The Hungarian government announced a series of significant policy decisions during Thursday’s government press briefing, ranging from the release of European Union funds and urban development projects in Budapest to major reforms affecting law enforcement, the military and public asset protection.
Transport and Investment Minister Dávid Vitézy and government spokespersons Éva Magyar and Vanda Szondi outlined the latest developments, while Prime Minister Péter Magyar headed to Brussels for his first European Council summit as head of the Hungarian government.
Government optimistic about unlocking EU funds
Vitézy said negotiations with Brussels regarding Hungary’s access to frozen EU funding were progressing according to schedule. He noted that technical discussions were ongoing concerning the country’s Recovery and Resilience Plan, including the finalisation of milestones and project details.
According to the minister, the European Commission is expected not only to approve funding from the post-pandemic recovery facility but also to release approximately EUR 6.4 billion in cohesion funds. However, additional reforms and legislative measures will still be required before all resources become available.
The government has already launched new projects linked to the expected funding, including a tender for electricity network development, while preparations continue for broader investment programmes.
Further amendments to EU-related legislation
The Hungarian government also plans to strengthen a comprehensive rule-of-law legislative package that was submitted to Parliament last week.
Vitézy announced that a substantial amendment package has been prepared to incorporate recommendations from professional organisations as well as additional requirements requested by the European Commission.
Among the planned changes are stricter asset declaration rules and expanded powers for Hungary’s Integrity Authority. Under the new system, fines would become automatic if public officials fail to correct inaccuracies in their asset declarations after receiving a formal warning.
The amendments would also allow certain previously closed criminal cases to be reopened through supplementary private prosecution procedures.
In addition, the Hungarian government is preparing legal guarantees necessary for the procurement of new suburban HÉV trains and InterCity rolling stock. A new asset development company will be established to manage investments financed from the newly available EU funds.
Reforms of the Hungarian Development Bank are also underway, including changes in leadership, which the government says are in line with European Commission expectations.
New public asset recovery office on the way
Prime Minister Magyar announced that legislation establishing a National Asset Recovery and Protection Office will be submitted to Parliament next week.
According to the Hungarian government, the new body will investigate alleged abuses involving public assets over the past two decades, examine corruption schemes and asset transfers, and support legal efforts to recover unlawfully obtained public property.
Justice Minister Márta Görög previously stated that the office’s legal framework is being developed jointly by the Prime Minister’s Office and the Interior Ministry. The institution will operate under Parliament, and its president will be elected by a two-thirds parliamentary majority.
Major changes planned for Budapest’s City Park
One of the most visible announcements concerned the future of Budapest’s City Park (Városliget).
The Hungarian government has decided to review previous decisions related to the long-running Liget Budapest development project. Vitézy criticised the state in which some unfinished areas were left following the suspension of several major investments in recent years.
He pointed to the former sites of the Petőfi Hall and the Transport Museum, describing the fenced-off and partially demolished areas as unworthy of the capital city.
The government now plans to transform former construction zones into public green spaces, with Vitézy personally overseeing the project.
A particularly notable decision is the planned elimination of through-traffic for cars crossing City Park. The Hungarian government will also begin greening the surroundings of Heroes’ Square and review the condition of public spaces along the major tourist corridor stretching from City Park to Buda Castle.
Farmers to receive additional support
The government also addressed the impact of spring frosts and recent drought conditions affecting Hungarian agriculture.
Officials announced an expansion of the agricultural damage compensation scheme, with HUF 9.6 billion being reallocated to help farmers recover losses caused by adverse weather conditions.
Government representatives stressed that rapid assistance and a strengthened compensation system are necessary to support the agricultural sector.
Dismissed soldiers offered return to service
Another decision will allow military personnel who left the Hungarian Armed Forces during the 2023 force rejuvenation programme to return to active service.
Returning soldiers will regain their previous ranks, and their salaries may not be lower than those they received before leaving the military.
The government says the measure aims to strengthen defence capabilities while addressing concerns raised following the earlier personnel restructuring.
Police and security services to be reorganised
A major restructuring of Hungary’s law enforcement system is also on the horizon.
Following a review that identified overlapping responsibilities among security organisations, the government plans to reorganise several agencies.
The Counter Terrorism Centre (TEK) will cease to exist as an independent law enforcement body. However, a new organisation retaining the TEK name will be established under the National Police Headquarters.
Under the new structure, operational counter-terrorism tasks and personal protection duties will remain within TEK, while criminal investigations and terrorism-related intelligence work will be carried out by the National Bureau of Investigation, which will become an independent territorial body.
The Rapid Response Police will assume responsibility for facility protection, bomb disposal operations, event security and major police deployments.
Meanwhile, the Parliamentary Guard will also cease operating in its current form. Following a period of public consultation, the government expects the reforms to enter into force in early September.
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Prime Minister attends first EU summit
While the briefing was taking place in Budapest, Prime Minister Magyar travelled to Brussels to participate in his first European Council summit as head of government.
His schedule includes meetings with European Parliament President Roberta Metsola, Czech Prime Minister Andrej Babiš and Slovak Prime Minister Robert Fico.
Discussions are expected to cover migration policy, Visegrád Group cooperation, cohesion funding and the Hungarian government’s ongoing rule-of-law dialogue with EU institutions.
The Brussels visit comes as Hungary continues efforts to secure access to billions of euros in EU funding, which remains one of the government’s highest priorities.
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