Hungary's new government moves rapidly to dismantle Orbán-era system

Hungary's new government has moved rapidly to dismantle institutions and practices built during former prime minister Viktor Orbán's 16 years in power, while pushing reforms to the media, economy and state services, but its haste and use of a parliamentary supermajority have raised concerns, a Carnegie Endowment analysis said.
The assessment by Thomas Carothers, published on September 15, comes four months after Péter Magyar and his newly formed Tisza Party decisively defeated Orbán's Fidesz in April, ending its long period in government.
Carothers said it was still early in what would be a lengthy transition but that the new administration had already moved on a broad range of reforms.
"Hungary’s redemocratization entails a distinctive combination of an enormous amount that needs to be done with an enormous amount of power to do it," he wrote.
Tisza's parliamentary supermajority gives it extensive influence over constitutional reform, the state apparatus and the economy, while allowing it to govern without coalition partners, according to the analysis. The previous government had also used a parliamentary supermajority to establish a complex system of institutions, patronage and state control.
A central priority for Magyar has been tackling corruption associated with the previous administration. His government has established a National Asset Recovery and Protection Office with investigative and enforcement powers and plans to recover state assets allegedly taken during the Fidesz years.
Hungary is also set to join the European Public Prosecutor's Office, the European Union body responsible for investigating fraud and corruption involving the bloc's financial interests.
Carothers cautioned that recovering assets could prove difficult because of the scale of alleged wrongdoing and the fact that some corruption had been structured through legal mechanisms.
The government has also begun removing officials and institutions associated with the previous system. Sixteen public-interest asset management foundations had been closed by the end of August, with severalbn euros in funds returned to the state, the analysis said.
Media reform has been another priority. The government has halted state funding to a network of Fidesz-friendly media outlets and reopened Hungary's main national television and radio news operations under new management after a six-week interruption.
In June, parliament approved amendments to the media law aimed at replacing structures built under Fidesz with institutions designed to meet European democratic standards, including an independent public media board.
Carothers noted that the reforms had received both support and criticism, with some observers questioning the speed of the process and the selection of new oversight bodies.
The economy is another major focus. The government has sought to unlock EU funds frozen over concerns about corruption and rule-of-law standards. Carothers said Magyar travelled to Brussels soon after taking office and secured a political agreement covering €16.4bn in EU funds, comprising €10bn in recovery funds and €6.4bn in cohesion funds.
The government subsequently worked on the reforms required for the recovery money, with a decision on its release expected by the end of 2026, according to the analysis.
Economic indicators have also improved since the election, Carothers wrote. Government borrowing costs have fallen, the National Bank of Hungary cut interest rates three times from June, inflation was below 2% year-on-year in July and the forint strengthened against the dollar and euro.
The government has also begun work on health, education and transport, initially through targeted spending and consultations before broader reform proposals expected in the autumn.
Foreign policy has undergone a parallel shift. The new government is seeking closer relations with the EU and has moved to align its Ukraine policy more closely with other EU governments, while reducing tensions with Ukrainian President Volodymyr Zelenskiy.
In late August, Hungary issued policy guidelines describing Russia's actions in Ukraine as a threat to Hungary, Europe and the global order, according to Carothers.
Magyar has also sought to revive the Visegrád Group with the Czech Republic, Poland and Slovakia after years in which disagreements over Orbán's approach had weakened the grouping.
The analysis nevertheless identified concerns over the government's speed and concentration of power. Carothers said Magyar's "search for speed results in errors of both judgment and execution" and cited criticism that the government had sometimes shortened consultation processes, including during media reform.
Magyar had also shown "a harshness and combativeness that borders on imperiousness", Carothers wrote, noting concerns in a country emerging from years of strong prime-ministerial rule.
The government's decision to force out the holdover president using its parliamentary majority drew criticism from civil society groups and international observers, while a new 12-year limit on parliamentary terms has been criticised by some as potentially targeting Fidesz.
The analysis said managing public expectations would be another major challenge. Tisza won 53% of the vote in April and its support had risen above 60% in July, according to polling cited by Carothers, while Fidesz had fallen to about 24%.
"The pressure of high expectations will continue to weigh on the new government," he wrote.
The next phase will require comprehensive reforms to the constitution, media, education and healthcare, as well as turning investigations into past corruption into successful prosecutions and ensuring the initial economic improvement becomes sustained growth.
Carothers also pointed to wider challenges including drought, weak European economic growth, security concerns linked to Russia and uncertainty over energy prices amid conflict in the Middle East.
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