Corruption in Hungary

Already on 1 January 2010 the new anti-corruption law shall enter into force, curtailing corruption which is getting out of hands.

Entrepreneurs who are engaged in business in Hungary do not only have to face a slowly growing economy and unpredictable economic and fiscal policy but also a high rate of corruption. Apart from the Hungarian state, mainly smaller and foreign companies have to pay the bill. But bribery, illegal price-fixing or exercising influence on the public order strongly impair economic growth.

Already last year Transparency International (TI) recorded Hungarian shortcomings in the execution of laws and also this year the worldwide Global Corruption Report states that stopping corruption cannot be successful without political engagement.

Against this background the Hungarian prime minister presented the new anti-corruption law which follows US-American guidelines and was appraised by TI and other civil organizations. Among other things it provides witness-protection programmes and the introduction of a leniency programme. A premium programme for informers providing a 10-per-cent bonus based on the imposed fine is expected to finally curtail underground economy. Additionally the independent anti-corruption authority’s position is significantly strengthened. In future it will be entitled to sentence enterprises and exclude them from tendering.