On Sunday night, after 16 years as Prime Minister Viktor Orbán conceded defeat in the Hungarian election. Rapturous relief filled the streets of Budapest and other parts of the country as people anticipated change. While Tisza, the winning party, has been scarce on policy details, the promise of a normalised relationship with Brussels is high on the agenda. Peter Magyar, president of Tisza and Prime Minister candidate, will face tough challenges, from boosting Hungary’s ailing economy to weakening Fidesz’s control of the media and judiciary, or to breaking down systemic corruption in public procurements.  

In the 2026 Liberties’ Rule of Law Report, published just two weeks ago, Hungary was again classified as a ‘Dismantler’, with our Hungarian member noting that, in many ways, the country even goes beyond this category, by ‘continuing to pursue ever more regressive laws and policies without any sign of change’. Hopefully, that change is now a real prospect. 

For more than a decade, the Hungarian government systematically dismantled every aspect of the rule of law, and in doing so, thereby largely shaping the toolbox that the European Union (EU) developed in response. However, the EU proved impotent in bringing about any real change, and Hungary held the Member States to ransom by blocking key EU decisions. Nonetheless, more egregious attacks may have been stalled, and a number of groundbreaking cases were handed down. 

So where do these actions now stand, what is at stake, and what might some of the next steps look like? 

Legal action

Here were several important cases before the Court of Justice of the European Union (CJEU), including the first explicitly rights-based infringement proceeding in the case of the 2017 NGO law. This led to a precedent setting judgment on freedom of association. Eventually, Hungary repealed the 2017 law but replaced it with another problematic text. Other cases, including the ‘Stop Soros’ case and the recently decided Klubrádió case, remain unimplemented, and several cases are still pending before the Court. These include the case on the ‘Propaganda Law’, which was expected in the coming weeks, and the case on the ‘Sovereignty Protection Office’. Hungary also initiated a case challenging the EU on the European Media Freedom Act. Will these decisions now be implemented and the offending laws and cases withdrawn? 

Budget conditionality

One of the more potent tools was the ability to withhold funds due to systemic rule of law failures. The European Commission deployed rule of law conditionality against both Hungary and Poland under slightly different circumstances. Under the Recovery and Resilience Facility (RFF), Hungary has until 31 August 2026 to complete all targets, including 27 rule of law ‘supermilestones’.  Hungary risks losing its entire €10.4 billion if it fails to comply. 

The European Commission has been criticised for politicising decisions to release funds, and in the case of Hungary, it was taken to the CJEU by the European Parliament. In February, the Advocate General recommended annulling the Commission’s 2023 decision to free up €10 billion of EU funds. The final decision of the CJEU was expected in the coming months. This will now be a test both for the new government to comply with the milestones and for the Commission to ensure clarity and transparency in its decisions to release funds.  

Article 7 

The most frustrating of all the tools, has been the Article 7 process, previously seen as the untouchable ‘nuclear option’, where, eventually, a Member State would lose its voting rights. The European Commission never took the step to recognise the systemic nature of Hungary’s rule of law breakdown, and it was left to the European Parliament to call a vote. The process was initiated in 2018, but to date, the Member States have not issued recommendations to the Hungarian government under Article 7(1), nor taken a vote under Article 7(2) to suspend Hungary’s voting rights. Numerous closed-door hearings have been held with little visible impact. As in Poland, the question will now arise as to when Hungary has demonstrated sufficient reforms to close the process. Péter Magyar stated at his first international press conference that he considers it of paramount importance to rebuild the system of checks and balances without taking steps that would be contrary to the rule of law. 

The stakes are high for both the new Hungarian Government and the European Commission to initiate reforms and ensure a transparent process of assessment. Ursula von der Leyen, President of the European Commission, and Péter Magyar, candidate for Prime Minister, agreed in the days following the election to cooperate closely in the interest of Hungary and the European Union. According to the position of the European Commission, time should be given to Péter Magyar to take office and present concrete proposals. After a long struggle to challenge the continuous backsliding, civil society will be watchful of the next steps.