Commission Report 2002 (Hungary)

• Progress since the last Regular Report
• Overall assessment
• Conclusion

Chapter 9: Transport policy

Progress since the last Regular Report

During the past year, Hungary has continued to align its legislation with the acquis and made further progress in this area, particularly in the fields of road and railway transport, as well as strengthening administrative capacity in the road and aviation sectors.

As regards Trans-European Transport Networks, 466 km road sections have been marked out as the most urgent ones for rehabilitation in the framework of the ``National Road Habilitation Programme''. The programme has been continued with a view to meeting the requirement of the increased maximum axle load of 11.5 tonnes for trucks in 2009. Progress was achieved in the framework of the motorway construction programme financed under the Széchenyi Plan. Furthermore, relief for international road traffic was provided by the reopening of the reconstructed Maria Valeria Bridge between Esztergom and Sturovo (Slovakia). In 2002, the Hungarian government is spending HUF 117 billion (around EUR 456 million) on motorway development.

In the land transport sector, some further progress was achieved in the field of road transport through the adoption of implementing legislation. Hungary completed alignment with the acquis in relation to the issuing of licenses to transport operators and admission to the occupation by introducing the professional competence criterion for road passenger transport operators. Furthermore, Hungary continued legal alignment with the acquis on the transport of dangerous goods. Hungary ratified the INTERBUS Agreement on the international occasional carriage of passengers by coach and bus in January 2002.

The General Transport Inspectorate (GTI) performs key supervisory and control functions. An increase of staff levels by 44 additional experts has been approved for 2002. In addition, the technical equipment of control units performing roadside checks will be upgraded. As part of the implementation of Community legislation on driving and resting times, 10 instructors and 300 road controllers were trained in the reporting period. In addition, training was provided by the GTI on the control of dangerous goods, on customs controls and on labour safety supervision.

On railways, progress was made with the transposition and implementation of the revised railway acquis. This was based on implementing legislation on the interoperability of high-speed railway systems and on the functions and powers of the railway authority, which provided for the new tasks of the railway authority as regards the licensing of railway undertakings and the interoperability of high-speed railway systems. Restructuring of the railways continued, and the amended railway act, which regulates conditions for access to the railway network, entered into force in January 2002. The act stipulates that the provisions for separation of passenger and freight transport within the Hungarian State Railways Co. (MAV) will enter into force in January 2003.

On inland waterways transport, legislation declaring certain natural and artificial surface waters suitable as waterways for shipping entered into force in 2002. Legislation on technical requirements for inland waterway vessels was also introduced.

As regards air transport, Hungary had already aligned its legislation with a substantial part of the aviation acquis. Further alignment took place through the adoption of implementing legislation under the Aviation Act on the licensing of ground handling services and the licensing of commercial air transport services.

The national carrier MALEV continues to undergo restructuring. MALEV is now an independent company with an independent management, and the staff has been reduced. The programme for MALEV included the complete replacement of all Tupolev aircraft by a modern fleet in 2001. Furthermore, a regional subsidiary called MALEV EXPRESS was established with new aircraft with capacity for 50 passengers. A co-operation agreement between MALEV and a European air carrier has been established.

In January 2002, the Civil Aviation Safety Organisation was established as an independent body to investigate aircraft accidents and incidents with a current staff of 10. Furthermore, an independent slot co-ordinating body was set up with a staff of 6. The Civil Aviation Authority (CAA) has started to recruit its new staff: 14 additional experts have been recruited; the recruitment of another 9 has been approved. With regard to Budapest Ferihegy International Airport, a separate joint stock company was set up in January 2002 to operate the airport independently from HungaroControl, a public central budgetary agency providing air traffic control. Based on a Government Decision, the National Airspace co-ordination Committee was set up to co-ordinate between civil needs and military airspace requirements as a reflection of the need for airspace management and Hungary`s international obligations. As regards maritime transport, Hungary has made good progress in transposing the acquis on Port State control in the reporting period. In addition, legislation on conformity assessment in this area was promulgated in the first half of 2002. As to administrative capacity, the shipping authority currently has one inspection vessel at its disposal, in Mohács.

Overall assessment

Under the new government structure, transport matters have been covered since May 2002 by the Ministry of Economic Affairs and Transport. The main supervisory institution is the General Transport Inspectorate (GTI). Although the administrative capacity of the GTI has been significantly strengthened during the period of 2001-2002 (recruitment of 420 staff), there is still a need to further strengthen this body, which oversees the activities of the road, rail, inland and maritime transport sectors. This concerns in particular the different sub-sectors of land transport.

As regards Trans-European Transport Networks, the Hungarian authorities continue to take into account the objectives and priorities of the Community guidelines on the Trans-European Transport Network (TEN-T) and the requirements on TEN financing. Special emphasis should be given to ensuring the necessary administrative capacity (both in qualitative and quantitative terms) to prepare for the significant investments that will be needed for the development of the road and rail infrastructure.

Concerning road transport, Hungary still needs to adopt legislation on standard checking procedures and on technical controls for commercial vehicles. Further efforts are still required on the implementation of social rules (admission to the occupation and checks on driving times and rest periods). An amendment also has to be made to Hungarian legislation on vehicle taxation in order to gradually approximate to the acquis in this area. As regards administrative capacity, the road police and the Road Transport General Inspectorate need to be further strengthened through additional staff and continuous training in the enforcement of social, technical and safety acquis and on the five-year development plan for establishing an internal weight-checking network.

In the railways sector, further efforts are necessary in order to allow for the implementation of the revised railway acquis. Laws on the independence of essential functions, such as the allocation of train paths and the charging for rail infrastructure use from the provision of rail transport services, as well as on the allocation of railway infrastructure capacity and the levying of charges for the use of railway infrastructure are still missing. Community legislation on the interoperability of conventional railway systems has not been transposed yet either. On administrative capacity, all the institutions needed to implement the relevant acquis are in place. The capacity of the Railway Inspectorate within the GTI should be further strengthened by increasing staff so as to be able to make progress with harmonising legislation and to handle upcoming regulatory tasks. As regards further restructuring of MAV, the Hungarian Government has not yet decided whether there is a need to separate infrastructure and commercial activities into independent companies. The infrastructure and operation accounts have already been separated. The licensing of railway undertakings, the issuing of safety certificates, the allocation of capacity and infrastructure user charges, and market supervision are to be carried out by independent organisations.

With regard to the inland waterways sector, alignment has been completed with the exception of the establishment of the Inland Waterway Fund. As for administrative capacity, the organisation of the Shipping Department within the GTI and the other authorities will have to be reinforced by new staff, and the funds required for the operation will have to be increased. Budgetary funds should be provided for this development of the administrative organisation. The purchase of a second inspection vessel is envisaged.

Concerning air transport, all administrative structures are now in place. A key question remains the financial prospects of the national carrier, MALEV, which continues to be a loss-making enterprise. New staff will have to be recruited for the Civil Aviation Authority in view of the increasing tasks of the body.

In the field of maritime transport, although Hungary is a landlocked country, alignment with the acquis on Port State control is almost complete. Transposition has to be finalised as regards legislation on passenger boats, Ro-Ro vessels, shipping vessels longer than 24 metres and the registration of persons travelling on passenger boats.

Conclusion

In its 1997 Opinion, the Commission concluded that, subject to a number of conditions, the transport sector was unlikely to pose any major problems to Hungary as regards the adoption of the acquis. It requested that the operation of the domestic road haulage market be improved, progress be made with technical checks on passenger cars and the arrangements on financial transparency and access rights in the rail sector be clarified. The Commission encouraged Hungary to devote adequate attention in the pre-accession period to making the necessary resources available to lay the foundations for the Trans-European network. The Commission added that it would also be advisable that Hungary`s administrative structures, and in particular bodies supervising areas such as safety, be rapidly reinforced.

Since the Opinion, Hungary has made steady progress in aligning legislation. Its legislation in the transport sector is now to a great extent in line with the EC acquis; the relevant framework laws are in place and only a limited amount of implementing legislation remains to be implemented. Hungary has also gradually reinforced its administrative capacity, but needs to make further efforts.

Negotiations on this chapter have been provisionally closed. Hungary has been granted transitional arrangements on maximum authorised weights and dimensions (until 31 December 2008), on vehicle taxes for vehicles exclusively engaged in domestic transport (until 31 December 2005), on road freight cabotage (for a maximum of 5 years after accession), on full access to the Trans-European Rail Freight Network (until 31 December 2006) and on noisy aircraft (until 31 December 2004). Hungary has agreed to a transitional arrangement put forward by the EU concerning the gradual reciprocal access to the cabotage market in the road haulage sector. The country is generally meeting the commitments it has made in the accession negotiations in this field.

In order to complete preparations for membership, Hungary`s efforts now need to focus on adopting the remaining legislation in the road and rail sectors and in inland waterways. As regards administrative capacity, particular attention will need to be paid to further strengthening the General Transport Inspectorate and its sub-Inspectorates, especially for the rail and road sectors.

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