Hungary’s next PM says frozen EU funds will be paid out soon

Hungary s next PM says frozen – Péter Magyar, Hungary’s newly elected Prime Minister, has convened meetings with key European Union leaders in Brussels, marking a significant shift from the 16-year dominance of Viktor Orbán’s Fidesz party. This encounter follows the landslide victory of his Tisza party in the April 12 election, which ended the tenure of Orbán’s government. Magyar emphasized the “extremely constructive and successful” dialogue with European Commission President Ursula von der Leyen, expressing confidence that EU resources would soon be allocated to Hungary. His statement, “in one sentence, EU funds will be released shortly,” signals a proactive approach to addressing the financial constraints imposed on the country.

EU Funds and Political Reforms

The EU has withheld billions of euros in funding due to concerns over Hungary’s democratic practices and allegations of corruption under Orbán’s leadership. Magyar has pledged to unlock these frozen resources, which are critical for revitalizing the nation’s stagnant economy. His administration aims to meet the conditions set by the European Union, which include ensuring judicial independence and combating corruption. A party colleague, Márton Hajdu, outlined the requirements: “there should be no corruption, and the government should not interfere with the functioning of the courts.” These benchmarks, though straightforward, present a challenge for Magyar’s newly formed government, which must act swiftly to align with EU expectations.

Magyar’s government has already initiated efforts to restore trust with Brussels. Two days after securing electoral victory, he reached out to von der Leyen, demonstrating his intent to prioritize the release of EU funds. The European Commission’s executive body has committed to supporting Magyar’s initiatives to address these issues and reorient Hungary toward shared European values. His next step is a scheduled return to Brussels on May 25, where he plans to sign a political agreement that could pave the way for financial reconciliation.

Urgent Priorities and Economic Challenges

Magyar’s immediate focus is on accessing €10.4bn from the EU’s post-pandemic recovery fund, which faces an expiration deadline in August. This sum is vital for Hungary’s economic recovery, as the nation has experienced negligible growth over the past three years. To secure this allocation, Magyar’s government must fulfill a series of “super-milestones,” including reforms aimed at strengthening the rule of law and transparency. Additionally, he has set his sights on a further €6.3bn in cohesion funds, which were previously blocked over judicial concerns. Reversing these restrictions could provide a substantial boost to infrastructure and regional development.

Another pressing goal is the resolution of a daily €1m fine imposed on Hungary for violating EU migration rules. Magyar has outlined plans to eliminate this financial burden, highlighting the importance of harmonizing national policies with EU standards. His strategy also includes leveraging €16.1bn in low-interest defense loans, a move that could enhance Hungary’s military capabilities while easing economic pressures. These initiatives underscore the breadth of challenges facing the new administration, which must balance rapid reforms with the need for stability.

Parliamentary Majority and Political Momentum

Magyar’s Tisza party, a relatively new political force formed just over two years ago, has gained a commanding majority in the Hungarian parliament. By securing 141 seats in the 199-member National Assembly, the party now holds a “super-majority” of two-thirds, enabling it to implement sweeping constitutional changes. This legislative power is crucial for advancing reforms that have long been stalled under Orbán’s rule. The party’s swift rise to prominence, achieved in a single election cycle, reflects a growing public appetite for change.

Magyar’s ambition to transform Hungary’s relationship with the EU is evident in his outreach to European Council President António Costa, who represents the interests of the 27 member states. After their meeting, Magyar shared a social media message asserting, “Hungary was, is and will be in Europe,” a declaration that aims to reassure both domestic and international audiences of his commitment to European integration. The political shift is not merely symbolic; it carries tangible implications for Hungary’s economic and political future.

Recent developments have also bolstered Magyar’s position. Last week, the EU lifted Orbán’s veto on a €90bn loan to Ukraine, a decision that occurred during an informal summit where Orbán was absent. This move signals a thaw in relations between Hungary and the broader EU community, creating an opportunity for Magyar to redefine the country’s role in European affairs. He has already expressed interest in meeting Ukraine’s President, Volodymyr Zelensky, in Berehove—a Hungarian-majority town in southwestern Ukraine—seeking to mend ties strained by Orbán’s opposition to the war effort.

Legacy and Future Outlook

Magyar’s success in securing the prime ministership comes after a campaign that contrasted sharply with Orbán’s largely anti-EU stance. While Orbán had accused his opponent of being a “puppet of Brussels,” Magyar has positioned himself as a reformist leader determined to restore Hungary’s standing within the EU. His efforts to reconcile with European institutions may face resistance, particularly from factions that remain loyal to Orbán’s policies. However, the public’s support for his party and the EU’s willingness to engage suggest a path forward.

The upcoming swearing-in of Magyar on May 9 marks the beginning of a critical phase for Hungary. With the EU recovery fund set to expire in August, time is a key factor in his ability to deliver on promises. The urgency of his task is compounded by the need to meet the “super-milestones” outlined in Hungary’s 2022 recovery plan, which includes sweeping judicial and anti-corruption measures. If successful, these efforts could secure long-awaited financial support and reinvigorate Hungary’s economy, which has struggled for years under previous governance. Magyar’s leadership now faces the test of translating political momentum into concrete outcomes.

The EU’s response to Magyar’s initiatives has been cautiously optimistic. Von der Leyen described her discussions with the new prime minister as a “very good exchange,” indicating openness to collaboration. However, the success of these reforms will depend on Magyar’s ability to navigate Hungary’s complex political landscape and demonstrate tangible progress. As the new government moves forward, the nation’s future will hinge on its ability to meet the conditions set by Brussels while addressing domestic priorities. The coming months will be pivotal in determining whether Hungary can reclaim its place as a reliable partner within the European Union.