What are the primary policy initiatives of Hungary’s new government?

Early this week, Hungary’s new government, led by Prime Minister Peter Magyar, took over from Prime Minister Viktor Orban’s 16-year administration.

Before they were sworn in, ministers laid out their plans for change. Here are some of the most important ones:

BUSINESS

The government of Hungary wants to build a new economic model that is based on higher added value, skilled workers, and a stable economy and business environment that gives all companies the same chances to succeed.

Andras Karman, the finance minister, said on Tuesday that the Orban government’s overpriced purchases for the public good caused the budget gap to grow and the economy to become less stable.

The government will submit the budget for 2027 by the end of October. It will set a clear road to reduce the budget deficit from about 7% this year to 3% by 2030, and public spending will be looked at to make sure that corruption doesn’t waste money.

As part of Karman’s promise, he will also work to lower the country’s debt in a way that is sustainable. The economy will need growth and strict fiscal policy.

THE EUROPEAN UNION

Magyar has promised many times to bring back EU funds that were frozen because of problems with the rule of law under the Orban government. The government aims to obtain 6.4 billion euros ($7.49 billion) in grants and 3.9 billion euros in loans from the EU’s pandemic recovery fund.

The cohesion funds are meant to help member states with weaker economies catch up. They will be used for things like housing, healthcare, education, and saving energy.

Also, the new government wants to meet the requirements to join the euro by 2030 and will start a debate on the subject.

Marta Gorog, the minister of justice, said that Hungary’s laws need to once again be in line with foreign and European law, as well as EU values. “The government wants to change the ‘child protection law’ that limits access to LGBTQ+ content,” she said. This comes after an April ruling by the European Court of Justice.

POWER

The new government will look at how the 2014 expansion project at the Paks nuclear power plant was paid for and carried out. The project was given to Russia’s Rosatom without a bid.

It also wants to get energy from more than one source while keeping access to both oil routes that go to Hungary, which is seen as a plus. Hungary mostly got its oil and gas from Russia when Orban was in charge.

INTERNATIONAL LAW

Foreign Minister Péter Szijjártó said on Monday that the European Union and NATO are Hungary’s key allies. She also said that the government wants to restore trust in Hungary, which had been lost under the previous government.

His Majesty’s government also wants to rebuild cooperation in Central Europe based on the friendship between Hungary and Poland.

Anita Orban also said that she wants to keep the relationship with Russia fair and open. She also said that the US will remain a key ally in terms of security and business.

She said again that Budapest will not send soldiers or weapons to Ukraine, will not take part in an EU loan worth 90 billion euros, and does not back Ukraine’s fast accession to the EU. The government of Hungary says that Ukraine should begin the normal process of joining the EU. Once this is done, Hungary will hold a legally binding vote on its membership.

LOOK AT THE PAST

Magyar’s government is opening an office to get back money that the Orban government is said to have stolen or lost through crime. The government will set up the National Asset Recovery and Protection Office, which will begin its work on July 1.

The Tisza government is set to open the archives of the communist-era secret police by October.

TAXES

The government wants to put in place a wealth tax for people who make a lot of money and look over the tax-aid system. Value-added tax will be lowered on prescription drugs, firewood, fruit, and veggies. Low-income people will also be able to get money back from their taxes.

According to Andras Karman, the finance minister, industry taxes will stay in place for now because any changes will need to be long-term and planned ahead of time because they bring in a lot of money.

Banks, the oil business, utility companies, retail chains, and telecom companies all had to pay extra taxes because of Viktor Orban’s government.

CHECKS ON THE POWER OF THE PM

As a check on the prime minister’s power, the finance, justice, education, and health ministers will be able to veto any law before it goes to lawmakers. The government also wants to change the election rule so that no one can be prime minister for more than two terms.