Book Description

Hungary was one of the first countries in Central and Eastern Europe to embark on economic transition. It has also led the region in terms of the restructuring and privatization of the infrastructure sectors—electricity, gas, and telecommunications. In fact, when negotiations over accession into the EU commenced, Hungary's institutional and structural framework was comparable to, if not ahead of, that of most EU countries. However, even an excellent process of reform provides some opportunities for further improvements, especially as new information and experience accumulate.This report: • Provides a diagnostic assessment of recent and ongoing structural and regulatory reforms in Hungary's infrastructure sectors-electricity, oil and gas, and telecommunications; • Identifies priorities for additional competitive restructuring and regulatory decontrol measures, their expected impacts, and policies designed to minimize the transition costs of deregulation and market liberalization; • Assesses the progress made toward compliance with the European Union (EU) accession requirements and identify areas that might benefit from special attention to accelerate the transition to a liberalized regime; • Identifies the major regulatory issues that need to be addressed in the medium term by the Hungarian regulatory agencies and suggest a strategy for addressing these issues. This volume will be of interest to Bank staff, policymakers, and World Bank client countries.