When Péter Magyar swept to power in April's parliamentary election, many in Brussels hoped the era of open confrontation with Hungary was over. The new prime minister, who campaigned on a promise to bring his country back to the heart of the European Union, has moved quickly to repair ties that had frayed badly under his predecessor.
In May, Magyar met European Commission President Ursula von der Leyen in Brussels and reached a deal to unlock €16.4 billion in EU funds that had been frozen over long-standing concerns about rule-of-law and corruption. The agreement was widely seen as a tangible sign of goodwill from both sides. The Commission had previously insisted that Budapest would need to demonstrate concrete reforms before any money was released.
Hungary has also dropped its veto on the opening of EU accession negotiation clusters for Ukraine, a move that had been a major irritant in EU-Ukraine relations. The decision, announced in early May, allowed the bloc to formally begin talks with Kyiv on the first set of negotiating chapters. It was a significant shift from the previous government's stance, which had repeatedly blocked progress on Ukraine's path to membership.
But the thaw is not complete. Several issues remain unresolved, including migration policy and the rights of sexual minorities. Budapest's hardline position on migration, which includes the construction of border fences and the rejection of EU relocation quotas, continues to clash with the Commission's push for a common asylum system. And while the new government has signalled a more conciliatory tone on LGBTQ+ rights, concrete legislative changes have yet to materialise.
Magyar's approach has been pragmatic rather than ideological. He has framed his EU policy as a matter of national interest, arguing that Hungary's future lies within a strong and united Europe. In his first major speech to the European Parliament in May, he said: "We are not asking for favours. We are asking for a fair partnership, based on mutual respect."
The release of the €16.4bn is a significant boost for Hungary's economy, which has been struggling with high inflation and sluggish growth. The funds are earmarked for infrastructure projects, digitalisation, and green transition initiatives. The European Commission has said it will monitor how the money is spent, with regular audits to ensure compliance with EU standards.
Analysts note that the deal is also a political victory for von der Leyen, who has faced criticism from some member states for being too lenient on Hungary. By securing concrete commitments from Magyar, she can point to a tangible outcome of her engagement strategy. However, the Commission has made it clear that the release of further funds will depend on continued progress on judicial independence and anti-corruption measures.
One of the most contentious issues remains the treatment of LGBTQ+ people. Hungary's parliament recently voted to scrap anti-LGBTQ+ child protection clauses, a move that was welcomed by human rights groups but which fell short of a full repeal of the controversial law. The Commission has said it will continue to monitor the situation closely.
On migration, Hungary has refused to participate in the EU's voluntary solidarity mechanism, which aims to redistribute asylum seekers across member states. Instead, Budapest has proposed a "flexible solidarity" model, allowing countries to contribute financially rather than accepting refugees. This position has found support among some other Central European states, but it remains at odds with the Commission's preferred approach.
The question now is whether Magyar can sustain the momentum. His political capital is high, but he faces a difficult balancing act at home, where nationalist sentiment remains strong. He has promised to maintain Hungary's sovereignty while also rebuilding trust with Brussels. That will require careful navigation of both domestic and European politics.
For the EU, the stakes are high. A functioning Hungary is essential for the bloc's cohesion, particularly on issues like Ukraine and energy security. The recent opening of Ukraine accession talks was a direct result of Hungary's change of heart, and it has been welcomed by other member states as a sign that Budapest is willing to play a constructive role.
Yet the underlying tensions have not disappeared. The European Commission has already released €4.2bn in anti-corruption funds as part of the broader deal, but further disbursements will be conditional on verifiable reforms. The coming months will test whether the new government can deliver on its promises.
In the meantime, the EU is also watching developments in other areas, such as the worst drought in 126 years, which has hit Hungarian agriculture hard. The release of EU funds could help mitigate the economic impact, but it also underscores the need for long-term investment in climate resilience.
Magyar's reset is a work in progress. The initial signs are positive, but the real test will be whether he can turn rhetoric into reality. For now, Brussels is cautiously optimistic, but it is keeping a close eye on Budapest.
