Hungary’s Integrity Authority Finds Major Issues in EU Funds Oversight

This article is part of our special report EUYou – Europe is you.

The 2024 annual report of Hungary’s Integrity Authority (IH) reveals systemic shortcomings in how the government and state institutions manage European Union funds. According to the report submitted to the Hungarian Parliament, the government's practices fall short in efficiency, accountability, and transparency. The Authority emphasises it lacks the necessary legal powers and institutional cooperation to effectively fulfil its mandate.

Established in late 2022, the IH was a response to EU concerns over rule of law and corruption in Hungary. Its mission is to independently monitor the use of EU funds and combat corruption and misuse of public resources. However, the 2024 report makes clear that many of the Authority's recommendations have been ignored or only partially implemented.

In 2024, the IH launched 25 investigations and concluded 21, covering over HUF 113.5 billion in EU funds. Of these, 26 irregularity procedures were initiated, with 19 officially launched by the relevant authorities. The investigations aimed not only to detect individual misconduct but also to expose systemic risks threatening the proper use of EU resources.

The IH received 172 public reports in 2024, most concerning EU funds. These led to 14 investigations, with a handful resulting in official audits or irregularity reports. In several cases, whistleblower notices were merged due to overlapping subject matter, suggesting heightened public awareness in certain problematic areas.

The IH submitted 12 formal objections to other authorities, none of which were rejected. Courts in several cases backed the IH’s motions to initiate or continue investigations. However, the Authority criticised inadequate anonymisation in prosecutorial and police decisions, which hindered its ability to file appeals.

In public procurement, the IH filed 14 complaints, with 10 resulting in findings of legal violations. It also initiated three administrative lawsuits. Yet, limited access to key state databases, such as those of the tax office or company registry, continues to obstruct the IH’s ability to perform effective audits and asset checks.

One notable achievement was the IH’s move toward full IT independence, breaking away from the state-run NISZ and establishing its own secure infrastructure. Still, legal and technical obstacles remain, and the IH reports receiving no governmental support for necessary legislative changes.

In terms of funding, the IH used only HUF 4.08 billion of its allocated HUF 19.3 billion budget (21.16%). Most of the unused funds were returned to the central treasury. Despite this, the Authority began building its own IT systems, a project to continue in 2025.

Looking ahead, the IH aims to expose more corruption involving EU funds, reduce the social tolerance of corruption, and strengthen public trust in state institutions. It also plans to expand cooperation with domestic and international bodies, including those in public administration and education.

A key section of the report criticises Hungary’s systemic handling of EU funds. While procurement laws may meet international standards on paper, in practice, they fail to guarantee fair competition or efficient spending. The IH found persistent low competition in tenders and a lack of public confidence.

In its 2024 integrity report, the IH made 74 policy recommendations. The government fully accepted only 14, partially agreed with 16, and outright rejected 21. The rest were either referred to other authorities or left unanswered, which the IH sees as a lack of meaningful engagement with anti-corruption efforts.

Furthermore, the IH reports being excluded from administrative consultations on new legislation and only learning about relevant drafts during public consultations, weakening its role in shaping policy that directly affects its mandate.

In conclusion, the Integrity Authority warns that its effectiveness is limited by restricted legal powers and a lack of genuine institutional cooperation. Achieving its core goals—fighting corruption, protecting EU funds, and increasing trust—requires not just operational improvements but deeper legislative and structural reforms.

The report also comes amid ongoing criminal proceedings against IH president Ferenc Biró, who is under investigation for alleged misuse of funds, including the private use of a luxury vehicle leased by the IH. Biró denies all allegations, claiming the charges are politically motivated and aimed at discrediting the Authority.