When Péter Magyar swept to power in Hungary's March 2026 elections, ending Viktor Orbán's 16-year tenure, relief rippled through European capitals. Now, his inaugural visit to Berlin to meet Chancellor Friedrich Merz (CDU) will test whether that relief translates into tangible change.
The relationship between Germany, the European Union, and Hungary requires rebuilding after years of strain. Berlin and Budapest must clarify how closely they intend to cooperate on key European issues—from support for Ukraine to EU institutional reforms.
“Chancellor Merz’s expectations of Prime Minister Magyar are likely to be fairly straightforward: if at all possible, Hungary should not cause political headaches in the foreseeable future,” Daniel Hegedüs, deputy director of the Institute for European Politics (IEP), told Euronews.
Those “political headaches” are most likely to arise over strategic EU decisions, particularly regarding Ukraine and the next Multiannual Financial Framework (MFF). Germany primarily hopes for a normalisation of Hungary’s European and foreign policy. While Orbán repeatedly wielded vetoes in the EU and NATO and cultivated close ties with Russia and China, Magyar’s Hungary is expected to become a predictable partner again.
“German expectations focus on a normalisation of Hungary’s European and foreign policy and on restoring Hungary as a reliable and constructive partner at European and international level,” said Hegedüs. He added that German-Hungarian relations had been severely strained by Budapest’s “politics of blockade and veto in the EU and NATO,” as well as advancing autocratisation, rule-of-law deficits, and pressure on German investors outside the automotive sector.
Economic and Institutional Demands
Germany is also looking for changes on the economic and institutional front. “A marked improvement in the investment climate for German companies, along with progress in strengthening the rule of law in Hungary, would certainly be seen in Berlin as a welcome additional outcome,” Hegedüs noted.
Merz himself described Magyar’s election victory as a positive signal. On X, the chancellor said he looked forward “to working together for a strong, secure and above all united Europe.” The result, Merz later stated in Berlin, was a sign of the strength of European democracies and a blow against right-wing populism worldwide.
But expectations are not one-sided. Budapest arrives in Berlin with clear demands. Centre stage is the release of further EU funds frozen during the Orbán years over breaches of rule-of-law principles. Magyar is hoping for support from Germany and the European People’s Party for the gradual lifting of conditionality measures imposed on Hungary.
“Magyar’s expectations of Merz are focused on securing strong support from Germany and the European People’s Party for the gradual dismantling of the EU sanctions or conditionality measures imposed on Hungary,” Hegedüs explained.
The new government has already secured some progress. On Friday, a total of €16.4 billion in previously blocked EU funds for Hungary was released, including money from the recovery fund, the cohesion fund, and other allocations tied to reforms. However, Budapest must still implement—and in some cases complete—extensive reforms on the rule of law, anti-corruption, and institutional oversight. According to Hegedüs, roughly half of the previously suspended cohesion funds remain frozen.
Magyar is under considerable domestic pressure. His government is trying to dismantle numerous structures from the Orbán era while maintaining economic stability. “The government’s core European policy goals are the release of frozen EU funds for Hungary, securing advantageous positions in negotiations on the next Multiannual Financial Framework, and joining the eurozone by 2030,” said Hegedüs. Cohesion and agricultural funds are of particular importance.
For Hegedüs, Hungary’s aims reflect an effort to catch up with the European mainstream, not an ambition to play a leading strategic role in shaping European security policy or the EU’s global role.
Ukraine as a Litmus Test
Whether Hungary’s political reorientation succeeds is likely to become apparent in its policy on Ukraine. Although Magyar’s government has dropped its blockade of a €90 billion EU financial package for Ukraine, Budapest still refuses to support the opening of EU accession talks with Kyiv. The reason is a dispute over the rights of the Hungarian minority in the western Ukrainian region of Transcarpathia. Whether Hungary will act as a constructive partner or once again a blocking force remains to be seen.
This visit comes amid broader shifts in European politics. For more context on Magyar's diplomatic push, see our analysis Hungary's Péter Magyar Heads to Berlin and Paris to Cement EU Reintegration. Meanwhile, Germany's domestic challenges, such as its renewable energy boom failing to lower high electricity prices, add another layer of complexity to the bilateral relationship.
