On Monday the government led by Péter Magyar announced the creation of a National Office for Asset Recovery and Protection. The office will sit within the Ministry of Finance and will cooperate with the anti‑corruption prosecutor’s office. Its legal basis is to be drafted in the weeks following the announcement.

The first assignment set for the office is to examine the wealth of businessmen associated with former prime minister Viktor Orbán, specifically Lőrinc Mészáros and his son‑in‑law István Tiborcz. Magyar indicated that the effort is intended to rebuild public confidence in institutions and is not driven by party politics. The office will also monitor the holdings of the Hungarian National Bank.

The International Monetary Fund has projected that Hungary’s budget deficit could rise above eight per cent of gross domestic product by the end of the year, a level not seen in post‑communist Hungary. The governing coalition has described higher wages and expanded public services as key priorities, while still confronting high inflation and energy costs that pressure household budgets.

A Medián poll conducted from 22 to 24 July for the newspaper HVG interviewed 1,200 people. Among respondents who said they would definitely vote, support for the governing Tisza Party fell to sixty‑eight per cent from seventy‑three per cent recorded in late June. In the same group, the opposition Fidesz was reported at twenty‑three per cent and the far‑right Mi Hazánk at seven per cent. When all respondents are considered, fifty‑seven per cent said they would choose Magyar’s party in a hypothetical election, a decline of three to five points from the prior month. The poll’s margin of error suggests the change is modest but marks the first noticeable decline since the coalition assumed power in early May. Political analysts linked the drop in support to public doubts about the pace of reforms, and critics noted that the new administration has not yet fulfilled promises on wage increases and lower energy prices.

Former prime minister Viktor Orbán addressed a crowd at the Bálványos Summer University, a venue he had not visited as a politician for sixteen years. During the speech he argued that democracy and the rule of law were being dismantled, accused the government of pursuing revenge politics and warned that its policies could cause economic difficulties that might turn voters against it by autumn. Orbán’s remarks did not mention the fiscal challenges highlighted by the IMF.

Peter Márton, deputy of Magyar, dismissed Orbán’s statements as political theatre and described the asset‑recovery drive as a concrete measure to correct past injustices and safeguard the state’s finances for future generations.

The European Commission has repeatedly warned that breaches of the rule of law could lead to reductions in EU funding and has proposed tying EU structural funds to compliance with democratic standards. Legal experts cautioned that the office will require clear statutory authority to avoid claims of politicised investigations. The European Court of Justice has previously ruled that Hungary’s judicial reforms violate EU standards. Opposition parties plan to contest the office’s mandate before the Constitutional Court, arguing it could be used for selective prosecution. Gábor Varga, parliamentary leader of Fidesz, described the initiative as a witch‑hunt presented as public interest.

European context and future steps

If the Hungarian office successfully recovers substantial sums, it could serve as a model for other EU countries dealing with entrenched corruption; Croatia and Romania have launched comparable asset‑recovery programmes. The European Trade Union Confederation called for any recovered assets to be used transparently for workers’ rights and public services. Negotiations over the EU’s NextGenerationEU recovery fund are seen as vital for financing social programmes without additional borrowing. The National Office for Asset Recovery is expected to release its initial list of assets under investigation in the coming weeks.