Three regulations on block exemptions , covering research and development, specialisation and technology transfer agreements, have recently have been adopted. The Hungarian Competition Office has a good enforcement record although it has, to date, mainly intervened to resolve minor competition cases. Efforts to increase transparency in state aid schemes have also been made, as demonstrated by the annual reports submitted by the Hungarian authorities to the Commission in 1998. These reports closely follow the methodology of the Commission's state aid surveys. Some state aid schemes have been aligned with Community rules, but further adjustments will be necessary to ensure compliance.
Further efforts are therefore necessary to ensure effective implementation of state aid rules.
Special attention should be given to establishing the legal basis for the scrutiny of aid granted to sensitive sectors. The inventory of existing aid should be made more comprehensive by including information on all indirect aid measures such as fiscal aid. Undertakings with special or exclusive rights in Hungary exist in the fields of telecommunications, postal services, energy, transport and water management and for the operation of Ferhegy Airport and Csepel Port, etc. The relevant Community criteria on special or exclusive rights are respected to a large extent, but no progress has been made in the area since the 1998 Report appeared.