Public procurement (Hungary) 

Public Procurement Law is one of the cornerstones of the single European market. It aims to provide for a level playing field for all operators based in the EU in the area of public contracts where, traditionally, national preferences played (and indirectly still play) a major role.

Public procurement is an important sector of the economy. According to the European Commission's estimates, it represents 16% of EU GDP, i.e. approx. 1400 billion. The EU rules will be in effect in Hungary on 1 May 2004 following the adoption of the new act CXXIX of 2003 (the "Procurement Act"). New EU legislation, which has to be transposed into national law by 2006, seeks to further facilitate international procurement.

Accordingly, as of accession, through the application of transparent tender procedures, Hungarian companies will have the opportunity to compete on an equal footing for a share of this market. Companies that do business with public authorities are well advised to have a general understanding of the EU public procurement rules in order first to identify the full range of business opportunities open to them and then in order to comply with the rules necessary to ensure smooth contractual procedures.

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