Brussels warns govt about plans to nationalise public services - paper

Budapest, August 31 (MTI) - The European Union considers nationalisation as a violation of the basic treaty and this may thwart Hungary s plans to draw public services in state ownership, daily Nepszabadsag said on Friday.

The European Commission has warned Hungary that the amendment of legislation on waste management may result in an infringement procedure. Serious objections have been raised by the EC, primarily about the plan to nationalise waste management effective 2013 and pushing private companies out of the sector without compensation, the paper said.

Nepszabadsag has acquired a letter sent by the EC which asks the government to provide a detailed explanation of the reasons justifying the amendment of the law on waste management and steps to restrain markets. It also asked for a list of the affected companies, feasibility studies on the environment and the economy, as well as detailed calculations about ways to compensate those affected.

According to Nepszabadsag, the government expects a "full-scale attack" in connection with further plans to nationalise public services.