Hungary’s new Tisza-led government has announced that it will terminate a massive state funding agreement worth HUF 261.7 billion (approximately EUR 727 million) that the previous Orbán government signed with the Élvonal Foundation, the organisation chaired by Nobel Prize-winning physicist Ferenc Krausz.

Prime Minister Péter Magyar confirmed the decision in a Facebook post on Friday, stating: “The government is terminating the HUF 261.7 billion contract concluded with the foundation of Nobel Prize-winning researcher Ferenc Krausz. We are asking the professor to return the HUF 22 billion already transferred.”

The agreement had originally been signed in February, just two months before Hungary’s parliamentary election, between the Ministry of Culture and Innovation, led by former minister Balázs Hankó, and the Élvonal Foundation.

Contract details emerged after freedom of information request

The exact scale of the agreement became public only after a freedom of information request submitted by Magyar Hang. According to the revealed contract, the ministry had committed to supporting the foundation with a total of HUF 261.7 billion until 31 December 2031.

By the end of April this year, the state had already transferred HUF 22.4 billion (EUR 62.2 million) to the organisation. In addition to the main funding package, the foundation was also set to receive an annual operational subsidy of HUF 400 million (EUR 1.1 million) adjusted for inflation.

The newly formed government is now requesting the repayment of the already disbursed amount.

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Foundation was created to build world-class research environment

The Élvonal Foundation was established in November last year as a public-interest asset management foundation carrying out public duties, known in Hungary as a “kekva” structure.

According to its original mission statement, the foundation planned to use the funds to create internationally competitive research conditions for at least 25 globally recognised top researchers and around 50 exceptionally talented young scientists. It also intended to establish a nationwide talent development network.

The foundation was previously criticised publicly when it withdrew financial support from the National Academy of Scientist Education, a programme assisting around 5,500 students across 375 secondary schools and working with more than 400 teachers nationwide.

At the time, the foundation cited Hungary’s domestic political situation as the reason behind its decision. Krausz later stated that the organisation would not undertake major commitments until it saw guarantees that a future Tisza government would fully honour the financing agreement signed with the previous administration, according to Telex.

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