Rule of law and EU funds: Hungary on the threshold of a new era

The government led by Péter Magyar holds a two-thirds parliamentary majority, meaning it has the full legal toolkit needed to implement the necessary changes. This includes amending key laws, reshaping the institutional system, and making the required corrections to the Fundamental Law. The reform process is therefore not a matter of possibility, but of political decision.

The real stakes of the EU dispute

The essence of the rule-of-law dispute between the European Union and Hungary is not an abstract political issue, but a very tangible one: the fate of EU funds owed to the country. The European Commission has made it clear that the disbursement of funds is closely linked to whether the transparent and accountable use of public money is properly ensured.

In the current situation, the objections are not tied to a single law, but to the functioning of an entire institutional system. For this reason, the solution cannot be partial: comprehensive reforms are needed.

Judicial independence at the centre

The most important area is the justice system. According to the EU’s position, there is currently too much scope for political influence over the functioning of the courts, particularly in the appointment of court leaders and the allocation of cases.

The solution is clear: a legal framework must be created that guarantees judges can make decisions solely on professional grounds, free from external pressure. This is not only a legal issue, but the foundation of the credibility of the entire system.

The prosecution service and accountability

The role of the prosecution service is at least as critical. At present, the possibilities for reviewing a decision not to bring charges are limited. According to EU expectations, it must be ensured that in such cases an independent court can review the decision.

This change is crucial for the fight against corruption, as it is the only way to guarantee that no case can remain without consequences for political or institutional reasons.

Public procurement: restoring competition

The public procurement system is one of the most frequently criticised areas. The high proportion of single-bidder tenders distorts competition and increases the risk of abuse.

The aim of the necessary reforms is to create genuine competition for public contracts. This means stricter oversight, greater transparency, and automatic review mechanisms in cases where market competition is not ensured.

Asset declarations and the protection of public funds

The financial transparency of the political elite is also a key issue. The current asset declaration system does not provide sufficient guarantees for effective scrutiny.

The goal of the new regulation is to ensure that decision-makers’ financial situations are accurately reflected, and that false declarations carry clear consequences. This is a fundamental condition for rebuilding public trust.

Foundations and state assets

Special attention is also being paid to public-interest asset management foundations, which manage significant state resources. According to the EU’s position, it is essential that their operation be transparent, and that a clear line be drawn between political decision-making and asset management.

The aim is to create a system in which the management of public funds is not directly linked to political influence.

The real test of the reforms

Although the legal possibility exists, the real challenge is not amending the laws, but applying them consistently. The European Union expects not merely new rules, but functioning practice: genuine investigations, real accountability, and independent institutions.

The coming period will therefore be decisive. If the reforms are not only adopted but also begin to function in practice, the way may open for Hungary to access the withheld funds. This would mark a turning point not only in economic terms, but could also place the country’s international standing on a new footing in the long term

Photo: Facebook/ Magyar Péter