By Ishtwan Kamel
16/03/2025
As Hungary’s corruption problem deepens, it is the economy and its citizens who continue to bear the brunt of these scandals, with the country’s international standing taking a significant hit.
Hungary’s economy is facing severe challenges, with GDP growth stagnating at just 0.5% in 2024. Prime Minister Viktor Orbán’s government has been forced to raise taxes and the central bank’s interest rate, now the highest in the EU at 6.75%. Meanwhile, the forint continues to lose value against both the euro and the dollar, and inflation is soaring, causing mounting social unrest.
In light of these issues, Hungary is in dire need of EU financial assistance, with over €1 billion expected from special funds. However, these funds have been frozen by the European Commission as of January 2025, following accusations that the Hungarian government is systematically undermining the rule of law, suppressing press freedom, and allowing corruption to spiral out of control. The country ranked as the most corrupt in the EU for two consecutive years, matching corruption levels in countries like China and Cuba.
Corruption scandals have been a major focus in both Hungarian and European media. One such case involves Nehez Kovek Kft., a transportation company owned by Viktor Orbán’s father, Győző. In 2018, the company received nearly €1 million from a firm working on railway repairs near Lake Balaton. In 2021, the company was sold to Lajos Bihari, an Orbán ally, and was later dissolved under suspicious circumstances.
Another major scandal surrounds István Tiborcz, the prime minister’s son-in-law, who has enjoyed significant government-backed support for his businesses in luxury real estate and logistics. In 2023, his BDPST Group completed the Dorothea Hotel in Budapest with a €105 million loan from MBH Bank, controlled by Orbán’s close friend, Lőrinc Mészáros. The hotel was later listed as a recommended accommodation for European dignitaries attending the European Political Community Summit in Budapest.
In response to the growing corruption, the U.S. Department of the Treasury imposed sanctions on Viktor Orbán’s chief of staff, Antal Rogán, barring him from entering the U.S. and freezing his assets. Rogán, who controls much of Hungary’s media landscape, has been accused of funnelling EU funds to Orbán’s allies, further consolidating power within the ruling Fidesz party.
Meanwhile, Hungary’s ties with Russia have also raised concerns. Defense Minister Kristóf Szalay-Bobrovniczky, a close Orbán ally, has been linked to controversial business dealings, including a deal for railway carriages between Hungary, Russia, and Egypt. These dealings have fuelled suspicions of corrupt cooperation between Hungarian elites and Kremlin-affiliated businesses.
In addition, Hungary has been accused of meddling in the politics of other EU nations. In 2022, Hungary’s MKB Bank, owned by Orbán’s ally Mészáros, provided a €10.6 million loan to France’s far-right party, Rassemblement National, to support its election campaign. The move raised concerns of interference in France’s political affairs and further deepened Hungary’s reputation as a supporter of pro-Russian, anti-EU movements.
Hungarian opposition politicians assessed this move as an unjustified image risk for the whole of Hungary, which could theoretically be accused of interfering in France’s internal affairs. Nevertheless, V. Orban personally ordered this financial transaction, ensuring that the Hungarian central bank would not be involved in verifying the legality of the transaction. It is possible that in this way he wanted to demonstrate his loyalty to V. Putin, who, with the help of an extensive corruption web, has turned the Hungarian ruling elite into his obedient satellites. In general, as a result of the spread of corruption in the country under the personal patronage of V. Orban, the national economy and ordinary citizens of Hungary suffer!