How Hungary changed its Constitution to unlock billions in EU funds
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How Hungary Amended Its Constitution to Receive Billions from EU Funds

Hungary has embarked on a sweeping revision of its Constitution following the change in government, launching a reform aimed at dismantling the institutions established during Viktor Orbán’s years in power. At the same time, Budapest has achieved its first results in negotiations with Brussels: the European Union has already approved the release of up to 10 billion euros from previously frozen funds.
Arina Codreanu Reading time: 3 minutes
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Tamás Szujok

Tamás Szujók. Photo by Dénes Erdős / AP

And today, July 17, marks the deadline by which Hungarian President Tamás Szujók must either sign the 17th amendment to the Constitution or exercise his veto power. If he does not do so, the document will automatically take effect.

The amendments were adopted by the National Assembly on July 13 at the initiative of Prime Minister Péter Magyar’s ruling “Tisa” party. One hundred thirty-nine deputies voted in favor of the document, six voted against it, and another 54 parliamentarians did not participate in the vote.

The reform is part of the government’s “Purge by Fire” campaign, aimed at dismantling the governance mechanisms established during Viktor Orbán’s 16-year tenure in power.

The “Anti-President” Amendment

According to RBC, one of the most controversial provisions of the amendment was the early termination of the term of office of incumbent President Tamás Szujók. Unlike the current Constitution, which provides only for an impeachment procedure, the new document allows parliament to elect a new head of state for a term of up to five years—until the new Constitution takes effect.

Szujok refused to resign voluntarily and called the changes unconstitutional, the publication notes. In his view, the amendment is not aimed at reforming the institution of the presidency, but rather at targeting a specific individual. The president sought a legal opinion from the Council of Europe’s Venice Commission and the Hungarian Constitutional Court; however, the court’s consideration of the matter was effectively halted.

The amendments also affect the judicial system. The term of office for Constitutional Court justices is reduced from 12 to 9 years, and an age limit of 70 is introduced. The terms of office for the heads of key judicial bodies are reduced from six to nine years. In addition, a National Directorate for the Protection and Recovery of State Assets is being established, which will be tasked with identifying the illegal use of budget funds and returning them to the state.

Another significant change is the limitation of the total term of office for members of the National Assembly to three terms, or 12 years. According to estimates by the Hungarian publication Telex, if this provision is applied as early as the next election, approximately 25–30 representatives of Viktor Orbán’s FIDESZ–KDNP bloc will lose their eligibility for reelection. FIDESZ itself called the reform “the end of constitutional democracy and the beginning of autocracy.”

Earlier, in June, Parliament had already approved the 16th amendment to the Constitution, limiting a single person’s tenure as prime minister to two four-year terms, counting from 1990. This provision legally precludes Viktor Orbán from returning to the post of head of government.

The government of Péter Magyar makes no secret of the fact that the constitutional reform is linked to meeting the European Union’s requirements regarding the rule of law. It was precisely Brussels’ concerns regarding the independence of the judicial system and anti-corruption mechanisms that led to the freezing of tens of billions of euros in European funding for Hungary.

The first billions have already been released

The first results have already followed. On July 10, the EU Council approved the release of up to 10 billion euros through the Recovery and Resilience Facility. Hungary will be able to receive 6.5 billion euros in grants and another 3.5 billion euros in the form of preferential loans.

In total, the European Union had previously frozen approximately 35 billion euros earmarked for Hungary. In late May, the European Commission decided to unfreeze roughly 16 billion euros, citing Budapest’s progress in implementing reforms. In addition to the Recovery Fund, the country will receive 4.2 billion euros from the Cohesion Fund, while the disbursement of another 2.2 billion euros will depend on the fulfillment of new commitments by the end of August.

As part of its anti-corruption reform, the government has also expanded the powers of the Integrity Office, which oversees the use of European funds, and established a new agency for the recovery of state assets.

Crisis or Mádjár’s Legacy: What Exactly Is Szujók Fighting Against?

Despite Brussels’ positive reaction, certain elements of the reform have drawn criticism. European human rights organizations have questioned the term limits for members of parliament, deeming them politically motivated. According to the Financial Times, some in the Hungarian business community also fear that Mályari’s cabinet is focusing more on dismantling Orbán’s legacy than on addressing the country’s economic problems, where the budget deficit, according to government estimates, already exceeds 8% of GDP.

At the same time, on a number of foreign policy issues, Hungary’s new leadership is maintaining the cautious approach of the previous government. In June, Budapest opposed accelerating negotiations on Ukraine’s and Moldova’s accession to the European Union and also refused to join the NATO allies’ agreed-upon program of military aid to Ukraine.


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