Hungarian lawmakers approve anti-corruption measures to access EU funds

Hungarian lawmakers have approved a package of anti-corruption measures, a key step in Prime Minister Peter Magyar's reform agenda. These measures are crucial for Hungary to regain access to billions of euros in European Union funds that have been frozen due to concerns over the rule of law under the previous government.

The EU had announced in late May that it would release over 16 billion euros to Hungary, provided the country implemented necessary reforms to address corruption and uphold the rule of law. Peter Magyar, a conservative pro-European politician, ousted Viktor Orban in April and promised a "regime change" after Orban's 16-year tenure.

The anti-corruption law passed with a significant majority of 142 votes in favor, 39 against, and 3 abstentions. Magyar's Tisza party holds a two-thirds majority in parliament, allowing them to pass key legislation and constitutional amendments without opposition support. The new law enhances the legal authority of the Integrity Authority, an anti-corruption body established in late 2022 as part of earlier EU-mandated reforms that had been largely ineffective.

Under the new provisions, the Integrity Authority will oversee asset declarations, can initiate anti-corruption investigations through the judiciary, and has the power to suspend public procurement processes to safeguard EU funds. The legislation also imposes stricter transparency requirements on the ownership structures of investment funds and mandates the dissolution of public interest asset management foundations (KEKVA). Assets transferred to these foundations under the Orban government, estimated at 8.5 billion euros, will be recovered by the state. Furthermore, the law strengthens rules for annual asset declarations by politicians, introducing criminal penalties for deliberate omissions.

Magyar views the frozen EU funds, which amount to approximately 13% of Hungary's budget, as vital for revitalizing the country's struggling economy. European officials suggest these funds could become accessible by the end of the year if Hungary adheres to the reform roadmap. The parliament is also set to consider legislation reforming public media.