On April 12, the Hungarian people put an end to Viktor Orban’s 16 years in power and rejected widespread corruption, the erosion of democracy, and Hungary’s drift away from its Western allies. After 100 days in office, Hungary’s new government, led by Prime Minister Peter Magyar, has already demonstrated a simple but often overlooked truth: corruption carries an economic cost. Restoring the rule of law is not an abstract constitutional exercise. It can produce immediate and tangible economic benefits.
By the end of April, Hungary’s previous government had accumulated a central-government deficit amounting to 91% of the 2026 target. During the three months that followed, the new government recorded a surplus of HUF 991.9 billion, or approximately $3.16 billion. This turnaround was achieved without austerity measures or major structural reforms, but through tighter control of public spending, discontinuation of overpriced public contracts, and measures to reduce corruption and politically motivated outlays.
Corruption under the previous government had become intertwined with a broad system of state capture, in which institutions, public resources, and political power increasingly reinforced one another to serve the enrichment of the governing elite. The construction of such a system did not happen overnight. Democracy didn’t die with a bang. It eroded gradually — like the proverbial frog being slowly boiled.
One telling example is public procurement, where politically well-connected companies benefited disproportionately. Hungary’s single-bid public procurement system became a tool for unprecedented wealth concentration. While overall single-bid rates hovered around a third of all contracts, the total value of these noncompetitive awards won by politically connected companies reached a record 71% by 2025. This dynamic was most evident in high-value infrastructure sectors such as railways, where the single-bid rate hit 100%, completely eliminating market competition to benefit a single government-linked bidder. Many of these contracts were highly overpriced, resulting in the squandering of valuable taxpayer money.
Institutional rules were repeatedly redesigned by the previous Orban government to concentrate power and weaken checks and balances. Over the years, the media landscape became increasingly concentrated in government-linked hands, according to estimates accounting for more than 80% of the sector. Independent media was under intense political and financial pressure, while government-controlled outlets benefited from lavish state advertising revenues. The powers of the Constitutional Court were reduced, while institutions responsible for investigating corruption lost independence or effectiveness.
Loyal officeholders were appointed to key institutions for terms extending far beyond ordinary electoral cycles, many well into the 2030s. This architecture was designed to hamstring any government that followed.
Moreover, this model, based on corruption and state capture, led to the erosion of Hungary’s sovereignty. The country became increasingly dependent on external financing. Once the European Union froze funding because of concerns over corruption and the rule of law, the Hungarian government increasingly sought alternative sources of financing, including Russian and Chinese loans for major state projects, primarily for the development of critical infrastructure. The result was greater financial and political dependence on non-Western powers, just as Hungary was becoming increasingly isolated from many of its European and NATO allies.
Hence, restoring the rule of law and cracking down on corruption became inseparable from restoring Hungary’s economic position, sovereignty, and Western orientation. The new government, in office since May, immediately began dismantling state capture and restoring the rule of law by building safeguards to prevent any government — now or in the future — from ever again derailing Hungary’s democracy. It has started to reform institutions designed to provide democratic oversight and initiated a process of rebuilding a transparent and accountable system of government.
Separately, the election of a new head of state, together with the restoration of meaningful institutional checks and balances, reflects the broader renewal of Hungary’s democratic institutions.
The government has introduced stronger tools to combat systemic corruption and recover public assets. An amendment to the Fundamental Law created the National Asset Recovery and Protection Office. Its aim is to investigate abuses involving public assets, recover assets unjustifiably allocated, and ensure their proper use in the future. The amendment also removed constitutional provisions that allowed public wealth to be shielded from scrutiny, ensuring greater transparency, accountability, and the recovery of unlawfully diverted public resources. The amendment repeals the current restrictive definition of public funds in the Fundamental Law so that the flow of public assets cannot be concealed through legal loopholes.
DON’T FALL FOR TEHRAN’S TALKING POINTS ABOUT THE RESISTANCE
Hungary’s democracy will soon be fortified by a new constitution to be adopted through an inclusive process and ultimately approved by Hungarian citizens in a national referendum. Its purpose is to establish rules strong enough to ensure that no future majority can abuse its powers. The measure of success will be whether this process results in genuinely independent institutions, transparent rules, and effective checks and balances. These foundations will pave the way for robust, healthy economic growth that will serve the interests of Hungarian society and create a level playing field for foreign and Hungarian investors.
Undoing 16 years of damage won’t happen overnight. The first 100 days of the new Hungarian government have already demonstrated that restoring the rule of law can help build a more responsible state, improve the budget, strengthen national sovereignty and make Hungary once again a trusted ally.
Dr. Anita Orban is the Deputy Prime Minister and Minister of Foreign Affairs of Hungary.