Hungary Launches $3.2 Billion Anti-Corruption Drive As PM Rejects Extra Security After Spitting Attack (Worthy News In-Depth)

by Stefan J. Bos, Worthy News Europe Bureau Chief reporting from Budapest, Hungary

BUDAPEST (Worthy News) – Hungary’s Prime Minister Péter Magyar announced Thursday a sweeping anti-corruption drive targeting projects approved under the previous administration led by Viktor Orbán, saying the government had filed criminal complaints over projects worth about $3.2 billion while vowing not to increase security after being spat on by a passerby earlier this week.

He also unveiled far-reaching economic and social reforms, including tax cuts, spending reductions, new welfare measures and tighter oversight of state institutions.

Magyar told reporters that the criminal complaints concerned four major financing arrangements involving Hungary’s Eximbank, the state-owned institution established to support Hungarian exports and international investments.

The first concerned 59 billion forints, or about $190 million, in financing for a luxury hotel development at the site of Budapest’s former Sofitel hotel, a project linked to István Tiborcz, Orbán’s son-in-law.

Magyar alleged that Eximbank approved the high-risk financing within two days despite the board proposal containing about 145 pages and despite several exceptions being made to the institution’s internal rules.

AFRICAN PROJECT SCRUTINIZED

The second complaint concerned 126 billion forints, or roughly $405 million, in financing from Eximbank and the Hungarian Development Bank for a project involving businessman László Szíjj’s Duna Aszfalt company.

The proposed development included an expressway, bridge and border crossing between Zambia and the Democratic Republic of the Congo, countries Magyar said had been classified as carrying the highest level of financial risk.

The Hungarian state reportedly guaranteed much of the financing, leaving taxpayers exposed to potential losses if the project failed.

A third complaint involved 176 billion forints, about $565 million, in state-backed credit provided to Egypt’s national railway for railway carriages produced through a Hungarian-Russian partnership.

Magyar said the Russian partner withdrew following Moscow’s full-scale invasion of Ukraine, while the Hungarian company involved later collapsed and hundreds of promised railway carriages remained undelivered.

NORTH MACEDONIA LOAN

The fourth case concerned a €1 billion, or about $1.17 billion, unrestricted loan granted to North Macedonia at an interest rate of 3.25 percent.

Magyar warned that the loan’s favorable conditions and the difference between its interest rate and Hungary’s own borrowing costs could ultimately cost the Hungarian budget about 90 billion forints, or nearly $290 million.

The Economy and Energy Ministry filed criminal complaints alleging possible “breach of fiduciary duty” and other offenses, Magyar confirmed.

The allegations remain under investigation, and Hungarian authorities had not announced charges against those involved.

Magyar said investigations into suspected wrongdoing under the previous government would accelerate, but stressed that prosecutors should operate professionally and “without political instructions.”

PROSECUTOR RESIGNS

His remarks came one day after Hungary’s Prosecutor General Bálint Gábor Nagy unexpectedly resigned, saying the Prosecutor’s Office should never become an instrument of political struggle.

Magyar, who had repeatedly urged Nagy to step down, said the transition to a genuinely independent prosecution service would be complete only after remaining officials associated with the Orbán era had departed.

The prime minister also announced that the parliamentary group of his ruling Tisza Party would decide whom to nominate as Hungary’s next president as early as next week.

He argued that the nominee did not necessarily have to be a lawyer and could instead be a widely respected artist, athlete or other public figure capable of representing national unity.

Additionally, Magyar said his government would review the operations of the State Audit Office and strengthen the authority of Hungary’s tax agency to conduct wealth investigations covering as many as 20 years.

WEALTH PROBES PLANNED

The proposed investigations could cover politicians and members of their households where authorities suspect that declared income cannot explain accumulated wealth.

Magyar explained that the measures were intended to restore public confidence and ensure that political connections no longer protected officials or businesspeople from scrutiny.

Addressing Monday’s incident at Budapest’s Nyugati (Western) Railway Station, where an angry passerby spat at him, Magyar said he would not change his security arrangements. Video reviewed by Worthy News showed Magyar wishing the man “good health” before remarking that the encounter reflected “what remains of Fidesz” and quipping that “perhaps that’s why [minister] János Lázár didn’t travel by train.”

“I don’t want to travel in an armored car or wear a bulletproof vest among the people. If someone spits at me, that’s a risk I’m prepared to take,” Magyar insisted. He praised the police officers protecting him and said they had acted appropriately.

Magyar declared that neither harsh criticism nor personal attacks would deter him from implementing what he described as necessary reforms.

TAX CUTS ANNOUNCED

Among the economic measures, Magyar pledged that value-added tax on prescription medicines would be abolished, while VAT on firewood would be reduced from 27 percent to 5 percent.

He said the government would later consider reducing taxes on healthier food products as part of efforts to ease the burden on households.

Magyar announced salary restrictions for executives at state-owned companies, saying their pay would generally be capped at the prime minister’s gross monthly salary of about 3.8 million forints, or roughly $12,200.

The government expects this year’s budget deficit to remain below 7.5 percent of gross domestic product and possibly approach 7 percent, Magyar said.

He projected that the deficit would fall well below 6 percent in 2027 and move toward about 3 percent by 2030.

RAILWAY INVESTMENT

The prime minister also announced “the Baross Gábor Railway Development Plan,” a 10-year program worth about 3.55 trillion forints, or more than $11 billion.

The plan includes extensive modernization of Hungary’s railway network and improvements to services and infrastructure around Lake Balaton, Central Europe’s largest lake and one of the country’s most popular tourist destinations.

Magyar said repairs at MOL’s refinery were expected to be completed in September, after which the refinery should be able to supply about 80 percent of Hungary’s domestic fuel demand.

He noted that Hungarian fuel prices remained comparatively low but acknowledged that future increases could not be ruled out because of developments on international energy markets.

The announcements came amid mounting political tensions as investigations continued into institutions and financial arrangements connected to the former Orbán government.

FIDESZ DENIES WRONGDOING

Fidesz has accused Magyar’s administration of using prosecutors and state agencies to intimidate political opponents.

The party made the claims after investigators entered an important Fidesz server facility and seized digital equipment and data as part of a corruption investigation.

Authorities are also examining the distribution of about 17 billion forints, or roughly $55 million, through Hungary’s National Cultural Fund.

Orbán and other former government officials have denied wrongdoing and described the investigations as politically motivated.

Magyar’s government rejects those allegations, saying the investigations are intended to restore the rule of law, protect public funds and ensure accountability after years of alleged corruption.

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