Magyar becomes Hungary’s PM on transformation promises

Center-right leader Peter Magyar became Hungary’s prime minister on Saturday, promising change following years of economic stagnation and difficult relations with partners under predecessor Viktor Orban.

Magyar won a resounding victory over nationalist Orban (16 years in office) on April 12, giving his Tisza party a constitutional majority to roll back changes critics argue have undermined democracy.

Both foreign investors and Hungarians have cheered Magyar’s triumph, with the forint reaching four-year highs against the euro, bond yields decreasing, and Tisza gaining support in post-election polls.

The 45-year-old leader’s honeymoon period may be brief as he pursues billions of euros in EU funding to rejuvenate the economy and stabilize public finances. Magyar stated that the Hungarian people have given him a mandate to end decades of drift and start a new chapter in Hungary’s history. We aim to transform both the government and the system. Starting over.”

Magyar inherits an economy that barely emerged from stagnation in the first quarter and now confronts rising energy costs connected to the Middle East crisis, which might hurt Europe’s import-reliant economy.

Data released on Friday revealed Hungary’s budget deficit surpassed 71% of the full-year target by April, primarily due to pre-election expenditures by Orban. Magyar said the gap might reach 7% of output this year.

He promises to reaffirm Hungary’s Western orientation. The NATO member was perceived as aligning with the Kremlin under Orban, who rejected EU help for Ukraine against Russia’s incursion.

Magyar plans to cease public media news broadcasts after seizing power, citing state media and pro-Orban outlets for promoting the former leader and limiting critics’ airtime.

Magyar, pledging an anti-corruption campaign, seeks to negotiate with EU leaders to restore financing by May 25.