Expectations for the future of Hungary

Hungarian Prime Minister Peter Magyar speaks at the Parliament building in Budapest, May 9, 2026. (Photo: XINHUA)

However, after the glory of the "laurel wreath" comes a series of challenges that the new Prime Minister Peter Magyar will have to overcome, from difficult problems of promoting economic growth and social stability to the challenge of reshaping relations with the European Union (EU).

Hungary faces challenges, first and foremost, stemming from a weak economy, a high budget deficit, low productivity, and declining public investment. The Hungarian economy is projected to grow by only 0.3% in 2025, while the budget deficit is expected to approach 6% of Gross Domestic Product (GDP) in 2026.

Furthermore, Hungary also faces serious repercussions from the current energy crisis, as the country is heavily dependent on imported crude oil and natural gas. Any fluctuations in the global energy market can have negative impacts on the economy. According to analysts, the new government will have to overcome many obstacles to simultaneously address three major issues: controlling inflation, maintaining growth, and ensuring social security.

Against this backdrop, one of Budapest's top priorities is strengthening its economy. Prime Minister Peter Magyar stated that the country will transform its economic model towards focusing on technological innovation, increasing productivity, attracting high-quality investment, and improving the business investment environment. Experts expect these measures to help Hungary reduce its budget deficit without imposing harsh austerity measures, thereby expanding the development space for key industries and attracting high-quality foreign investment.

Besides domestic issues, the new Hungarian government also has to ease long-standing tensions in its relationship with the EU. This is a necessary step to attract EU funding for the country's development. Over 10 billion euros in EU aid to Hungary has been "frozen" for many years.

This amount is particularly important, providing additional budgetary resources for Budapest to increase investment in the construction, energy, and transport sectors, as well as support small and medium-sized enterprises. However, due to disagreements between the previous Hungarian government and the EU regarding the rule of law and budget allocation, the funds have yet to be disbursed.

In the latest effort, leader Peter Magyar traveled to Brussels (Belgium) to discuss with European Commission President Ursula von der Leyen, seeking to remove obstacles in the cooperation process and encourage the EU to disburse aid to Budapest. Hungary's efforts have received a positive response from the EU.

Given the domestic and foreign challenges facing Hungary, the road ahead for Prime Minister Peter Magyar's government may be fraught with difficulties. However, the government's clear development directions and decisive actions provide a basis for Hungarian people to believe in an increasingly prosperous future.

Bao Chau

Source: https://nhandan.vn/ky-vong-vao-tuong-lai-cua-hungary-post964670.html