The outdated infrastructure in Hungary is becoming a political risk for Viktor Orbán, writes FACS. The EU has cut billions in stimulus funds for the country. The consequences of this are becoming increasingly clear.
Many of the locomotives and carriages of the Hungarian Railways are outdated, most were manufactured in the former GDR in the 1970s and are constantly in need of repair, writes “Frankfurter Allgemeine Zeitung“ (FAC). The purchase of more than 100 modern electric locomotives announced three years ago was suddenly canceled in 2023. The government decided to rely on leasing purchases instead, but this too has been delayed. And the renovation of the outdated wagons is progressing very slowly due to a lack of funds.
Infrastructure in a deplorable state
A number of facilities and a large part of the railway network in Hungary are in a deplorable state, the German publication continues. The consequences of the reduced or frozen EU funds are being felt in the transport infrastructure. FAZ recalls that the Hungarian government of Prime Minister Viktor Orbán has been in a clincher with Brussels for years, as it violates EU rules on the rule of law. And Hungary is among the largest net recipients of money from Brussels.
The lack of investment in infrastructure is visible everywhere, FAZ explains. Projects in the field of road construction, railways and water supply are being delayed or canceled. This prevents productivity from increasing, especially in structurally weaker regions. Economist Sándor Richter points out to the German publication that public investments were previously largely financed with European funds. But last year these investments were reduced by a quarter compared to 2023. In the first half of 2025 they fell by another 15 percent.
According to estimates by the European Bank for Reconstruction and Development, the growth of the Hungarian economy this year will be only 0.5 percent, i.e. it is almost a recession. As an open and highly export-oriented country, Hungary is particularly affected by global economic turbulence. “Against this background, the freezing of 18 billion euros by the EU has painfully affected the Hungarian economy. A major pillar of economic development is now falling away“, Philipp Hausmann, deputy chairman of the Eastern Commission of the German Economy, told the FAZ. “Countries like Poland or the Czech Republic, which continue to benefit from EU stimulus funds, are currently experiencing much more sustainable economic development“, the expert adds.
Construction, education, social work
Construction, which until a few years ago was an important driver of the economy, is also suffering, writes FACS. Public investment in this area has dropped noticeably in recent years. Many of the infrastructure measures in the past were co-financed by the EU. Anyone who travels through Hungary also sees the shortcomings of the road network. Hundreds of secondary roads are in poor condition, including in Viktor Orbán's home region. But past the luxurious Hotvanpusta estate, bought and modernized by Orbán's father, the asphalt is now perfect. Other parts of the country, however, are lagging behind, despite decades of funding from Brussels.
Two of Hungary's eight regions are among the poorest in the EU, the German publication writes. The stimulus funds are mainly intended for central infrastructure and projects favored by the government, while investments in education, social development or long-term innovation are neglected, the analyses show.
The Austrian “Neue Zeit“ reports that major problems also stand out in the field of public transport - connections are unreliable, especially in rural areas. Trains and buses are often overcrowded or in very poor condition, delays are constant. This poor infrastructure makes it difficult for many Hungarians, especially from smaller towns, to go to work or to access health or educational institutions. Poor transport connections lead to the isolation of certain areas, which negatively affects the economy and the quality of life of Hungarians.
Corruption and lack of transparency
The FAC, in turn, cites data from the non-governmental organization “Transparency International“, according to which Hungary ranks last among all EU member states in terms of the corruption perception index. The European Court of Auditors has repeatedly criticized Hungarian practices in public procurement. The Organization for Economic Cooperation and Development (OECD) also appeals for more transparency.
It is in this situation that Hungarian Prime Minister Orban is trying to score points before the elections next spring. This time he has a serious competitor - the pro-European candidate Peter Magyar, who has a good chance of ending the decade-long era of Viktor Orban's rule. This is causing the government to loosen budget discipline and make election gifts, FACS points out. For the same reason, attempts are being made to improve the transport infrastructure. This also fits into the boastful promise of the cabinet, made recently: “By 2035, Hungary will have the best road infrastructure in the whole world“. But the road to get there is still too long, FACS comments.