The European Commission did not decide yesterday on whether to take the next step in the infringement procedure, contrary to a radio statement by Administration Minister Tibor Navracsics that the Commission would make its case on Wednesday.

The Commission has launched inquires into the ban on the construction of shopping malls and the proposed law that would limit tobacco sales to small outlets, Index reports, adding that the cabinet may concede on these two issues.

The introduction of the Erzsebet voucher and the SZEP Szechenyi holiday card have also come under intense scrutiny as the EU fears that the schemes may be discriminative and create a state monopoly.

EU officials object to the practice of excluding foreign retailers from participating in the Erzsebet voucher scheme.

Documents obtained by Index indicate that the government is considering five possible responses, ranging from leaving the Erzsebet scheme unchanged to scrapping it altogether.

The state holiday fund and Tesco have agreed that the retailer can accept the vouchers at its 176 hypermarkets for ready-made foods from April 15."

Source: Hungary Around the Clock

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