Hungary Approves Reforms to Restore Rule of Law, Unlock EU Funds

Hungary's parliament has approved more than thirty legislative reforms, marking a significant political development aimed at restoring the rule of law and releasing approximately 16 billion euros in frozen European Union funds. This move follows the departure of Viktor Orbán from power.

The new government, led by Prime Minister Péter Magyar since May 2026, has made rapprochement with Brussels and rebuilding trust with European institutions an immediate priority. To achieve this, the government rapidly implemented a broad package of changes affecting the justice system, transparency in public finance management, anti-corruption efforts, and press freedom.

Previously, the European Commission had withheld substantial funding to Hungary during Viktor Orbán's administration, citing systematic violations of the rule of law. Concerns included the functioning of the judiciary, the transparent use of EU funds, the concentration of power, and restrictions on media freedom.

The new reforms focus on strengthening the Integrity Authority, an independent body responsible for monitoring the use of EU funds and investigating corruption. Penalties for corruption-related offenses have been tightened, and declarations of assets by politicians and public officials will undergo stricter scrutiny. Submitting false information could lead to imprisonment.

Significant changes have also been introduced in the justice system. Prosecutors can no longer ignore or bypass court decisions demanding the continuation or review of investigations. If a court deems an investigation should proceed, law enforcement and prosecutors are obligated to comply. Furthermore, institutions established by the Orbán government to manage universities and cultural organizations, which faced criticism for operating outside effective public control despite public and EU funding, have been abolished. The new legislation also addresses media, removing officials appointed by the previous government from key positions in public media and the media regulatory council, while restoring the independence of the national news agency and establishing a new oversight mechanism for public media.