I.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number Related Measure (Reform or Investment) Milestone/

Target Name Qualitative indicators

(for milestones) Quantitative indicators

(for targets) Indicative timeline for completion Description of each milestone and target

Unit of measure Baseline Goal Quarter Year

160 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone Setting up of an Integrity Authority Start of activity of the Integrity Authority Q4 2022 Setting up and entry into operation, before the submission of the first payment request under the recovery and resilience plan, of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support in Hungary. It shall be guaranteed that the Integrity Authority has full independence. The Authority shall intervene in all cases where in its views competent authorities have not taken the necessary steps to prevent, detect and correct fraud, conflicts of interests, corruption and other illegalities or irregularities that may affect or seriously risk affecting the sound financial management of the European Union budget or the protection of the financial interests of the European Union. The Integrity Authority shall be a truly independent institution. The Integrity Authority and its staff shall neither seek nor take instructions from any other person or institution. The Integrity Authority shall be given an annual budget that is commensurate with its tasks and responsibilities, and it shall be responsible for managing its own budget without outside interference (as a separate chapter in the State budget). The budget allocation available for the Integrity Authority shall not be reduced during the fiscal year without the consent of the Integrity Authority. The work of the Integrity Authority shall be organised and managed by a board composed of a president and two vice-presidents. The three members of the board shall be appointed by the President of Hungary upon a nomination by the President of the State Audit Office for a non-renewable six-year term without the need for countersignature by any member of the Government based on their professional qualities, qualifications, extensive and undisputed experience and reputation (including internationally) in legal and financial matters concerning public procurement and anti-corruption, as well as their proven competence in those fields. The members of the board shall be selected following an open call for expression of interest on the basis of the binding opinion on the fulfilment of the eligibility of the candidates by an Eligibility Committee set up for this purpose. The Eligibility Committee shall be convened by the Director General of the EUTAF following an open call for expression of interest. It shall be composed of three independent persons with a background from recognised international institutions who shall have a sufficiently long, verifiable and relevant experience in the area of public procurement and/or anti-corruption activity. Members of the Eligibility Committee shall not have in the last five years: held elected political position or a political position in the Government, been employed by a political party or political foundation, or carried out voluntary or remunerated activity for such entities. Conflict of interests rules in line with the principles set out in Article 61 of Regulation (EU, Euratom) 2018/1046 shall apply to members of the eligibility committee for five years after the issuance of the binding opinion. The members of the Eligibility Committee shall publish their declaration of interests and assets and declare their absence of conflict of interest prior to starting their work in the Eligibility Committee. The members of the board shall not have in the last five years: held elected political position or a political position in the Government, been employed by a political party or political foundation, or carried out voluntary or remunerated activity for such entities. In addition, the members of the board shall not pursue any remunerated activities during their mandate working for the Integrity Authority (with the exception of academic activity and related publications), shall not have a controlling stake in a business entity, shall not be members of any political party or political foundation. A member of the board shall only be dismissed in case of a conflict of interest following their appointment or in case a final criminal judgment is issued against them for issues that relate to the work of the Integrity Authority or affect the independence and impartiality of the member concerned. The president of the Integrity Authority shall also act as an ex officio member of the Public Procurement Council and as the chair of the Anti-corruption Task Force (milestone 166). The president of the Integrity Authority shall exercise the employer’s rights over the staff of the Authority, which shall at least comprise 50 FTEs. Staff shall be selected by the board based on professional merit. The Integrity Authority shall be endowed with extensive powers, including the following: (i) the power to instruct contracting authorities to suspend a procurement procedure (for a maximum of two months); (ii) the power to request administrative investigative bodies to carry out investigations on its behalf; (iii) the power to recommend the exclusion of specific economic operators from Union funding for a certain period of time; (iv) the power to instruct relevant national authorities or bodies to carry out their supervisory or control functions, in particular as regards procedures to verify conflicts of interest declarations and suspicions in relation to the management of Union funds; (v) the right to request access to all relevant files, including on ongoing or upcoming public procurement procedures; (vi) the power to recommend contracting authorities to use a specific procedure in a specific procurement or in a category of procurement procedures; (vii) the right to initiate procedures before the relevant national authorities or bodies with the aim of establishing suspected illegalities or irregularities; (viii) the exclusive competence to verify asset declarations of persons who fall under the scope of Section 183 of Act CXXV of 2018 (including the Prime Minister, ministers, state secretaries, political director of the Prime Minister), the power to directly verify public asset declarations of all high-risk officials (including the President, members of Parliament, heads of central executive authorities, other political officials, staff of private offices of political officials, regional governors, mayors of large cities, judges, prosecutors, members of the judicial and prosecutorial governance bodies, anti-corruption investigators and senior executives of state-owned enterprises), and for non-public asset declarations of high-risk officials at least the power to request the competent bodies to carry out the verification of those declarations and obtain the result of that verification, as of 31 March 2023; (ix) the right to have access to all relevant databases and registries for the purposes of verifying asset declarations in accordance with data protection and privacy regulations; (x) the right to initiate asset declaration verification procedures upon own-initiative, complaint and suspicion; (xi) the right to request the judicial review of all decisions of authorities concerning public procurement procedures that involve any Union support and may be subject to judicial review; (xii) the right to initiate the proceedings of the Public Procurement Arbitration Board; (xiii) the right to challenge the inaction of an authority concerned in court in accordance with Section 15(2) and 25 of Act CL of 2016 on General Administrative Code. It shall be guaranteed that the Integrity Authority shall have access to all information, databases and registries required to carry out its tasks related to public procurements, cases of suspected corruption, including the verification of asset declarations, fraud and conflict of interest involving any Union support in any way. Legal provisions shall ensure that the authorities concerned by an information request or instruction of the Integrity Authority shall act within a reasonable period of time, not exceeding 60 calendar days. The Integrity Authority shall act either on its own initiative based on available information or on the basis of complaints or reports it receives. The Integrity Authority shall establish a whistle-blower interface where anonymous and confidential communication may be conducted. The Integrity Authority shall set up, update and operate a register of economic operators concerned by a final judgment of the court or a final administrative decision excluding those economic operators from public procurement procedures. The Integrity Authority shall be obliged to report suspected cases of fraud, corruption, conflict of interest or any other irregularities and illegalities to the relevant national authorities and, where applicable, to OLAF. The Integrity Authority shall have unequivocal and unlimited powers to continue to exercise its powers even in cases where the affected projects or procedures initially envisaged for Union support were subsequently withdrawn from Union support.

161 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone Report on the Integrity Risk Assessment Exercise Publication of the report Q1 2023 A comprehensive report on the Integrity Risk Assessment Exercise carried out by the Integrity Authority shall be made publicly available. This exercise shall include an evaluation of the state of play of integrity in the public procurement system in Hungary, by identifying integrity risks and systemic problems with integrity that need to be addressed, the tools available to address those risks and problems, the gaps in addressing those risks and problems as well as propose possible solutions. The exercise shall be carried out in close cooperation with relevant and knowledgeable international bodies (e.g. the OECD, World Bank) and be based on the indicators of the “IV Pillar of the Methodology to Assess Procurement Systems (MAPS), Accountability, Integrity and Transparency of the Public Procurement System”. The exercise shall also take into account the contributions of national or international civil society organisations monitoring the state of integrity in Hungary.

162 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone Start of application of the powers and competences on the verification of asset declarations by the Integrity Authority Start of application of powers and competences for the verification of asset declarations by the Integrity Authority Q1 2023 Start of application of the provisions transferring the exclusive legal responsibility and competence to verify the asset declarations of persons who fall under the scope of Section 183 of Act CXXV of 2018 to the Integrity Authority, ensuring that the Integrity Authority has the power to directly verify the public asset declarations of all high-risk officials, for non-public asset declarations of high-risk officials at least the power to request the competent bodies to carry out the verification of those declarations and obtain the result of that verification, and has direct and unlimited access to the relevant databases and registries it deems necessary to verify the veracity of the information contained in the asset declarations, as of 31 March 2023. High-risks officials shall include the President, members of Parliament, members of Government, heads of central executive authorities, other political officials, staff of private offices of political officials, regional governors, mayors of large cities, judges, prosecutors, members of the judicial and prosecutorial governance bodies, anti-corruption investigators and senior executives of state-owned enterprises. This shall include the verification of asset declaration irrespective of whether they have been verified before or not. For persons who fall under the scope of Section 183 of Act CXXV of 2018 that shall also include the following: (i) that such a verification procedure by the Integrity Authority may be initiated by the Integrity Authority upon its own-initiative, suspicion or upon complaint by anyone submitting a formal claim indicating an alleged incorrect item in an asset declaration; (ii) that the Integrity Authority has the possibility to instruct the person whose asset declaration is under verification by the Integrity Authority to present supporting data and documents regarding the content of its asset declaration; (iii) that the Integrity Authority has the possibility to request and receive data from all relevant databases and registries, including, but not limited to, the company register, the National Tax and Customs Administration, the property register and vehicle register, to verify the content of an asset declaration; (iv) that the Integrity Authority may instruct a person the content of whose asset declaration the Integrity Authority found to be incorrect to correct its asset declaration within 10 days; (v) that the failure to act upon the instruction of the Integrity Authority by the person whose asset declaration the Integrity Authority found to be incorrect or by a person who knowingly provided false data in its asset declaration shall result in automatic dismissal from her/his employment.

163 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone The annual Integrity Report for the year 2022 is made publicly available Publication of the first annual Integrity Report, for the year 2022 Q2 2023 The first annual Integrity Report of the Integrity Authority shall be made publicly available, covering the calendar year of 2022. The report shall include at least the following: (i) a fully-fledged and comprehensive analysis of the concentration of the public procurement market (as indicated by the number and value of successful tenders by economic operators); (ii) an analysis of the differences between estimated and final prices in tender procedures; (iii) an assessment of applicable public procurement rules, bottlenecks in their implementation and the related administrative practices; (iv) the identification of risk indicators; (v) an assessment of the use of framework agreements (including the distribution of contracts awarded to and agreements concluded with economic operators and the distribution of specific contracts awarded under framework agreements between economic operators); (vi) an assessment of whether and to what extent the existing control system is capable of identifying and effectively preventing, detecting and correcting risks of corruption, fraud and conflict of interest; (vii) activities related to the verification of asset declarations; (viii) recommendations on improving the systems and practices related to points (i) to (vii). The first annual report shall also include: (i) an assessment whether relevant arrangements and practices related to conflict of interest in Hungary are consistent with the Commission Notice on Guidance on the Avoidance and management of conflict of interest under the Financial Regulation (2021/C 121/01) and – if relevant – an identification of what improvements would be necessary to ensure consistency; (ii) specific indicators for the risks of fraud, corruption and conflict of interest. Appropriate procedures shall be in place ensuring that annual reports for the subsequent years are prepared and made publicly available.

164 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone The Government examines the first annual Integrity Report of the Integrity Authority and provides its responses in writing Publication of the Government’s response on the first annual Integrity Report and its detailed explanation on how it intends to address each of the findings therein Q3 2023 The Government shall examine the first annual Integrity Report and provide in writing its assessment, including a detailed explanation on how it intends to address each of the findings, including recommendations, therein. Appropriate procedures shall be in place ensuring that annual reports for the subsequent years are examined and the government’s comments are made publicly available in line with the above. The milestone shall be considered fulfilled when the government makes publicly available in writing its assessment and appropriate procedures are put in place ensuring the same procedure for all subsequent annual Integrity Reports.

165 C9.R1 Establishment of an Integrity Authority to reinforce the prevention, detection and correction of fraud, conflicts of interest and corruption as well as other illegalities and irregularities concerning the implementation of Union support Milestone Review of the asset declaration system by the Integrity Authority Publication of a report on the results of the Integrity Authority’s review of the asset declaration system Q4 2023 The Integrity Authority shall carry out a comprehensive review of the regulatory framework and the functioning of the Hungarian system of asset declarations, including its scope and verification processes and shall make its findings publicly available in a report.

166 C9.R2 Establishment of an Anti-Corruption Task Force to monitor and review the measures taken in Hungary to prevent, detect, prosecute und sanction corruption Milestone Establishment of an Anti-corruption Task Force The Anti-corruption Task Force shall be established and hold its first meeting Q4 2022 Before the submission of the first payment request under the recovery and resilience plan, an Anti-corruption Task Force shall be established and it shall hold its first meeting. The tasks of the Anti-corruption Task Force shall be the following: (a) examine the existing anti-corruption measures and elaborate proposals concerning the improvement of detection, investigation, prosecution and sanctioning of corrupt practices and other practices such as nepotism, favouritism or ‘revolving doors’ between the public and private sectors; (b) put forward proposals for measures to (i) improve corruption prevention and detection (including the effective use of all available corruption prevention and detection tools), (ii) improve the flow of information between administrative and control authorities of the state and criminal investigation authorities; (c) assess how its previous proposals were followed-up and implemented; (d) prepare an annual report and send it to the Government by 15 March each year. That report shall (i) analyse the risks and trends of corruption and corrupt practices, (ii) propose effective countermeasures and best practices for the prevention, detection and sanctioning corruption risks and corruption types, assessing their effective implementation, (iii) assess how its previous proposals were followed up and implemented in relevant legislative and non-legislative initiatives and government programmes. The applicable rules shall ensure that the Government shall discuss the report of the Anti-corruption Task Force and the proposals included therein within two months and that, if it does not decide to implement a proposal of the Anti-corruption Task Force, it shall provide the chair of the Anti-corruption Task Force with a detailed reasoning for its decision. Relevant non-governmental actors active in the field of anti-corruption shall be involved in the activities of the Anti-corruption Task Force and their full, structured and effective participation shall be ensured. It shall be ensured that such members are demonstrably independent from the government, public authorities, political parties and business interests, have proven expertise and sufficiently long verifiable professional activity in one or more of the following fields: anti-corruption, transparency, access to public information, protection of human rights, public procurement procedures, law enforcement related to those topics. Non-governmental members of the Anti-corruption Task Force shall be selected based on an open call for applications by the board of the Integrity Authority and following the binding opinion regarding the eligibility of the candidates by the eligibility committee referred to in milestone 160. That selection shall be based on an open, transparent, non-discriminatory selection process and objective criteria related to the candidates’ expertise and merit. It shall be ensured that the number of non-governmental members shall amount to 50% of the members of the Anti-corruption Task Force (the chair excluded), or, if this cannot be ensured, that the share of votes of non-governmental members is modulated to achieve 50% of the total of votes (excluding the chair). The president of the Integrity Authority (referred to in milestone 160) shall act as the chair of the Anti-corruption Task Force. At the same time, the members of the Task Force shall not interfere with the work of the Integrity Authority or have access to its work. Public authorities shall ensure that they are represented by sufficiently high-level competent persons in the Anti-corruption Task Force. The task force shall meet at least twice a year and make decisions by a simple majority of votes cast. The minutes of its meetings shall be made publicly available on the website for the Anti-corruption Task Force along with written contributions and observations sent by its members before or after its meetings requested to be attached to the minutes of the meeting. The Anti-corruption Task Force shall adopt its own rules of procedures on a proposal by its chair at its first meeting. For the purposes of the work of this Anti-corruption Task Force, corruption shall be understood as defined by Article 4(2) Directive (EU) 2017/1371, the offences under Chapter III of the United Nations Convention Against Corruption, the criminal offences set out in Chapter XXVII of Act C of 2012 on the Criminal Code as well as other practices such as nepotism, cronyism or revolving doors between the public and the private sectors. The Anti-corruption Task Force shall also take into account situations of conflicts of interest as defined by Article 61(a) of Regulation (EU, Euratom) 2018/1046 and Article 24 of Directive 2014/24/EU, as complemented by the Commission Guidance on the avoidance and management of conflicts of interest under the Financial Regulation (C/2021/2119), and by relevant national provisions. The milestone shall be reached when the Anti-corruption Task Force is established in line with the above requirements, it holds its first meeting and the minutes of that meeting are published on the website for the Anti-corruption Task Force.

167 C9.R2 Establishment of an Anti-Corruption Task Force to monitor and review the measures taken in Hungary to prevent, detect, prosecute und sanction corruption Milestone The annual analysis of the Anti-corruption Task Force for the year 2022 is publicly available Publication of the first annual report of the Anti-corruption Task Force for the year 2022 Q1 2023 The Anti-corruption Task Force shall operate as specified in milestone 166 and shall adopt and make publicly available its first annual report along with the shadow report of non-governmental actors that are members of the Anti-corruption Task Force if such a report is prepared, covering the 2022 calendar year. That report shall also include the comments and recommendations of the Anti-corruption Task Force on the draft National Anti-Corruption Strategy and Action plan (milestone 178). Appropriate procedures shall be in place ensuring that annual reports for the subsequent years are prepared and made publicly available.

168 C9.R2 Establishment of an Anti-Corruption Task Force to monitor and review the measures taken in Hungary to prevent, detect, prosecute und sanction corruption Milestone The Government examines the first report of the Task Force Publication of the Government’s response on the first report of the Task Force Q2 2023 The government shall examine and discuss the first report of the Anti-corruption Task Force and provide its comments – including a detailed reasoning as regards each proposal from the Anti-corruption Task Force it decided not to implement – to the Anti-corruption Task Force. The milestone is met once the list of measures taken and to be taken (with an indication of the envisaged timeframe for measures not yet taken) by the government on the basis of the proposals of the Anti-corruption Task Force, and the detailed reasons of the government for each of those proposals of the Task Force it decided not to implement, are made publicly available on both the government portal and the website of the Integrity Authority. Appropriate procedures shall be in place ensuring that annual reports for the subsequent years are examined and the government’s comments are made publicly available in line with the above.

169 C9.R3 Introduction of a specific procedure in the case of special crimes related to the exercise of public authority or the management of public property (‘judicial review’) Milestone Introduction of a specific procedure in the case of special crimes related to the exercise of public authority or the management of public property Provision in the amendment of Act XC of 2017 on the Code of Criminal Procedure indicating entry into force and start of application Q4 2022 Before the submission of the first payment request under the recovery and resilience plan, an amendment of Act XC of 2017 on the Code of Criminal Procedure shall enter into force which shall be applicable as of 1 January 2023, also to (non time-barred) criminal offences committed before that date, following an ex ante review by the Constitutional Court, that shall: - establish a procedure concerning corruption and corruption-related practices as defined in Article 4(2) of Directive (EU) 2017/1371 and in Chapter III of the United Nations Convention Against Corruption (i.e. all cases of bribery involving public officials as well as other cases of bribery with the exception of petty crimes, abuse of office with the exception of petty crimes, the aggravated cases of budget fraud, failure to comply with the supervisory or control obligation related to budget fraud, agreement restricting competition in a public procurement and concession procedure, more serious crimes against property – provided that the criminal offence is committed concerning national assets or assets managed by a public interest asset management foundation performing public duty or damages such assets. It shall be available for participation in a criminal organisation and money laundering if committed in relation to the above-mentioned crimes); - establish judicial review of the decision of the prosecution service or the investigating authority to dismiss a crime report or terminate the criminal proceedings by the investigating judge of the Buda Central District Court who shall have the authority to order the commencement or the continuation of criminal proceedings. Eventually following the motion for revision, if the decision to dismiss a crime report or terminate the criminal proceedings was set aside by the investigating judge, in case of a repeated termination of the procedure the possibility to file an indictment to the court of law shall be provided. The motion for revision shall have suspensory effect on coercive measures affecting assets. Following a repeated motion for revision, the investigating judge shall establish whether there is a person who can reasonably be suspected of having committed a crime. In that case, the procedure shall open the right to file an indictment to the competent court which shall decide on the merits of the case after having heard evidence. In cases where a motion for prosecution may be filed, a preliminary examination of the ground for the motion for prosecution by the trial court shall not be envisaged. The procedure may be triggered by anyone; natural persons and legal persons can file motions under this procedure with the exception of public authorities, however, the Integrity Authority (see milestone 160) shall have the right to file a motion for revision and a repeated motion for revision. The aggrieved party and the party reporting a crime shall have a privileged procedural position, with other parties having the possibility to trigger the procedure, following the publication of the pseudonymised decision not to open or to terminate the investigation, if the aggrieved party or the party reporting a crime has not done so. Legal representation shall be mandatory for all parties. The legal representative shall communicate by electronic means and the signature of the party shall not be required for acts within the procedure. The party filing a motion for prosecution shall not be obliged to appear in court in person. The Prosecutor General shall not have the possibility to lodge with the Kúria an extraordinary legal remedy on the ground of legality against judicial decisions handed down under the new procedure. The existence of a decision dismissing a crime report or a decision terminating the proceedings, adopted before 1 January 2023 (related to crimes which are not time-barred due to the statute of limitations) shall not remove the obligation of the investigating authority or the prosecution service to adopt a new decision on the crime report under Section 379 of the Criminal Procedure Code, which decision may be subject to a motion for revision under the new procedure. All courts in Hungary hearing civil, administrative and criminal cases, including those relevant for the protection of the financial interests of the Union, shall comply with the requirements of independence, impartiality and being established by law in accordance with Article 19(1) of the Treaty on European Union and the relevant EU acquis. In addition, by 31 December 2022 a) the implementing regulations necessary for the application of the amendment shall enter into force, and b) the Buda Central District Court shall be allocated additional posts for at least two judges and two legal secretaries.

170 C9.R3 Introduction of a specific procedure in the case of special crimes related to the exercise of public authority or the management of public property (‘judicial review’) Milestone Review of the specific procedure in the case of special crimes related to the exercise of public authority or the management of public property The Government adopts its report on the review of the functioning of the special procedure Q4 2023 The Government shall carry out a comprehensive review of the functioning of the specific procedure set out in milestone 169 and present its findings in a report, including an assessment and specific statistical data on cases and reviews conducted compared to other high-level cases investigated where no review took place. The review shall also indicate explicitly if legislative changes to the procedure are considered necessary and indicate the envisaged timeframe for these.

171 C9.R4 Strengthening rules related to asset declarations Milestone Entry into force of legislative amendments extending the personal and material scope of asset declarations, while ensuring frequent disclosure Provision in the legislative amendments indicating their entry into force and start of application Q4 2022 Before the submission of the first payment request under the recovery and resilience plan, legislative amendments shall enter into force and start being applied ensuring that (i) persons entrusted with senior political functions under Sections 183 and 184 of Act CXXV of 2018 on government administration and their relatives living in the same household with the persons concerned, as well as members of the National Assembly and their relatives living in the same household as the members concerned shall submit asset declarations for the first time under the new asset declaration rules by 31 January 2023 relating to the state on 31 December 2022; (ii) all individuals falling under the personal scope in point (i) shall be obliged to declare: revenues, real estate properties, other valuable properties (such as vehicles, vessels, valuable antiques, work of art, etc.), savings in bank deposits and cash, assets in stocks, securities and private equity funds, life insurance policies, trusts, and beneficial ownership of enterprises; (iii) that asset declarations shall be filed upon taking up duties, then annually thereafter and at the time of leaving the duties concerned.

172 C9.R4 Strengthening rules related to asset declarations Milestone Setting up of a new system for the electronic submission of asset declarations in digital format and a public database for asset declarations Full functionality, start of operation and complete scope of asset declarations made available in a new electronic asset declaration system Q1 2023 A new system shall be fully functional and operational, where asset declarations shall be filed electronically in a digital format. The government shall also set up and make available to the public, free-of-charge and without registration, a searchable database of asset declarations filed by persons entrusted with senior political functions under Sections 183 and 184 of Act CXXV of 2018 on government administration and members of the National Assembly.

173 C9.R4 Strengthening rules related to asset declarations Milestone Introduction of effective administrative and criminal sanctions concerning the serious violations of asset declaration obligations Start of application of the new sanctions regime concerning serious violations of asset declaration obligations Q3 2023 The specific action in the National Anti-corruption Strategy and Action Plan (milestone 178) on introducing an effective, proportionate and sufficiently dissuasive sanctioning regime (including both criminal and administrative sanctions) concerning serious violations related to the obligations of persons subject to the rules on asset declarations shall be completed and the related sanctions regime shall start being applied.

174 C9.R5 Ensuring the transparency of the use of public resources by public interest asset management foundations Milestone Entry into force of an act ensuring effective oversight on how public interest asset management foundations performing public interest activity and legal persons established or maintained by them make use of Union support Provision in the legislative act indicating the entry into force Q4 2022 Entry into force before the submission of the first payment request under the recovery and resilience plan of dedicated legislative amendments that shall: (i) explicitly designate public interest asset management foundations performing public interest activity and the legal persons established or maintained by them as contracting authorities within the meaning of Section 5 of Act CXLIII of 2005 on public procurement; (ii) ensure that public interest asset management foundations performing public interest activity and legal persons established or maintained by them as well as their staff, including the chairs and members of their boards and their supervisory boards, involved in the implementation of Union support in any capacity (either as final recipients, beneficiaries or intermediaries) shall be subject to the same requirements as those applicable for public entities and the legal entities managed by them in the Hungarian legislation concerning access to public information and audit and controls – including related to conflict of interest rules – in relation to their involvement in Union support; and (iii) ensure the full compliance of rules applicable to all individuals holding office or being employed by public interest asset management foundations performing public interest activity and the legal persons established or maintained by them with the provisions of Article 61 of Regulation (EU, Euratom) 2018/1046 and the instructions and practice set out in the Commission Notice on Guidance on the avoidance and management of conflict of interest under the Financial Regulation (2021/C 121/01) irrespective of their other activities and functions, including in the Hungarian government.

175 C9.R6 Enhancing the transparency of public spending Milestone Entry into force of a legislative act ensuring enhanced transparency of public spending Entry into force of a legislative act ensuring enhanced transparency of public spending Q4 2022 Entry into force before the submission of the first payment request under the recovery and resilience plan of a legislative act setting out an obligation for all public bodies to proactively publish a pre-defined set of information on the use of public funds into a central register. The information shall be made available in a central register, which shall also provide information on sub-contractors, in line with the relevant methodology provided under milestone 197. The central register shall include unique identifiers of contracts in the Electronic Public Procurement System (EPS) (milestone 197) to allow data requesters to find related information on public procurement procedures in the EPS. The legislative act shall also establish clear procedures and rules for the publication of such data, including the deadline for and the form of publication. The sets of data to be uploaded shall be relevant, correct and defined on the basis of the principles of transparency and proportionality, and in accordance with applicable Union law. The minimum set of data to be uploaded in the central register shall include: (i) all data for which publication is already compulsory for transparency purposes, including the data published in the State aid transparency register; (ii) the form of public spending including its legal basis; (iii) the recipient’s full legal name (for a legal person) or the recipient’s first and last name (for natural persons); (iv) the value of the public spending; (v) whether the recipient is a natural or a legal person; (vi) a unique identifier for legal persons (VAT identification number or tax identification number where available or another unique identifier established at national level); (vii) contract details relating to the spending of public funds, including their nature and purpose (type of contract used, type of tender procedure used, contract value, date of signature, duration of contract, objective to be achieved, deliverable to be delivered under the contract); (viii) tender documentation relating to the spending of public funds, including their nature and purpose (estimated value, type of public procurement procedure, date of tendering, number of offers submitted, name of tenderers); (ix) the name of service providers, including the name of subcontractors, suppliers, and capacity providers, in a free text format for historical data, and in a format processable by machine means for future public procurements; (x) the intended share of subcontractors if available, both for past and future public procurements; (xi) the public body responsible; (xii) the date when the funds were disbursed. The legislative act shall indicate that, in addition to the above, information indicating if the public funds involve (fully or partially) Union support above the national public procurement threshold shall also be made available in the central register. The legislative act shall also indicate that for procurement procedures started after 31 March 2023, such information shall be included in the register also for procedures involving Union support not exceeding the national public procurement thresholds. The legislative act shall ensure that data sets published in the central register shall be published in an open, interoperable and machine-readable format, which allows bulk download and data to be sorted, searched, extracted, compared and reused. It shall also indicate that access to the data shall be provided free of any charge and without the need to register. The legislative act shall include an obligation that public bodies update the data in the central register at least every two months (except for data directly available in the EPS which shall be updated in line with the frequency applicable to the EPS contract award notice database). Information concerning proof of performance and invoices shall continue to be made available upon requests for access to public information. The legislative framework shall ensure that the Government supervises the compliance with and enforces the obligations set out in the above legislative act and ensure that public bodies comply with their obligation to upload all relevant data in full and in a timely manner in the register.

176 C9.R6 Enhancing the transparency of public spending Milestone The central register set up under the remedial measures in the conditionality procedure is fully operational and the full set of information required is available in it Relevant public authorities have uploaded all required data in the central register and the central register is available to the public Q1 2023 The central register, with the features described under milestone 175 shall be fully operational, and the full set of information under milestone 175 shall be uploaded (including for information indicating if the public funds involve (fully or partially) Union support for procurements below and above national public procurement thresholds) and it is ensured that it shall continue to be uploaded. To meet this requirement, the relevant public bodies shall be provided with the development of the application required for data provision and the applicable template for data provision, the public bodies concerned shall be provided with information on the data to disclose. The first provision of data shall take place continuously from the start of operation of the application. The milestone shall be considered fulfilled when the public authorities have uploaded all relevant data as provided in milestone 175 in full in the central register, and the central register is accessible to the public with all the functionalities described in milestone 175.

177 C9.R7 Development and implementation of a National Anti-corruption strategy and action plan Milestone Strengthening the anti-corruption framework in Hungary by implementing concrete actions under the National Anti-Corruption Strategy and a related Action plan covering the period 2020-2022 Implementation of specific actions under the National Anti-Corruption Strategy and related Action plan covering 2020-2022 by the Government Q1 2023 The Government shall fully implement actions no. 1, 2, 3, 4, 6a, 6b, 7a, 7b, 10, 12, 13, 14, 15, 16, 17 and 18 stemming from the Government Decision 1328/2020 (VI. 19.).

178 C9.R7 Development and implementation of a National Anti-corruption strategy and action plan Milestone Strengthening the anti-corruption framework in Hungary by putting in place a new National Anti-Corruption Strategy and a related Action plan Adoption and start of implementation of the new National Anti-Corruption Strategy and related Action plan by the Government Q2 2023 The Government shall adopt a new National Anti-Corruption Strategy and a related Action plan including actions which shall be implemented in the period between 1 July 2023 and 31 December 2025 and which shall be prepared in dialogue with relevant stakeholders. The Strategy and the Action plan shall be prepared with the involvement of the Anti-Corruption Task Force, established in accordance with milestone 166, on the basis of policy advice from the OECD, following extensive consultations with national and international stakeholders, including the Commission and GRECO and in dialogue with stakeholders on the incorporation of their recommendations. The National Anti-Corruption Strategy shall build on and be consistent with the strategy under milestone 220. Its main priority shall be to effectively improve the mechanisms ensuring the prevention, detection and correction of fraud and corruption (including in the public procurement system) and to strengthen the system of how the risks of conflicts of interest are addressed. It shall give particular attention to strengthening the institutional and normative framework for the fight against high-level corruption through enhancing the transparency of the work of public bodies (including on senior political level). It shall ensure a coherent implementation of anti-fraud and anti-corruption measures for both national and Union financial support. The Action plan shall include at least the following dedicated actions: (i) strengthening the repression of corruption; (ii) strengthening administrative control procedures independent from investigations by law enforcement authorities (including the verification, control and sanctioning mechanisms) related to asset declarations; (iii) developing efficient internal mechanisms to promote and raise awareness of integrity matters in the government (including by general training for all staff and confidential counselling for senior executive and political level; (iv) reviewing the application of the Code of Professional Ethics by the Hungarian Government Official Corps as well as practices of local governments to identify and promote best practices regarding contacts with lobbyists and preventing conflict of interest; (v) adopting, making publicly available and start applying a code of conduct for persons with top executive functions (as defined by GRECO), providing clear guidance on integrity matters (including in relation to a) contact with lobbyists, b) post-employment restrictions [addressing the practice of “revolving doors” between positions in the public and private sectors] and c) relatives’ employment and the promotion for employment [nepotism]); (vi) with an immediate deadline for implementation of any residual actions stemming from the Government Decision 1328/2020 (VI. 19.) not implemented by 30 June 2023. Point (ii) above shall include specific actions to introduce an effective, proportionate and sufficiently dissuasive sanctioning regime (including both criminal and administrative sanctions) concerning serious violations related to the obligations of persons subject to the rules on asset declarations. The milestone shall be considered fulfilled once the Government adopts and makes publicly available the strategy and the action plan following the consideration of the recommendations of the Anti-Corruption Task Force on Corruption Prevention (milestone 166) based on a draft made available to it in advance.

179 C9.R7 Development and implementation of a National Anti-corruption strategy and action plan Milestone Strengthening the anti-corruption framework in Hungary through assessing the effective implementation of the implementation of the actions of the new National Anti-Corruption Strategy and the related Action plan Adoption and publication of a report on the implementation of the actions in the Action plan Q1 2026 The Government shall adopt and make publicly available a report assessing the implementation of the new National Anti-Corruption Strategy and the actions envisaged under the Action plan.

180 C9.R8 Upgrading the cooperation systems of the prosecution service to tackle corruption practices. Milestone Setting up of a new IT system for the handling of sensitive documents of the prosecution service The new IT system for the handling of sensitive documents, in line with the descriptions of the system, is fully functional and operational and the prosecution service has started using it Q2 2024 Based on a detailed system description, a new IT system for the handling of sensitive documents supporting and facilitating the administrative work and information exchange of at least seven organisational units involved in prosecutorial investigations shall be set up. The milestone shall be considered fulfilled once, following the necessary trial runs of the IT system and the training for the necessary staff, the system is fully functional and operational and it is activated (i.e. the seven organisational units involved in prosecutorial investigations have started using it).

181 C9.R8 Upgrading the cooperation systems of the prosecution service to tackle corruption practices. Milestone Setting up of a new IT system for the handling of case files of the prosecution service The new IT system for the handling of case files, in line with the descriptions of the system, is fully functional and operational and the prosecution service has started using it Q4 2025 Based on detailed system description, a new IT system for the handling of case files supporting and facilitating the administrative work and information exchange of at least seven organisational units involved in prosecutorial investigations shall be set up. The milestone shall be considered fulfilled once, following the necessary trial runs of the IT system and the training for the necessary staff, the system is fully functional and operational and it is activated (i.e. the seven organisational units involved in prosecutorial investigations have started using it).





182 C9.R9 Awareness-raising for the eradication of gratuity payments in the healthcare sector Milestone Launch of an awareness-raising campaign on the acceptability of gratuity payments in healthcare The contract with the contractor implementing the public awareness-raising campaign is signed and the campaign has started Q4 2022 A detailed campaign programme shall be drawn up to ensure that the awareness-raising campaign on the acceptability of gratuity payments in healthcare is effective and reaches the majority of the citizens. The detailed campaign programme shall be adopted and the contract for the implementation of that campaign programme with the implementing contractor shall be signed by the National Protective Service. The National Protective Service officially shall announce the launch of the awareness-raising campaign.

183 C9.R9 Awareness-raising for the eradication of gratuity payments in the healthcare sector Milestone Interim assessment of the first results of the awareness-raising campaign on the acceptability of gratuity payments in healthcare Finalisation of an interim assessment of the first results of the awareness-raising campaign Q3 2023 Drawing up and adoption of an interim assessment report of the first results of the awareness-raising campaign identifying the lessons learnt, the number of citizens reached, the change in citizens’ perception on the acceptability of gratuity payments in healthcare compared to the situation before the launch of the awareness-raising campaign.

184 C9.R9 Awareness-raising for the eradication of gratuity payments in the healthcare sector Target Number of citizens reached by the completed awareness-raising campaign Number 0 5 000 000 Q4 2024 The target shall be considered fulfilled when the final campaign report is accepted by the National Protective Service and its main results are made publicly available, including the number of citizens reached (at least 5 000 000) by the campaign as validated by an independent survey and set out in the accepted campaign report, which shall also describe the campaign tools used, the target groups reached and an analysis of the change of attitude among citizens as a result of the awareness-raising campaign on the eradication of bribery in the field of health.

185 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from Union support shall not exceed 15 % % 16 15 Q1 2023 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2022 and at least 31 December 2022 with single bids, for procurements financed at least partially from Union support is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

186 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from national resources shall not exceed 32% % 36 32 Q1 2023 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2022 and at least 31 December 2022 with single bids for procurements financed exclusively from national resources is below 32%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 32%.

187 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from Union support shall not exceed 15% % 15 15 Q1 2024 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2023 and 31 December 2023 with single bids for procurements, at least partially financed from Union support is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

188 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from national resources shall not exceed 24% % 32 24 Q1 2024 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2023 and 31 December 2023 with single bids for procurements financed exclusively from national resources is below 24%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 24%.

189 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from Union support shall not exceed 15 % % 15 15 Q1 2025 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2024 and 31 December 2024 with single bids for procurements at least partially financed from Union support is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

190 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from national resources shall not exceed 15% % 24 15 Q1 2025 The share of public procurement tender procedures – covering public procurement procedures both above and below the EU public procurement thresholds – closed between 1 January 2024 and 31 December 2024 with single bids for procurements financed exclusively from national resources is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

191 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from Union support shall not exceed 15 % % 15 15 Q1 2026 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2025 and 31 December 2025 with single bids for procurements at least partially financed from Union support is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

192 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from national resources shall not exceed 15% % 15 15 Q1 2026 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2025 and 31 December 2025 with single bids for procurements financed exclusively from national resources is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

193 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from Union support shall not exceed 15 % % 15 15 Q2 2026 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2026 and 31 March 2026 with single bids for procurements at least partially financed from Union support is below 15%, measured in accordance with the Single Market Scoreboard methodology. An unqualified audit report by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

194 C9.R10 Reducing the share of single-bid public procurement procedures Target The share of tender procedures with single bids for procurements financed from national resources shall not exceed 15% % 15 15 Q2 2026 The share of public procurement tender procedures – covering public procurement procedures with an estimated value both above and below the EU public procurement thresholds – closed between 1 January 2026 and 31 March 2026 with single bids for procurements financed exclusively from national resources is below 15%, measured in accordance with the Single Market Scoreboard methodology. A final audit report with an unqualified audit opinion by EUTAF shall confirm that the share of single bids – calculated in line with the above methodology – is below 15%.

195 C9.R10 Reducing the share of single-bid public procurement procedures Milestone Setting up of a monitoring and reporting tool (“single-bid reporting tool”) to monitor and report on public procurements closed with single-bids financed from Union support or from national resources in accordance with the Single Market Scoreboard methodology The monitoring and reporting tool is fully functional and operational and its functionalities are verified to be in accordance with the methodology of the Single Market Scoreboard Q3 2022 Before the submission of the first payment request under the Recovery and Resilience Plan, the ministry responsible for the public procurement system shall develop a new monitoring and reporting tool (“single-bid reporting tool”) for separately measuring the share of procurement tender procedures closed with single bids – with an estimated value both above and below the EU public procurement thresholds – financed either from Union support or from national resources, or both, in accordance with the Single Market Scoreboard methodology. The milestone shall be considered fulfilled when a final audit report with an unqualified audit opinion by the audit authority (EUTAF) confirms that the monitoring and reporting tool is fully functional and operational, its functionalities are in accordance with the methodology of the Single Market Scoreboard and that data (with the exception of geographical indications) in the system used for the purposes of monitoring and reporting is accurate and complete, including for baseline values.

196 C9.R10 Reducing the share of single-bid public procurement procedures Milestone First report based on the “single-bid reporting tool” is made available The first report based on information from the single reporting tool is made publicly available Q1 2023 The first written report based on information from the single reporting tool (set up and operated in accordance with milestone 195), including absolute figures and shares, geographical indications and identification of services and products, shall be prepared by the ministry responsible for public procurement and shall be made publicly available on the EPS website. The report shall also confirm that the single reporting tool was updated to include also data on geographical indications and those functionalities are fully functional and operational and available to the public. Appropriate procedures shall be in place ensuring that annual reports for the subsequent years based on information from the single reporting tool are prepared and made publicly available.

197 C9.R11 Development of the Electronic Public Procurement System (EPS) to increase transparency Milestone The EPS functions allowing the structured search and bulk export of contract award notice data are available to the public The EPS upgraded with the new functionalities is fully operational and accessible by the public. Q3 2022 The functions of the Electronic Public Procurement System (EPS) allowing the structured, machine-readable search (including by Boolean search operators) and bulk export of all contract award notice data with company identification numbers (including the names of each individual member of consortia and – in a free text format – also the names of sub-contractors) shall be made fully functional and operational before the submission of the first payment request under the recovery and resilience plan. Those search and export functions of the EPS shall allow for the gathering, filtering and comparison of data across contract award notices and related to different public procurement subject matters covering information from different types of contract award notices. A regularly updated (at least quarterly) database shall be created and published in the EPS, containing information on all contract award notices of public procurement procedures in a structured form, which shall be fit to be processed by machine means. All economic operators in the database, including members of consortia, shall be identifiable by a unique identifier (tax number). The database shall be made available to the public. The published database shall be accessible and downloadable by anyone from the EPS homepage without registration and free of charge. The milestone shall be considered fulfilled when, following a trial run, the new functions are activated and the data is available and accessible to the public through the new functions on the EPS homepage.

198 C9.R11 Development of the Electronic Public Procurement System (EPS) to increase transparency Milestone The EPS functions allowing the structured search and bulk export of all data related to subcontractors is available to the public The EPS upgraded with the new functionality allowing the bulk export of all information related to subcontractors is fully operational and accessible by the public. Q4 2022 The functions of the EPS allowing the bulk export and search possibility of all information related to sub-contractors is fully functioning and operational before the submission of the first payment request under the recovery and resilience plan. The milestone is reached once, following a trial run, the new function is activated and the data is available and accessible to the public through the new functions on the EPS homepage.

199 C9.R11 Development of the Electronic Public Procurement System (EPS) to increase transparency Milestone The EPS functions allowing the structured search and bulk export of contract award notice data from 1 January 2014 are available to the public All data related to contract award notices from 1 January 2014 are made available for search and bulk export in the EPS system Q1 2023 All data referred to in milestone 197 related to contract award notices retroactively from 1 January 2014 shall be made available for search and bulk export, and accessible to the public, in the EPS, in line with the criteria set out in milestone 197 and 198. The milestone shall be considered fulfilled when the related data is available and accessible to the public on the EPS homepage.

200 C9.R12 Performance measurement framework for public procurements Milestone Setting up of a performance measurement framework of public procurements Adoption of a Government Decision on the setting up of a performance measurement framework assessing the efficiency and cost effectiveness of public procurements and the reasons for limited competition in the sectors most affected by low level of competition Q3 2022 Adoption of a Government Decision before the submission of the first payment request under the recovery and resilience plan setting up a performance measurement framework to assess the efficiency and cost-effectiveness of public procurements with the effective involvement of independent non-governmental organisations and independent public procurement experts. The Decision shall establish at least (i) the selection criteria for the involvement of independent non-governmental organisations, which shall be the same as the ones set out under milestone 201; (ii) the selection criteria for independent public procurement experts; (iii) the respective tasks and roles of the selected non-governmental organisations and of the independent public procurement experts; (iv) a commitment for the annual publication of the results of the performance measurement framework; (v) minimum requirements concerning the content of the performance measurement framework.

201 C9.R12 Performance measurement framework for public procurements Milestone Entry into operation of a performance measurement framework of public procurements Entry into operation of a performance measurement framework assessing the efficiency and cost effectiveness of public procurements and the reasons for limited competition in the sectors most affected by low level of competition Q4 2022 Entry into operation before the submission of the first payment request under the recovery and resilience plan of a performance measurement framework that shall be developed with the purpose to be used regularly, with the involvement of independent non-governmental organisations and independent public procurement experts to assess the efficiency, cost effectiveness of public procurements and the possible reasons for and effects of public procurement procedures resulting in single bids. The performance measurement framework shall enable in particular the annual analysis of (i) the level of unsuccessful public procurement processes and their reasons, (ii) the share (measured by reference to both number and value) of contracts that are entirely cancelled during contract execution, (iii) the share of occurrence of delays in contract completion, (iv) the share of occurrence of cost overruns (including their proportion and volume), (v) the share of awarded procurement contracts in which the whole life-cycle or life-cycle costing is explicitly taken into consideration, (vi) the share of successful participation of micro- and small enterprises in public procurements, considered across sectors and per sector concerned (based on CPV divisions and groups), (vii) the value of public procurement procedures with single bids financed from national resources and from Union support separately and/or both and how that value compares to the total value of public procurement procedures financed from national resources and Union support separately and/or both. The analysis shall be carried out by the responsible department of the ministry in charge of public procurement with the full and effective involvement of selected independent non-governmental organisations and independent public procurement experts. The result of that analysis shall be made publicly available by 28 February each year on the Electronic Public Procurement System (EPS) website. For the analysis of this and other matters of significance to the public procurement market, such as the type of public procurement procedure used, the performance measurement framework shall include the definition of relevant indicators and rely, to the extent relevant, on the data available in the single-bid reporting tool (milestone 195) and specifically analyse the services and products concerned, the sectors and contracting authorities concerned. The selection of independent non-governmental organisations shall be based on an open, transparent and non-discriminatory selection process based on objective criteria related to expertise and merit. Selection criteria shall relate to proven expertise, professional reputation and sufficiently long verifiable activity relevant to the field of public procurement, as well as independence from the influence of political parties. The milestone shall be considered fulfilled when the detailed documentation of the performance measurement framework and its annual use – in line with the above description – is accepted by the government, the related government decision entered into force and the performance measurement framework has been developed with the involvement of the selected independent non-governmental organisations and independent public procurement experts, and is fully operational.

202 C9.R12 Performance measurement framework for public procurements Milestone First annual analysis carried out under the performance measurement framework of public procurements Publication of the first annual analysis assessing the efficiency and cost-effectiveness of public procurements and the reasons for limited competition in the sectors most affected by the low level of competition for the year 2022 Q1 2023 The responsible department of the ministry in charge of public procurement shall carry out the first annual analysis in accordance with milestone 201 for the year 2022 with the effective and full involvement of selected independent non-governmental organisations and independent public procurement experts, and the results of that assessment shall be made publicly available on the Electronic Public Procurement System (EPS) website. Appropriate procedures shall be in place ensuring that annual analyses for the subsequent years are prepared and made publicly available.

203 C9.R13 Action plan for increasing the level of competition in public procurement Milestone Adoption of an action plan to increase the level of competition in public procurements Publication of the action plan adopted by the government Q1 2023 The Government shall adopt and make publicly available a comprehensive action plan to improve the level of competition in public procurement. Actions in the action plan shall be based on the following: (i) an assessment of good practices to facilitate competition in the field of public procurements (taking into account any information resulting from relevant remedial measures under Regulation (EU, Euratom) 2020/2092 and the enforcement of Government Decree 63/2022 (II. 28.)); (ii) first results of the performance measurement framework (milestone 201) and proposals drawn up based on it to facilitate competition in public procurement; and (iii) available findings, decisions and recommendations of the “Public procurement integrity reports” of the Integrity Authority (milestone 161) relevant for competition in public procurement. Actions based on point (iii) shall promote and render effective the integrity checks in public procurement. The action plan shall: (i) set out specific and measurable objectives to be achieved each year; (ii) define measures relevant to achieve the related objectives; (iii) set precise deadlines for the implementation of the measures and assign relevant indicators for each measure to monitor the progress of its implementation; (iv) identify the relevant authority or institution responsible for implementing each measure; (v) establish a monitoring mechanism to assess progress towards the achievement of the objectives in the action plan; (vi) include a specific provision to annually review the action plan and revise it as necessary; (vii) ensure that an annual state of play on the implementation of actions in the action plan or its revisions are made publicly available without delay. The content of the actions may change the legal environment and introduce changes to public procurement practices, such as standard conditions applied or contract clauses.

204 C9.R13 Action plan for increasing the level of competition in public procurement Milestone Revision of the action plan to increase the level of competition in public procurements following its first annual review First annual revision of the action plan is adopted and made publicly available Q1 2024 The Government shall adopt and make publicly available the revised action plan following the first annual review, the results of the review as well as a document setting out the state of play of the implementation of each of the measures in the action plan. The revised action plan shall indicate clearly and in detail what measures are to be taken (and by which authority) to implement the actions that have not been implemented and take into account the findings, decisions and recommendations of the Integrity Authority (where relevant to increase competition in public procurement).





205 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Milestone Launch of a training scheme for facilitating the participation of micro-, small and medium-sized enterprises in public procurement procedures Launch of the scheme Q2 2023 Launching of a training scheme with the capacity to provide free-of-charge training to at least 2 200 micro-, small and medium-sized enterprises (with a particular focus on micro- and small enterprises) based on newly developed trainings and e-learning materials. The development of the training scheme shall be coordinated by the Ministry responsible for public procurement. The trainings shall provide the most important theoretical and practical information on how micro-, small and medium-sized enterprises may successfully prepare and participate in public procurement procedures. Training materials shall cover in particular, the effective use of remedies and the specificities arising in the performance of a public contract. It shall be ensured that the number of participants in trainings from a single enterprise is limited. An online registration mechanism shall be set up for the training sessions and to access e-learning courses. It shall be ensured that participation is monitored using login data from the online system and test questions to be answered during the sessions. The Ministry responsible for public procurement shall also ensure that interested micro-, small- and medium-sized enterprises shall also be able to register for e-mail notifications about upcoming training sessions with details about the course content and registration process. It shall be ensured that (i) the participation of micro-, small and medium-sized enterprises is continuously monitored, (ii) a database on participants is kept, (iii) a follow-up mechanism is established allowing all participants to provide feedback on the efficiency and usefulness of the trainings and training materials.

206 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Target Number of micro-, small and medium-sized enterprises having received training on public procurement practices Number 0 1 000 Q1 2024 The target shall be considered fulfilled when representatives from at least 1 000 micro-, small and medium-sized enterprises have successfully completed at least one of any of the trainings or e-learning courses, as verified by the training or e-learning course logs under the training scheme in accordance with the requirements set out in milestone 205.

207 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Target Cumulative number of micro-, small and medium-sized enterprises having received training on public procurement

practices Number 1 000 2 200 Q2 2026 The target shall be considered fulfilled when representatives from at least an additional 1 200 micro-, small and medium-sized enterprises (i.e. 2 200 micro-, small and medium-sized enterprises in total) have successfully completed at least one of any of the trainings or e-learning courses, as verified by the training or e-learning course logs under the training scheme in accordance with the requirements set out in milestone 205.

208 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Milestone Evaluation of the training scheme to facilitate the participation of micro-, small and medium-sized enterprises in public procurement procedures Final evaluation report is made publicly available Q2 2026 A final evaluation report shall be made publicly available evaluating the effectiveness and efficiency of the training measure, in particular through (i) assessing the results of the training scheme, (ii) assessing the lessons learnt and how future training schemes could be improved, and (iii) evaluating the longer-term effects of the scheme on the participation in particular of micro-, and small enterprises respectively in public procurement procedures. The evaluation shall also take into account the feedback of participants of the trainings gathered through the follow-up mechanism.

209 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Milestone Setting up a support scheme for compensating the costs associated with participating in public procurements of micro-, small and medium-sized enterprises Launch of the scheme Q1 2023 A support scheme providing a lump-sum compensation – based on objective, non-discriminatory and transparent selection criteria – to be paid directly to micro-, small and medium-sized enterprises (with a particular focus on micro- and small enterprises) for their costs associated with their participation in public procurement procedures to facilitate their participation in public procurements and reduce their entry barriers shall be launched. Financial support under the support scheme shall cover, in particular, the cost of using an accredited public procurement consultant, but shall not cover all the costs of participation in a public procurement procedure borne by the respective enterprise. Only those micro-, small and medium-sized enterprises shall be eligible for the support who (i) submitted a valid bid in a public procurement procedure (i.e. tenderers that have submitted a complete tender documentation for a tender procedure, meeting both the exclusion and selection criteria) and (ii) that have not participated in another public procurement procedure in the twelve months prior to submitting the bid in the public procurement procedure. The number of applications for support from an individual enterprise shall be limited.

210 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Milestone Carrying out of a mid-term evaluation on the added value and effectiveness of the support scheme The final evaluation report for the mid-term evaluation is made publicly available Q3 2024 A mid-term evaluation report on the added value and effectiveness of the support scheme shall be made publicly available. The evaluation shall be based in particular on: (i) interest in the financial support (participation in the programme), (ii) the winning rate of micro-, small and medium-sized enterprises having participated in the programme in the public procurement procedures and (iii) feedback provided by micro-, small and medium-sized enterprises having received support. The evaluation shall also analyse in which sectors the participating enterprises are active and whether those correspond to the sectors where participation of micro-, small and medium-sized enterprises is generally low. The mid-term evaluation shall analyse whether enterprises in other sectors shall be specifically targeted with dedicated communication activities to raise awareness of the programme and whether the delivery of the programme shall be changed in view of the results of the analysis.

211 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Target Number of micro-, small and medium-sized enterprises having received lump-sum support for public procurement cost compensation Number 0 1 800 Q2 2026 The target is reached when at least 1 800 enterprises participating in public procurements as bidders have received compensation for their associated costs in the support scheme in accordance with the requirements set out in milestone 209 as proven by the official payments and accounting records of the authority managing the support scheme.

212 C9.R14 Training scheme, and support scheme, on procurement for micro-, small and medium-sized enterprises to facilitate their participation in public procurement procedures Milestone Completion of the final evaluation on the added value and effectiveness of the support scheme Final evaluation report is made publicly available Q2 2026 A final evaluation report on the added value and effectiveness of the support scheme shall be made publicly available. The evaluation shall be based in particular on (i) interest in the financial support (participation in the programme), (ii) the winning rate of micro-, small and medium-sized enterprises having participated in the support scheme in public procurement procedures and (iii) feedback provided by micro-, small and medium-sized enterprises having received support. The evaluation shall also analyse in which sectors the participating enterprises are active and whether those correspond to the sectors where participation of micro-, small and medium-sized enterprises is generally low.

213 C9.R15 Strengthening the role and powers of the National Judicial Council to counterbalance the powers of the President of the National Office for the Judiciary Milestone Entry into force of legislative amendments to strengthen the role of the National Judicial Council while safeguarding its independence Provision in the legislative amendments indicating their entry into force Q1 2023 Before the submission of the first payment request under the recovery and resilience plan, legislative amendments shall enter into force and start being applied ensuring the strengthening of the role and powers of the National Judicial Council (NJC) to effectively counterbalance the powers of the President of the National Office for the Judiciary (NOJ). The legislative amendments shall: a)establish stronger powers for the NJC so that it can effectively exercise its constitutional role in supervising the central administration of courts, while maintaining the Council’s independence based on its members being elected by judges. Regarding individual decisions, the legislative amendments shall ensure that the NJC shall give a motivated binding opinion on the following matters: (I)the annulment, by the President of the NOJ, of appointment procedures for judicial and court executive positions where there is at least one eligible candidate who has been supported by the judges of the given court; (II)the transfer of judges, including secondments, to another court by the President of the NOJ referred to in Sections 27, 27/A, 31 and 32 of Act CLXII of 2011, except for secondments to the NOJ; (III)the removal, by the President of the NOJ, of judges without their consent from the pool of judges that hear special cases, including administrative cases; (IV)the suitability of candidates for the post of President and Vice-President of the NOJ, that can be proposed by the President of the Republic or the President of the NOJ, respectively; the suitability criteria, including independence, impartiality, probity and integrity, shall be determined by the law. The legislative amendments shall ensure that the candidates found unsuitable by the NJC shall have access to an accelerated judicial review before the competent court. Regarding regulations, the legislative amendments shall ensure that the NJC shall give a motivated binding opinion on the following matters: (I)the points system for the assessment of applications for judicial posts within the legislative framework; (II)the detailed conditions for the award of bonuses and other benefits to judges and court executives; (III)the rules relating to the training system for judges; (IV)the data sheet and methods for the assessment of the workload of judges, as well as the determination of the ‘national workload for contentious and non-contentious proceedings broken down according to judicial level and case types’, (V)the number of judicial posts in each court within the framework determined in the annual budget, including the Kúria, and their departments; b)establish the right of the NJC to have access to all documents, information and data (including personal data) related to the administration of the courts. In addition, the legislative amendments shall provide that the NJC shall determine the structure of the biannual report of the President of the NOJ; c)endow the NJC with legal capacity and autonomy in disbursement of its budget, and ensure that the NJC has adequate resources, including staff and offices, to carry out its tasks in an effective manner. The legislative amendments shall also provide that, in order to carry out their tasks in the NJC, judges-members shall be entitled to be relieved from their adjudicating duties to the extent regional court (törvényszék) presidents are relieved from their adjudicating duties. The legislative amendments shall provide that judges-members of the NJC cannot be re-elected except for the next term of office, that judges-members of the NJC shall elect from among themselves the chairperson of the NJC, and that court presidents and vice-presidents as members of the NJC shall not participate in the deliberation and vote on matters relating to their administrative activities; d)establish the right for the NJC to seize the competent court and the Constitutional Court to defend its prerogatives and enforce its rights; e)establish an obligation to consult the NJC on legislative proposals affecting the justice system and the right to propose to the Government to initiate new legislation on the same matters; f)establish in the law non-discretionary rules on the designation of ad interim court presidents through a pre-set order of positions within a court as follows: (i) in the absence of a court president, the president’s competences are exercised by the vice-president; (ii) in the absence of a vice-president, the president’s competences are exercised by the head of a department of judges with the longest tenure as a judge; (iii) in the absence of a head of department, the president’s competences are exercised by the presiding judge with the longest tenure as a judge; g)prohibit the reintegration, by the President of the NOJ, of judges, following their secondment, to a court instance higher than the court in which they adjudicated before their secondment.

214 C9.R16 Strengthening judicial independence of the Supreme Court (Kúria) Milestone Entry into force of amendments to strengthen judicial independence of the Supreme Court Adopted and effective amendments to the rules on the election of the Kúria President, the case allocation scheme, and the functioning of the Kúria Q1 2023 Before the submission of the first payment request under the recovery and resilience plan: a)legislative amendments shall enter into force and start being applied, which shall amend the rules on the election of the Kúria President in order to ensure that: (i) the candidates have at least five years’ experience as a judge; (ii) the Kúria President cannot be re-elected; (iii) the NJC gives a motivated binding opinion on the suitability of the candidates for the post of Kúria President that can be proposed by the President of the Republic. The suitability criteria, including independence, impartiality, probity and integrity, shall be determined by the law. The legislative amendments shall ensure that the candidates found unsuitable by the NJC shall have access to an accelerated judicial review before the competent court; b)legislative amendments, and other amendments, to the rules on the case allocation scheme of the Kúria shall enter into force and start being applied, which shall ensure that: (i) electronically filed cases be given a case number without human intervention; (ii) cases be allocated to chambers following pre-established, objective criteria; (iii) the bench hearing the case be composed following an algorithm prescribed in advance; (iv) the parties to proceedings be able to verify on the basis of the case file whether the rules on case allocation have been duly applied; (v) the judicial council of the Kúria and the departments of judges (‘kollégium’) concerned give a binding opinion on the case allocation scheme; c)legislative amendments shall enter into force and start being applied, which shall amend the rules on the functioning of the Kúria by (I)establishing stronger powers for the judicial council of the Kúria and the departments of judges (‘kollégium’) concerned, ensuring, in particular, that they shall give a binding opinion on (a)candidates for the post of chairs and vice-chairs of departments of judges, presiding judges and the Secretary General of the Kúria; (b)secondments to the Kúria; (II)removing the possibility for members of the Constitutional Court to become judges and then be appointed to the Kúria without following the normal application procedure, (III)ensuring that the NJC gives a motivated binding opinion on the suitability of candidates for the post of Vice President of the Kúria that can be proposed by the Kúria President. The suitability criteria, including independence, impartiality, probity and integrity, shall be determined by the law. The legislative amendments shall ensure that candidates found unsuitable by the NJC shall have access to an accelerated judicial review before the competent court. (IV)ensuring that the strengthened powers of the NJC referred to in milestone 213 also apply in relation to the Kúria President when acting as appointing authority (in line with Act CLXII of 2011).

215 C9.R17 Removing obstacles to references for preliminary rulings to the Court of Justice of the European Union Milestone Entry into force of legislative amendments to remove obstacles to references for preliminary rulings to the Court of Justice of the European Union Provision in the legislative amendments indicating their entry into force Q1 2023 Before the submission of the first payment request under the recovery and resilience plan, legislative amendments shall enter into force and start being applied ensuring that: (i) Sections 666 et seq. of the Criminal Procedure Code are amended in order to remove the possibility for the Kúria to review the legality of the decision of a judge to make a preliminary reference to the Court of Justice of the European Union, and (ii) Section 490 of the Criminal Procedure Code on staying the proceedings is amended in order to remove any obstacle to a court to make a preliminary reference in line with Article 267 TFEU.

216 C9.R18 Reform regarding the review of final judgments by the Constitutional Court Milestone Entry into force of legislative amendments to remove the possibility for public authorities to challenge final decisions before the Constitutional Court Provision in the legislative amendments indicating their entry into force Q1 2023 Before the submission of the first payment request under the recovery and resilience plan, legislative amendments shall enter into force and start being applied ensuring that the possibility, introduced in 2019 by amending Section 27 of Act CLI of 2011, for public authorities to challenge before the Constitutional Court final judicial decisions, is removed.

217 C9.R19 Reinforced legal provisions setting out implementation, monitoring, and audit and control arrangements to guarantee the sound use of Union support Milestone Legal mandate for the implementation, audit and control of the recovery and resilience plan Entry into force of the Government Decree on the roles and responsibilities of bodies involved in the implementation, audit and control of the Hungarian recovery and resilience plan Q3 2022 Entry into force of the Government Decree establishing the legal mandate for the bodies involved in the implementation, audit and control of the implementation of the recovery and resilience plan in Hungary before the submission of the first payment request under the recovery and resilience plan. The decree shall at least set out the roles and responsibilities of those bodies ensuring (a) the collection and reliability of data linked to and monitoring of the achievement of milestones and targets; (b) that detailed procedures are in place for the drawing up and reliability of management declarations, audit summaries and payment requests; (c) that the necessary procedures to collect and store data on final recipients, contractors, subcontractors, and beneficial owners in accordance with Article 22 of Regulation (EU) 2021/241 establishing the Recovery and Resilience Facility are in place; (d) that rules on conflict of interest apply to all staff involved in the implementation, including acts preparatory thereto, control (including to internal and external evaluators in public procurement procedures) and audit of the Recovery and Resilience Plan and to all final recipients, contracting authorities, contractors, sub-contractors, as well as consultancy firms involved in project preparation and implementation; (e) that conflict of interest rules explicitly address situations involving family, emotional life, political or national affinity, economic interest or any other direct or indirect personal interest that may be perceived as a conflict of interest in line with Article 61 of Regulation (EU, Euratom) 2018/1046 and the related Commission Notice (‘Guidance on the avoidance and management of conflicts of interest under the Financial Regulation’ [C 121/01]); (f) that all persons under point (d) shall be obliged to issue a declaration of their absence of conflict of interest on a case by case basis if they are involved in the decision making concerning individual projects (in particular decisions on eligibility, risk assessment, selection of projects, interim and final control procedures, irregularity management, and audit-related decisions), which shall be stored for at least 5 years; (g) that the veracity of conflict of interest declarations is regularly and effectively controlled and the results of those controls are stored for at least five years; (h) that regular and effective oversight of staff in sensitive positions (such as dealing with irregularity management, controls and risk-assessment) is set out and that the regular rotation of staff in those positions is ensured based on a methodology that shall start to be applied no later than 31 March 2023; (i) that bidders shall not participate in tenders in public procurement procedures in case conflict of interest relevant to them in that specific tender is established.

218 C9.R19 Reinforced legal provisions setting out implementation, monitoring, and audit and control arrangements to guarantee the sound use of Union support Milestone Amendment of the legal provisions relating to the implementation, monitoring, control and audit of the European Structural and Investment Funds and the funds under Regulation (EU) 2021/1060 in Hungary Provision in the Government Decrees on the implementation, monitoring, control and audit of the European Structural and Investment Funds and the funds under Regulation (EU) 2021/1060 in Hungary indicating entry into force Q3 2022 Entry into force of the amendment of the Government Decrees regulating the implementation, monitoring, control and audit of the European Structural and Investment Funds under Regulation (EU) 1303/2013 and the funds under Regulation (EU) 2021/1060 in Hungary before the submission of the first payment request under the recovery and resilience plan. The amendments shall ensure at least the following: (a) introduction of rules and procedures making the prevention, detection and correction of conflict of interest more efficient; (b) that rules on conflict of interest apply to all staff involved in the implementation, including acts preparatory thereto, control (including to internal and external evaluators in public procurement procedures) and audit of the above mentioned funds and to all beneficiaries and final recipients, contracting authorities, contractors, sub-contractors, as well as consultancy firms involved in project preparation and implementation; (c) that c