Hungary's new government, headed by Prime Minister Peter Magyar, officially took office earlier this week, ending the 16-year rule of Viktor Orban. Ministers have already presented the main priorities of the new government, which envisage large-scale changes in the economy, relations with the European Union, energy and the political system, summarizes "Reuters".
The Magyar government plans to build a new economic model based on higher productivity, a skilled workforce and a predictable business environment. Finance Minister Andras Karman said that Orban's excessive public procurement has increased the budget deficit and distorted the economy.
The cabinet intends to reduce the budget deficit to 3% of GDP by 2030, from an expected 7% this year. The 2027 budget will be submitted by the end of October, and public spending will be scrutinized to curb corruption and embezzlement.
The new government also promises to restore relations with the European Union and unlock EU funds frozen over disputes over the rule of law during Orban's rule. Budapest hopes to receive 6.4 billion euros in grants and 3.9 billion euros in loans from the European Recovery Fund after the pandemic.
Cohesion policy funds will be directed at education, healthcare, housing policy and energy efficiency. The government is also planning a public debate on the adoption of the euro, with the aim of Hungary meeting the criteria for eurozone membership by 2030.
Justice Minister Márta Gérog said that Hungarian legislation must once again meet European and international legal standards. The cabinet also intends to amend the controversial "child protection law", which restricts access to LGBT content, following a ruling by the European Court of Justice in April.
In energy, the new government will review the financing and implementation of the Paks NPP expansion project, awarded in 2014 without a tender to the Russian company "Rosatom". At the same time, Budapest plans to diversify energy supplies, although it intends to maintain access to both oil pipelines to the country.
Foreign Minister Anita Orbán stressed that the country's main alliances remain the European Union and NATO. According to her, the new government wants to restore trust in Hungary, which has been eroded in recent years.
The cabinet will also seek to restore cooperation in Central Europe, especially in relations between Poland and Hungary. At the same time, Budapest says it will maintain "equal and transparent" relations with Russia, while the United States will remain a key ally in the security and economic spheres.
The new government has confirmed that it will not send weapons or soldiers to Ukraine, will not participate in the EU's general loan of 90 billion euros and does not support accelerated membership of Ukraine in the EU. According to Budapest, Kiev must go through the standard accession procedure, after which Hungary will hold a mandatory referendum on the issue.
Among the anti-corruption measures is the creation of a National Asset Recovery and Protection Office, which will search for funds allegedly lost or embezzled during Orbán's rule. The new institution is due to start work on July 1.
The government also plans to open the archives of the communist secret police by October.
In tax policy, the cabinet plans to introduce a wealth tax for the highest earners and review tax breaks. VAT on prescription drugs, firewood, fruit and vegetables will be reduced, and tax breaks will be introduced for people with low incomes.
Sectoral taxes on banks, energy companies, retail chains and telecoms, introduced under Orbán, will remain in force for the time being.
As part of the institutional changes, the finance, justice, education and health ministers will be given the right to veto bills before they are submitted to parliament, in a move aimed at limiting the prime minister's power. The cabinet also intends to change electoral law so that no one can serve more than two terms as prime minister.