Phoenix 24
Brussels recognizes reform, but structural weaknesses remain.
Budapest | July 2026
Hungary has taken significant steps toward restoring the rule of law during the first two months of Prime Minister Péter Magyar’s administration, according to the European Commission’s latest assessment of democratic standards across the European Union.
The report highlights what Brussels describes as intense reform efforts undertaken by the new Hungarian Government, with several legislative changes already at an advanced stage. European officials consider the speed of the transformation particularly notable given the limited time elapsed since the political transition.
A senior European Union official said Hungary’s situation had changed radically compared with the previous annual assessment, with reforms moving rapidly in a direction that Brussels considers positive. The evaluation represents a substantial departure from years of confrontation between European institutions and the Government of former Prime Minister Viktor Orbán.
One of the most consequential measures has been Hungary’s decision to join the European Public Prosecutor’s Office, the independent EU institution responsible for investigating and prosecuting financial crimes affecting the European budget.
The move could strengthen oversight of fraud, corruption, money laundering and the misuse of European resources. Hungary’s previous Government had resisted joining the institution despite repeated calls from opposition parties, transparency organizations and European authorities.
The Commission also identified progress in anti-corruption policies, declarations of assets by public officials and the work of Hungary’s Integrity Authority. These mechanisms are intended to improve accountability, expose potential conflicts of interest and reinforce controls over the administration of public money.
Magyar’s Government has also dismantled the Sovereignty Protection Office, an institution created during Orbán’s administration. The body had powers to access citizens’ personal information while investigating individuals and organizations suspected of acting on behalf of foreign interests.
Critics argued that the office could be used to intimidate journalists, activists, political opponents and civil society organizations. The European Union had already initiated infringement proceedings against Hungary over concerns that the institution’s operations could violate fundamental rights and European legal protections.
European Commissioner for Justice Michael McGrath welcomed the initial developments, stating that substantial measures had already been adopted during the first weeks of the new Government’s mandate. Brussels, however, stressed that Hungary’s institutional transformation remains incomplete.
The Commission warned that democratic systems cannot be comprehensively restructured within a few weeks and that many recommendations issued in previous reports have not yet been implemented. Structural weaknesses developed over several years will require sustained legislative action, independent enforcement and measurable institutional results.
One unresolved issue concerns the appointment of Hungary’s prosecutor general. European authorities remain concerned that the existing procedure could allow inappropriate political influence over individual cases, particularly those involving corruption or senior public officials.
The functioning of the judicial system also continues to face scrutiny. Brussels has called for stronger guarantees of judicial independence, greater transparency in institutional decision-making and effective safeguards against political interference.
Concerns persist over corruption risks and unresolved violations of European Union law. The Commission continues to classify Hungary’s civic space as obstructed, noting that complex registration procedures and administrative requirements remain especially difficult for smaller organizations with limited financial and legal resources.
The assessment could eventually carry important financial consequences. European institutions are seeking to reinforce the connection between compliance with rule-of-law standards and access to EU funds under the proposed budget covering the 2028–2034 period.
Countries that fail to respect democratic and legal requirements could face the suspension of certain European payments. McGrath clarified, however, that the annual report will not automatically activate financial sanctions.
Any restriction would require a separate institutional procedure, an evaluation of specific risks to the European budget and formal decisions under the applicable European mechanisms.
The Commission’s annual review examines the justice system, anti-corruption frameworks, media pluralism and the institutional checks and balances that limit executive power across every EU member state.
For Hungary, the latest findings mark the beginning of a markedly different relationship with Brussels. The new administration has moved rapidly to reverse several policies associated with the Orbán era, but European authorities will evaluate whether these changes become permanent, independently enforced and resistant to future political pressure.
The decisive test will not be the number of reforms announced during Magyar’s first months in office, but whether they produce institutions capable of protecting judicial independence, public accountability and democratic rights beyond a single Government.
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