Collective Commentary about the New Package Travel Directive

846 COLLECTIVE COMMENTARY ABOUT THE NEW PACKAGE TRAVEL DIRECTIVE authority shall, in order to take the necessary measures, make arrangements with the credit institution or the insurance company at the expense of the financial security of the travel company. 10) It was proved, in practice that the regulation of financial security in Hungary, as shortly described above, serves compliance with Article 7 of EEC Directive No. 90/314 only in principle, the transposition of Article 7 was not implemented, as appropriate. 11) In practice, tour operators, almost without exception, established the amount of their financial security on the basis of the method defined in Section 8, which was equal to the percentages fixed in Section 8 in all cases (or if it was less than the minimum amount, the financial security was augmented to the minimum amount) and their contracts relating to the financial security were concluded in respect of that amount with the insurance company/financial institution. The insurance company/financial institution did not examine the truth of the amount of planned sales revenues indicated by the tour operator, as it was neither obliged, nor authorized thereto by any law. 12) Pursuant to Section 2(2)c) of the Government Decree, it is a condition of the commencement and continuation of travel activities that the financial security referred to in Section 8 of the Decree be available to the tour operator. Existence of the financial security was not a condition of the commencement and continuation of travel retailers’ activities. 13) The registration office named in Section 2(1) (HungarianTrade Licensing Office) entered the tour operator in the register after having presented the insurance policy/guarantee contract relating to financial security. The office was not obliged by any law to examine the correctness of the planned data of revenues serving to establish the amount of financial security. 14) Although it is defined in Section 10(1) for what purposes the financial security may be used, however the method of calculation indicated in Section 8(3) does not provide sufficient cover for the repayment of the total amount of money paid by passengers, because: a) the amount of financial security is established as a definite percentage of the future planned revenues established by the tour operator,