31-07-2025
European Commission challenges Hungary's 35-year motorway concession
This article is part of our special report EUYou – Europe is you .
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The Commission's position is that the 35-year contract for construction, operation, and maintenance of Hungary's motorway network did not properly transfer operational risk to the concessionaire - a key factor distinguishing concession contracts from public procurement contracts. As a result, the Commission concluded that the contract was incorrectly classified as a concession rather than a public procurement contract, potentially violating principles of equal treatment and transparency.
According to Brussels' investigations, the contract modifications also appear to violate EU regulations regarding public procurement contracts. Even if the agreement were to qualify as a concession, the Commission maintains that its duration exceeds the limits permitted by the Concession Directive. Hungary has been given two months to respond and address the identified deficiencies.
The motorway concession was conceived by the Orbán government in 2021. The winning consortium comprised several private equity funds, including Themis, Konzum, Opus Bridge, Opus New Way, Cronus, Vesta, and Via Private Equity Funds. These funds are backed by prominent pro-government business figures László Szíjj and Lőrinc Mészáros.
The bidding process, overseen by the National Concession Office under Antal Rogán's supervision, initially had three participants. An Austrian construction group was disqualified due to formal errors, leaving just two contenders. The consortium linked to government-affiliated oligarchs predictably won, with contracts signed after the 2022 elections.
Under the arrangement, the consortium pays an annual concession fee of several hundred million forints to the state, while receiving access to the annual motorway maintenance budget, which can reach HUF 200-300 billion.
Since 2023, MKIF Magyar Koncessziós Infrastruktúra Fejlesztő Zrt. has been managing motorway maintenance, replacing the state-owned ÁAK.
The concession has also limited competition in road construction tenders, as MKIF can award contracts to its own companies without competitive bidding. While the government justified the 35-year concession by citing the ability to secure financing for new motorway sections without increasing state debt, no new construction has begun, and planned projects have been cancelled.
The European Commission's assessment suggests the concession procedure was irregular, potentially rendering the current contract invalid. While the contract could be modified through dialogue, the Commission may refer the matter to the European Court of Justice if the government proves unwilling to cooperate.
