Hungary Politics Explained, Who Holds Power in 2026

HUNGARY · POLITICS

The New Power Structure

Hungary is governed by Prime Minister Péter Magyar and his pro-European Tisza party, which defeated Viktor Orbán’s Fidesz in the April 12, 2026 parliamentary election. Tisza won 141 of Parliament’s 199 seats, more than two-thirds, with 53% of the list vote, while Fidesz-KDNP took 52 seats and 39%.

This guide is part of The Rio Times series on European politics. See also our guides to Spain and Germany’s AfD debate.

The far smaller Mi Hazánk party holds the other 6 seats. Magyar was sworn in on May 9, ending Orbán’s 16 years as Hungary’s dominant political leader.

The president of the republic holds a largely ceremonial role, while the prime minister directs the executive branch and selects cabinet ministers. Orbán remains the leader of Fidesz and now sits in opposition.

The new government created the National Asset Recovery and Protection Office, which Magyar calls a “superauthority” able to coordinate police, prosecutors and the tax authority. Hungary also joined the European Public Prosecutor’s Office in July, reversing Orbán’s longstanding refusal to take part.

Anti-Corruption Drive and EU Relations

The government is pursuing former Orbán-era officials over alleged corruption and misuse of public funds. In late September, after parliament lifted their immunity, two former ministers were detained: Balázs Hankó, over suspected embezzlement of 17.3 billion forints (about US$53 million), and Miklós Seszták, over suspected bribery involving more than 11 billion forints (about US$34 million).

On October 21, police detained former central bank governor György Matolcsy on suspicion of fraud, and prosecutors asked a court to hold him in pretrial detention. Magyar has promised accountability for Orbán-era abuses and says it must follow the rule of law.

The European Union had frozen Hungarian funds over corruption and rule-of-law concerns. On May 29 it agreed to release €16.4 billion (about US$18.4 billion), including €10 billion from its recovery fund, and on October 13 it freed a further €4.2 billion (about US$4.7 billion) in cohesion money.

A last €2.2 billion (about US$2.5 billion) still depends on further reforms. Hungary also remains in conflict with the EU over asylum policy: in June 2024 the Court of Justice of the EU imposed a €200 million penalty plus €1 million per day.

Economic Agenda and 2027 Budget

Magyar’s proposed 2027 budget combines tax cuts for lower earners with new taxes on large fortunes. From January 2027, a 1% annual wealth tax would apply to net wealth above 1 billion forints (about US$3.1 million), and 1.5% above 100 billion forints (about US$305 million).

The government expects about 15,000 people to be affected and 200 billion forints (about US$610 million) a year in revenue. The budget also cuts income tax for about 2 million people.

Child allowances would be doubled, from 12,200 forints a month (about US$37) for a one-child family. The minimum pension would rise from 28,500 to 120,000 forints a month (about US$87 to US$367), more than four times the current level.

On October 13, parliament voted 139 to 59 to remove the LGBTQ-related restrictions from the Orbán-era child protection law of 2021. The law had barred content portraying homosexuality or gender change to people under 18.

The 1956 Commemoration

On Friday, October 23, 2026, Hungary marked the 70th anniversary of the 1956 anti-Soviet uprising. Parliament held a commemorative session at which European Commission President Ursula von der Leyen spoke.

European Council President António Costa also travelled to Budapest, while French President Emmanuel Macron stayed away. The visits were widely read as a thaw between Brussels and Budapest after years of conflict under Orbán.

What Prediction Markets Say

On Polymarket, where US$103,053 has been traded, traders put the chance that Viktor Orbán is arrested by 31 December 2026 at 28.0%, and by 30 June 2027 at 48.5%. These prices are bets, not polls, and they imply no charge against Orbán.

They were read on 24 October at 5:30 a.m. ET. We found no comparable Kalshi market on Hungarian politics.

Why we show this: prediction markets turn real-money bets into a live probability that moves within minutes of the news, which is why investors, campaigns and newsrooms in the United States now follow them closely. We show them next to polls and official results, never instead of them.

What It Means for US Readers

For US readers, Hungary’s political shift matters for trade and investment in Central Europe. A more cooperative Hungarian government could ease tensions within the EU and NATO, where Hungary under Orbán often blocked consensus on Russia policy.

Hungary remains a NATO member, and its stance on Russia is expected to shift under Magyar’s pro-European leadership. American businesses with operations in Hungary may see changes in tax policy and regulatory enforcement as the new government pursues anti-corruption reforms.

US companies with operations in Hungary should watch the 2027 budget, which adds a wealth tax from January 2027. It also cuts income tax for lower earners and doubles child allowances.

What Is Not Known

The extent of Magyar’s practical control remains uncertain despite Tisza’s large majority. The durability of the new political order and the extent to which Orbán’s networks remain influential are still unclear.

A judge’s decision on pretrial detention for Matolcsy was not available at the time of writing. No final court judgments have been reported in the cases against him and other former officials.

A last €2.2 billion (about US$2.5 billion) in EU funds depends on further reforms, and no date has been set. No final settlement on the asylum fines has been reported.

Seat figures are from published election results, and the National Election Office’s own page could not be checked directly. Forint conversions use 327 forints per US dollar and euro conversions US$1.12, the market rates on October 24.

Frequently Asked Questions

Who is Hungary’s prime minister in 2026?

Péter Magyar is Hungary’s prime minister, sworn in on May 9, 2026. His Tisza party won 141 of 199 seats in the April 12 election, more than two-thirds.

What happened to Viktor Orbán?

Viktor Orbán lost the April 2026 election after 16 years in power and now leads the opposition Fidesz party. Fidesz-KDNP holds 52 seats in the 199-seat parliament.

What is Hungary’s relationship with the EU now?

The EU agreed on May 29 to release €16.4 billion (about US$18.4 billion) in frozen funds, and €2.2 billion still depends on reforms. Hungary also joined the European Public Prosecutor’s Office in July.

Sources: Euronews; Kormany.hu; The Daily Star; Politico Europe.