Hungary's Radical Shift Under Magyar Sparks EU Rule of Law Concerns

In the two months since Prime Minister Péter Magyar took office, Hungary has reportedly made significant strides toward restoring the rule of law, according to a recent report from the European Commission. The new government has embarked on "intense reform efforts," with several legislative changes already advanced. The report describes the progress made as "impressive," especially considering the short duration since the change in leadership. A senior EU official noted a "very radical change compared with last year’s report," indicating that "things have moved very, very quickly in the right direction."

A pivotal development highlighted by the Commission is Hungary’s recent decision to join the European Public Prosecutor’s Office (EPPO). This body is crucial for investigating and prosecuting financial crimes that affect the EU budget across its member states, signaling a commitment to combating corruption at a broader European level. Furthermore, the report acknowledges substantial progress in several other key areas. These include the implementation of anti-corruption measures, improvements in asset declarations for public officials, and enhanced efficacy in the work of the Integrity Authority.

Another notable reform undertaken by Prime Minister Magyar's administration involves the dismantling of the controversial "Sovereignty Protection Office." This office, established under his predecessor Viktor Orbán, had the contentious power to access citizens’ personal data to investigate and sanction alleged foreign agents, a practice that had previously drawn an EU infringement procedure. EU Justice Commissioner Michael McGrath, during the report’s presentation, affirmed these positive trends, stating, "We see some very positive trends [...] in the early weeks of the new government’s mandate, a lot has already been done."

Despite these commendable reform efforts, the European Commission also emphasized that significant shortcomings persist within Hungary’s justice system. A senior EU official cautioned that "things cannot completely change overnight," underscoring that many recommendations from previous years' reports have yet to be adequately addressed. A persistent concern for the Commission is the procedure for appointing the Prosecutor General, which remains problematic due to its potential for allowing undue political interference in individual legal cases.

The Commission's dedicated chapter assessing Hungary, while not ranking member states, points to several remaining issues. These include concerns regarding the overall functioning of the judiciary, persistent corruption risks, and unresolved violations of EU law. Additionally, the report continues to classify Hungary’s civic space as "obstructed," primarily due to the complex registration procedures that pose a considerable challenge for smaller organizations with limited resources.

Looking ahead, the Rule of Law Report is projected to gain increasing importance in the coming years. The European Commission aims to strengthen the direct link between a country's compliance with rule-of-law standards and the allocation of EU funds under the forthcoming 2028-34 EU budget. Countries that fail to meet these established standards could face the suspension of payments. However, Commissioner McGrath clarified that there would be no automatic mechanism triggered solely by the report’s findings, implying a more nuanced approach to enforcement.