What can investors expect from Hungary's new government?

On 12 April 2026, Hungary elected a new parliament dominated by Péter Magyar’s TISZA Party, bringing to an end 16 years of rule by Viktor Orbán’ FIDESZ-KDNP coalition. Mr Magyar is expected to be asked to form a new government which will take power in the coming weeks. This note provides a brief overview of anticipated changes in policy and opportunities for investors in Hungary, based on the TISZA Party’s published manifesto.

1. Geopolitical realignment

One of the key differences between TISZA and FIDESZ is in their geopolitical outlook. TISZA is avowedly pro-EU and pro-NATO, emphasizing that Hungary’s position is as a committed member of these alliances. One of TISZA’s priorities will be to re-establish co-operative relations with the EU, to demonstrate Hungary’s commitment to EU norms in relation to the rule of law and anti-corruption and to ensure the release of EU funds to Hungary that have been withheld under the EU conditionality regulation.

2. Economic policy

Hungary will continue to be a highly integrated part of European and international supply chains.

TISZA has criticized the FIDESZ government for failing to increase Hungarian productivity and the share of value added by Hungarian businesses in the cross-border supply chains that drive economic activity in Hungary. TISZA is likely to eschew support for large scale, subsidy intensive assembly projects, particularly those that are environmentally damaging or reliant on the import of labour from outside Hungary. Instead, TISZA envisages rebuilding Hungary’s image as a credible, rule-based and safe investment location anchored in the EU and Western European supply chains. Government support for investment would be targeted at innovation led investments (in areas such as R&D and engineering) that promote higher value work and greater opportunities for trickle down to domestic SME suppliers.

3. Strengthening of the rule of law and zero tolerance of corruption

One of the main campaign promises was to return to a society based on the rule of law and the reintroduction of checks and balances together with a zero tolerance of corruption.

The TISZA party also promised in its manifesto that Hungary would join the European Public Prosecutor’s Office allowing the EPPO to investigate crimes against the financial interests of the EU also in Hungary.

TISZA has announced that it will establish a new prosecutorial office to investigate corruption and misuse of public funds. Existing government contracts and projects will be subject to review. For contractual partners involved in such transactions, this may trigger internal compliance processes and other forms of internal investigations.

To the extent that the new government is successful in these aims, investors will again benefit from greater legal certainty in their dealings in Hungary.

4. Return to a rules based market

One of the previous government’s stated policies was the development of an (informal) System for National Cooperation (Nemzeti Együttműködés Rendszer or its ubiquitous Hungarian acronym “NER”). This approach was ostensibly to support locally owned businesses and allow a wealthy Hungarian elite to develop: NER has, however, become a byword for cronyism and corruption. Many businesses associated with the previous FIDESZ government (and their family members) benefited from generous contracts and support from the Hungarian state. Many of these businesses will find it difficult to survive in their current form without continuing government support. It is likely that there will be significant opportunities for restructuring of these businesses and opportunities to acquire their assets by investors with more experience in operating in a market economy. Areas where such opportunities may occur include: telecommunications, banking, construction, infrastructure and hospitality.

Businesses focused on providing goods and services to the Hungarian population such as retail, utilities, banking and telecoms have been subject to targeted high taxation and interference by regulatory authorities. Many investors were forced out of these sectors, cut deals with local Hungarian oligarchs to obtain a degree of “protection”. Others decided against further investment in Hungary due to the risk of such interference. The TISZA government has promised to end such prejudicial treatment: it may take some time for investors to become comfortable in its commitment and ability to deliver on this promise.

5. Diversification of energy

TISZA has committed to remove Hungary’s dependence on Russian energy completely by 2035. This will require significant investment in providing access to alternative sources of energy. Other areas of priority include energy storage and transmission networks.

6. Investment in infrastructure

TISZA has committed to significant investment in education, healthcare and road and rail infrastructure (including to re-evaluating the current 35 year concession over a large portion of the Hungarian road network). Such investment is likely to require significant amounts of financing and may lead to significant infrastructure investment opportunities in Hungary.

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