The new Hungarian government “has engaged in intense reforms to restore the rule of law”, the European Commission said in its 2026 rule of law report published on Friday.

“Following continued dialogue with the Commission under the Recovery and Resilience Plan and the general regime of conditionality, several legislative reforms were advanced. Further constitutional amendments are being considered regarding the justice system, the anti-corruption framework and institutional issues related to checks and balances,” the report said.

It said the National Judicial Council continued to exercise the powers it acquired through the 2023 judicial reform, adding that the Kuria, Hungary’s supreme court, continued to enforce uniformity of case law through its uniformity panel. It added, at the same time, that the transparency of case allocation in lower-instance courts had not been improved. The EC recommended that Hungary improve the transparency of case allocation systems in lower-instance courts, taking into account European standards on case allocation.

The report also said that the election procedure for the prosecutor general and the hierarchical structure of the prosecution service still posed a “risk of undue political interference in individual cases”. It said that though salaries in the justice system had continued to increase, no measures had been taken to ensure that such increases were carried out in a structured way. The report rated Hungary’s justice system as efficient overall, but recommends that the country “take measures to ensure that the ongoing increase in the remuneration of judges, prosecutors and judicial and prosecutorial staff is carried out in a structured manner, taking into account European standards on remuneration for the justice system”.

Concerning the steps taken to combat corruption, the EC noted that legislation adopted by Hungary last month aims to tackle obstacles to the effective functioning of the Integrity Authority and the Anti-Corruption Task Force. While indictments for corruption-related crimes have increased, high-level corruption cases still lacked a robust track record, it said. The report recommended that Hungary take further measures to ensure a track record of investigations, prosecutions and final judgments for high-level corruption cases.

The EC confirmed Hungary’s participation in the European Public Prosecutor’s Office (EPPO), saying that new laws strengthened the Integrity Authority and improved asset declaration systems. However, comprehensive lobbying and “revolving door” regulations were still missing, and transparency in political party financing remained flawed. The EC recommended adopting broad legislative reforms to address these gaps.

As regards media freedom and pluralism, the EC said last month’s amendment to the media law introduced reforms to both the rules governing the national media regulator, as well as rules on the governance and funding of public service broadcasting. However, state advertising transparency remained unresolved, and access to public interest data was still limited, the report said. The EC said journalists had faced significant challenges during the reporting period.

Concerning institutional checks and balances, the report said the previous government’s extensive use of emergency powers had undermined legal certainty and business operations in the single market. The new government did not extend the “state of danger” after its expiry on 13 May this year, it noted, adding, however, that foreign companies in strategic sectors still faced “intensified regulatory pressure from state action”, and that the legal framework that allowed the selective application of competition rules further weakened legal certainty for businesses.

Meanwhile, the report said the absence of procedural safeguards and effective oversight in the event of secret surveillance measures “remains a concern”. It welcomed the abolition of the Sovereignty Protection Office, adding, however, that “obstacles hindering the work of independent civil society organisations are yet to be removed”. The EC recommended that Hungary “further ensure that there are no obstacles hindering the work of civil society organisations, including by repealing legislation that hampers their capacity of working, and to further foster a safe and enabling civic space”.

European Commission Executive Vice-President Henna Virkkunen, who presented the report, said Hungary was implementing significant reforms across multiple areas, addressing many of the EC’s previous recommendations.

Micael McGrath, commissioner for the rule of law, said in response to a question about former foreign minister Péter Szijjártó and his new role at Chinese EV giant BYD that the EC did not comment on individual cases. He noted, at the same time, the recommendation that Hungary strengthen the integrity framework by adopting comprehensive legislative reforms on lobbying and revolving doors.

Asked about the removal of President Tamás Sulyok, the commissioner said the Venice Commission is set to report on the issue of the 17th amendment to Hungary’s Fundamental Law, which forms the legal basis to the matter.

Péter Magyar and President Sulyok Tamás
Péter Magyar and Tamás Sulyok. Photo: Facebook/Dr. Sulyok Tamás