the European Commission found competition concerns with the rules.

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    EU authorities are reportedly concerned that the bidding rules, which have been in place since 2007, `discriminate against companies whose concrete mixers are based elsewhere in the EU. Hungary requires construction companies to have a mixing plant near the project to participate in contract bidding.

    Now, the Commission is reportedly considering withholding 25 percent of its funding for Hungary construction projects. Reports note, however, that those lost funds could be allocated to other government projects.

    Full Content: Politics.hu

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