Full Breakdown
Hungary’s New Prime Minister Targets Corruption, Re-engages with the EU, and Keeps Orbán-Era Policies
By Drooid · · How we work
Core Event: Anti-Corruption Drive and Asset Recovery
Less than six months after defeating Viktor Orbán’s Fidesz party, Prime Minister Péter Magyar launched a government-wide effort to hold former officials accountable for alleged corruption. His administration created the National Asset Recovery and Protection Office, a “super-authority” coordinating police, prosecutors and the tax authority. Several former officials have already been detained, and Magyar has applied for Hungary to join the European Public Prosecutor’s Office, reversing Orbán’s refusal to participate.
Background & Context
Orbán’s 16-year rule was marked by an “illiberal democracy” that weakened checks and balances and awarded EU-funded contracts to allies. The EU began withholding billions of euros in 2021 over corruption and democratic backsliding. Magyar’s centre-right, pro-European Tisza party campaigned on restoring rule of law and recovering misused assets.
Data & Statistics
- The EU announced in May that it would unlock €16.4 billion previously frozen.
- The European Court of Justice fined Hungary €200 million plus €1 million per day for non-compliance with a 2020 asylum ruling.
- Magyar estimates the fine has cost Hungary €1 billion.
- The proposed 2027 budget includes a 1 % wealth tax on net assets above 1 billion forints (? $3.1 million), affecting about 15,000 individuals and expected to raise 200 billion forints (? $617 million).
- The tax rate would rise to 1.5 % on wealth above 100 billion forints (? $308 million).
- Child allowances would be doubled to roughly $37 per month per child, and the minimum pension would increase from about $88 to $370 per month.
Official Statements & Responses
Magyar framed the reforms as necessary for Hungary to become a democratic, EU-compliant state that respects fundamental rights. The European Commission highlighted the unlocking of funds as a sign of “turning a corner” in EU-Hungary relations, and Commission President Ursula von der Leyen is scheduled to visit Budapest for the 70th anniversary of the 1956 anti-Soviet revolution.
Migration Policy Continuity
Magyar’s government will retain Orbán-era immigration measures, including the 2015 razor-wire fence along the southern border and the practice of escorting irregular migrants back to Serbia. He argued that the EU’s current political environment on migration is “completely new,” and that the fines imposed have cost Hungary “one billion euros,” a loss he deems unjust.
Relations with Ukraine and Minority Rights
The administration has shifted from Orbán’s antagonistic stance toward Kyiv, designating Russia a national security threat while demanding that Ukraine protect the right of the ethnic Hungarian minority to education in their mother tongue. Magyar opposed accelerated EU accession for Ukraine, arguing that fast-track membership would undermine the bloc’s credibility.
Fiscal Plan and Social Measures
The 2027 budget pairs tax cuts for lower-income earners with the new wealth tax, reflecting Magyar’s critique that Orbán’s policies divided society into “well-to-do… oligarchs” and “the rest.” He presented the increase in child allowances and the quadrupling of the minimum pension as acts of “humanity” and “social justice,” not as a turn toward socialism.
What’s Next
- The EU Commission President’s visit to Budapest is slated for Friday, marking a diplomatic milestone.
- Magyar expects an agreement to end the EU fine by year-end, linked to negotiations on the EU’s next seven-year budget.
- Implementation of the wealth tax and expanded social benefits is planned for the 2027 fiscal year, pending parliamentary approval.