Hungary is enduring an unprecedented heatwave that has driven the Danube to its lowest level in living memory, measured in millimetres. The reduced river flow is curbing the cooling capacity of the Paks nuclear power station, which supplies roughly 45 % of the country’s electricity. Officials have kept one turbine running at full capacity while the remaining units operate at reduced output, warning that a full shutdown would force greater reliance on imports at a time when European electricity markets are already strained.

Government Response to the Energy Crisis

On 29 July Prime Minister Péter Magyar addressed the nation and warned that the combination of drought and high temperatures could necessitate a partial shutdown of Paks. Since that address he has issued daily video updates urging both industry and households to cut consumption. Surveys show a noticeable decline in household electricity and water use, and several hundred large companies, including the state railway, have voluntarily reduced or rescheduled power‑intensive activities.

In its 87th day, the new Tisza government introduced emergency energy‑saving measures, challenged a previously signed real‑estate contract in Budapest’s Zugló district and reshuffled senior staff at public television. The administration has drafted an energy‑development plan valued at nearly 870 billion forints, proposing expanded storage, grid modernisation and new wind and geothermal projects.

Opposition leader János Bóka of Fidesz criticised the government for failing to anticipate the drought, while the Tisza coalition described the weather event as unprecedented.

Media Independence Under Scrutiny

A separate controversy has unfolded at the state news agency MTI. A 500‑page dossier compiled by MTI journalists documented systematic editorial interference under previous governments, including pre‑written headlines and blacklists of foreign outlets. The dossier also contains a memo from a former foreign‑ministry spokesperson directing a Moscow correspondent to repeat a Hungarian press release without question.

In early July the regular news bulletin on public channel M1 was suspended and replaced with a film schedule and a scrolling ticker. Public‑media management announced that the revived news programme “Híradó” would return in August with Gábor Hajdú as editor‑in‑chief and Miklós Borsa as anchor, both of whom have previously worked for media outlets linked to the governing party. Journalists, civil‑society groups and opposition parties condemned the appointments as a move toward partisan state broadcasting.

Prime Minister Magyar made a brief comment that was interpreted as tacit support for the hires. Within 24 hours public‑media officials cancelled the appointments, stating that the news service must restore society’s trust and meet society’s needs. Analyst Gábor Török warned that prime‑ministerial influence over public‑television leadership could turn the outlet into a de‑facto government mouthpiece.

Real‑Estate Contract Dispute

On 3 August the prime minister announced that the state would withdraw from a real‑estate contract in the Zugló district, known as Zugló City Centre, which involved seven office towers and the Zenit Corso shopping centre. The original contract was capped at 244 billion forints, but the final cost exceeded 254 billion plus VAT, and the state had already paid about 315 billion forints.

The Tisza administration opened a legal and financial audit and concluded that developer Attila Balázs of Bayer Construct failed to meet contractual deadlines. Contract terms require repayment of advance payments, a double‑deposit refund, a 10 % penalty on the net maximum purchase price and additional damages. The asset‑recovery effort is presented as reclaiming funds allegedly diverted into the National System of Cooperation.

Forbes reported that Balázs’s construction firm earned profits of over 20 billion forints in 2024 and has received numerous state contracts since 2016, including the Puskás Arena and major road works. Opposition parties welcomed the move, while some business groups warned that aggressive legal action could deter foreign investment.

Presidential Election Looms

The Hungarian parliament is scheduled to elect a new president on 11 August. The Tisza parliamentary group suggested that deputy speaker Anikó Hallerné Nagy, currently acting as speaker, arrange the vote. The constitution requires a two‑thirds majority in a secret ballot and a candidate must have the support of at least 40 MPs. Only the Tisza coalition and the 44‑member Fidesz‑KDNP bloc have enough seats to nominate a candidate.

Fidesz announced it will boycott the election, claiming the removal of former president Tamás Sulyok was unconstitutional and that there is no legitimate vacancy. Prime Minister Magyar posted photographs with three possible presidential candidates – historian Ignác Romsics, lawyer Botond Fülöp and former Supreme Court president András Baka – without naming a formal contender. The presidency is largely ceremonial but carries symbolic significance.

European Context

The EU is confronting its own energy‑security challenges, and Hungary’s reliance on the Paks plant, which uses Russian fuel, places it at the centre of EU diversification debates. European Commission concerns about Hungary’s media pluralism and state aid rules intersect with the energy and media cases. The Commission’s Directorate‑General for Competition will monitor the Zugló dispute as a potential precedent for handling alleged procurement corruption, while the European Parliament’s Committee on Culture and Education has called for a review of funding mechanisms for public broadcasters to ensure editorial independence.

Trade unions have urged the government to protect vulnerable groups from electricity price spikes and to provide a clear renewable‑investment roadmap.