Business news from Ukraine

Business news from Ukraine

Election of András Baka as President of Hungary Consolidates the Political Transition to a Post-Orbán Era – Poznii

The Hungarian parliament has elected former Supreme Court president András Baka as the country’s new president, marking another important stage in the restructuring of Hungary’s political system following the end of Viktor Orbán’s 16-year rule.

On 11 August, 140 MPs voted for the 73-year-old lawyer, while six voted against. Representatives of the opposition Fidesz party did not participate in the vote, protesting against the early termination of the powers of the previous president, Tamás Sulyok. Baka is due to officially take office on 19 August.

Baka’s election is primarily of political and institutional significance. The president of Hungary does not head the government or determine the country’s economic or foreign policy, but can serve as a constitutional counterweight to the parliamentary majority and the cabinet. This function is particularly important now, as Prime Minister Péter Magyar’s Tisza party holds a constitutional majority in parliament and is carrying out sweeping changes to the institutions shaped under Orbán.

Baka fits well into this political arrangement. From 1991 to 2008, he served as a judge at the European Court of Human Rights, and in 2009 parliament elected him president of the Supreme Court of Hungary. His mandate was terminated early in early 2012 after he publicly criticised the Orbán government’s judicial reforms. The European Court of Human Rights subsequently found violations of his right of access to a court and freedom of expression.

Therefore, Baka’s return to one of the country’s highest public offices almost 15 years later has clear symbolic significance. It demonstrates the new authorities’ intention to distance themselves from the institutional model of the Orbán era while simultaneously making the independence of the judiciary one of the central themes of the political transformation.

“For Hungarian society, this is much more than an ordinary change of president. After sixteen years of dominance by a single political force, any large-scale restructuring of state institutions will inevitably be perceived differently by society. For supporters of change, this is an opportunity to restore the system of checks and balances, while for a significant proportion of Fidesz supporters, what is happening may look like political revenge by the new authorities,” said Oleksandr Poznii, an expert at the Experts Club analytical centre and co-founder and director of the Active Group research company.

According to Poznii, the key test will be the ability of the new institutions to demonstrate genuine independence from Péter Magyar’s government.

“Baka’s main task is not to become the president of the victorious party. If the new head of state can truly distance himself from the government and act as an arbiter between different political groups, this will be an important signal to society. Otherwise, Hungary risks seeing not the dismantling of the former model of concentrated power, but merely a change in the political force controlling that model,” Poznii noted.

The sociologist also draws attention to the high degree of political polarisation in Hungarian society. In such a situation, the significance of the presidential office is determined not so much by the scope of its formal powers as by the trust that different groups of the population place in the head of state.

“In countries with strong political polarisation, symbolic institutions can be far more important than the text of the constitution might suggest. The president may not manage the economy or foreign policy, but he can either reduce the level of conflict in society or, conversely, become another participant in that conflict. Therefore, the main measure of Baka’s success will not be the number of laws he blocks, but whether he can be perceived as the president of all Hungarians,” Poznii emphasised.

Following his election, Baka himself stated that under the previous authorities the system of checks and balances had effectively ceased to function, but stressed that political change should not turn into revenge against supporters of the former government. He also declared his intention to represent citizens with different political views.

Hungary is a parliamentary republic, meaning that the real centre of executive power is located not in the presidential palace, but in the government.

Under the Fundamental Law of Hungary, the president is the head of state, embodies the unity of the nation and is responsible for safeguarding the democratic functioning of state institutions. At the same time, the president has no executive power of his own and does not head the ministries.

Nevertheless, his powers extend beyond purely ceremonial functions. The president signs laws adopted by parliament and, before signing, may return a law to MPs once for reconsideration. If he considers a document to be contrary to the Fundamental Law, he may refer it to the Constitutional Court.

Following parliamentary elections, the president proposes a candidate for prime minister to parliament. He also formally appoints ministers upon the recommendation of the head of government, performs a range of personnel and representative functions, and represents the Hungarian state in foreign relations.

Thus, the head of state can delay certain decisions by the parliamentary majority or initiate a constitutional review of them, but cannot independently determine the country’s political course.

The prime minister, by contrast, is the effective head of the executive branch. The government is the principal body of executive power and public administration, while the prime minister determines its overall political course. It is the prime minister who forms the government team, directs the work of the cabinet and, through the parliamentary majority, implements the principal budgetary, economic, social and foreign policy decisions.

Therefore, the key political figure in Hungary remains Péter Magyar, who came to power following Tisza’s victory in the April parliamentary elections. The party won two-thirds of the seats in parliament, ending Orbán’s 16-year period of uninterrupted rule.

After coming to power, Magyar began seeking the replacement of the heads of a number of state institutions associated with the previous system of government. One of the most notable episodes was the early termination of President Tamás Sulyok’s term of office.

For the new authorities, Baka’s election is particularly symbolic because of his long-standing conflict with the Orbán system. The former president of the Supreme Court is effectively returning to the highest level of state politics after the defeat of the political force under which he lost his judicial post.

At the same time, this is precisely where one of the main risks facing Hungary’s new political system emerges. Tisza holds a constitutional majority and therefore has exceptionally broad powers to change laws and institutions. The new authorities must consequently dismantle the mechanisms created under Orbán while simultaneously proving that they are not replacing them with their own party control.

This is the paradox of Hungary’s new political arrangement: Magyar has obtained an exceptionally strong position thanks to his parliamentary majority, while Baka is expected to embody a limit on the excessive concentration of power.

For Ukrainian audiences, Hungary’s transformation also has foreign policy significance. Following Orbán’s defeat, Budapest’s position on Ukraine has become less confrontational, although Magyar does not present himself as an unconditional supporter of Kyiv and continues to link some bilateral issues to the situation of the Hungarian minority in Transcarpathia.

Therefore, the ultimate criterion for determining whether Hungary has entered a new political era will be not only the departure of officials from the Orbán era, but also whether the new authorities can establish a system of institutions capable of functioning independently of whichever party controls parliament and the government.

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New President Has Been Elected in Hungary

András Baku has become Hungary’s new president, according to Hungarian media reports.

“On Tuesday, the Hungarian Parliament elected 73-year-old lawyer and former Chief Justice of the Supreme Court András Baku as the country’s new president,” the reports state.

It is noted that 140 lawmakers voted in favor of his candidacy, while six voted against it. Representatives of the former ruling coalition, Fidesz—the Christian Democratic People’s Party—had announced in advance that they would not participate in the vote.

Hungary’s new Prime Minister, Péter Magyar, has repeatedly stated since his election in May that he intends to reform the Hungarian government; in particular, he has sought the resignation of President Tamás Szujók. Magyar believes that Szujók was not fulfilling his role and was serving the interests of former Prime Minister Viktor Orbán and his government.

Szujok refused to step down voluntarily, stating that he saw neither constitutional nor legal grounds for doing so. Later, in July, the Hungarian parliament approved a package of constitutional reforms that, among other things, provided for the president’s resignation. As a result, last week Szujok signed the constitutional amendments and stepped down from his post.

Magyar nominated renowned Hungarian chess grandmaster Judit Polgár for the position of the country’s new president, but she declined the offer.

The president in Hungary performs mainly ceremonial functions. The government is headed by the prime minister.

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Hungary to Allocate 9.8 Bln Euros for Railway Modernization

According to “Serbian Economist”, the Hungarian government plans to allocate 3.55 trillion forints, or about 9.8 billion euros, by 2035 for the modernization of the national railway network.

Hungarian Prime Minister Péter Magyar and Minister of Transport and Investment Dávid Vitézi presented the program on July 22 at the Rakospalota-Újpest station in Budapest. Authorities are calling it one of the largest railway projects in the country’s history.

The program is designed to be implemented in several phases. Its main objectives will be to improve the reliability of transportation, reduce travel times, reconstruct tracks and stations, modernize the rolling stock, and develop international rail routes.

The government intends to ensure competitive rail service to all administrative centers in Hungary, modernize regional lines, and expand commuter service around Budapest and other major cities. Specific areas of focus will include the development of freight transport, the establishment of a rail link to Budapest Airport, and the integration of national and urban transportation systems.

It is planned to allocate 1.1 trillion forints from EU Cohesion Funds and 700 billion forints from the European Recovery and Resilience Facility (RRF) to implement the program. An additional 400 billion forints is planned to be raised through loans from the European Investment Bank, with a similar amount to be secured through concession projects. Approximately 950 billion forints will be allocated to projects under the next EU budget cycle for 2028–2034.

The government plans to purchase at least 35 new InterCity trains and 42 commuter electric trains, as well as begin renovating the country’s ten busiest train stations. The average age of MÁV trains and HÉV commuter trains is currently about 43 years, and 42% of the rail network is subject to significant speed restrictions.

On major routes, the government aims to increase the average speed to 100 km/h. Certain sections are planned to be upgraded to accommodate trains traveling at speeds of 160–200 km/h.

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Belgrade–Budapest high-speed train may begin service in August or September

According to Serbian Economist, passenger service on the high-speed rail line between Belgrade and Budapest is scheduled to begin within the next one to two months, Hungarian Prime Minister Péter Magyar announced at a press conference on July 16. Thus, provided the new deadlines are met, the first trains could begin running in August or September. However, Hungarian authorities have not yet specified an exact launch date.

In the coming days, Hungarian Minister of Transport and Investment David Vitézi is scheduled to visit Serbia. During talks with representatives of the Serbian government, the parties plan to coordinate the operation of signaling systems and equipment that ensure traffic safety on the cross-border section.

The launch of passenger trains has already been postponed several times. The main issue has been the certification of the European Train Control System (ETCS) installed on the Hungarian section of the line. Inspections conducted in the spring revealed malfunctions that could have compromised train safety at speeds of up to 160 km/h.

The reconstruction of the railway line has already been completed, and on February 27, 2026, freight traffic began on the Hungarian section. The first cross-border freight train traveled from Budapest through Kelebia and Subotica toward Novi Sad. Passenger service has been postponed until the testing and certification of the signaling systems are completed.

The Belgrade–Budapest high-speed rail line is one of the largest joint infrastructure projects between Serbia, Hungary, and China. Once fully operational, it is expected to significantly reduce travel time between the two capitals and strengthen Serbia’s transport links with Central Europe.

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Hungary Has Launched Investigation Into Former Foreign Minister Szijjártó’s Ties to Russia

The Hungarian government has launched an investigation into former Foreign Minister Péter Szijjártó’s contacts with Russian authorities, Prime Minister Péter Magyar announced on July 16.

According to him, the case file contains classified documents from the Ministry of Foreign Affairs and other agencies. However, it is not yet known which agency is conducting the investigation, whether a criminal case has been opened, or whether Szijjártó is considered a suspect.

The investigation was prompted by reports that the former minister may have briefed Russian Foreign Minister Sergey Lavrov on the progress of negotiations within the EU. Szijjártó denied the allegations and stated that he had not passed on classified information to Moscow.

The investigation coincided with his departure from politics. On July 15, Szijjártó announced that he was resigning his parliamentary seat to take a leadership position at the Chinese company BYD. The prime minister called this a conflict of interest, since while serving as minister, Szijjártó had been involved in providing state support to the company.

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Hungary Has Lifted Ban on Ukrainian Media

Hungary has lifted the ban on Ukrainian media previously imposed by the Fidesz party after coordinating this matter with the Ukrainian Ministry of Foreign Affairs and representatives of the Ukrainian national minority, who participated in the decision-making process.

“Together with the Ministry of Foreign Affairs, we have lifted the ban on Ukrainian media that was previously imposed by the Fidesz party.” In 2025, Fidesz unilaterally banned Ukrainian publications in Hungary in response to Ukraine’s blocking of those Hungarian publications that failed to adhere to journalistic ethics and instead spread Russian propaganda and stoked panic about a third world war,” said Zoltán Tarr, Hungary’s Minister of Social Affairs and Culture, in a post on Facebook.

The post also notes that “media outlets spreading Russian propaganda should not be confused with the genuine, independent press, either in Hungary or internationally.”

“The ousted government constantly worked to sow discord, and the blocking of these publications served no other purpose. Our task—to foster good-neighborly relations, which will help improve the situation of Hungarians abroad—is a common national cause. By following this path, thanks to our previous historic agreement, we have achieved more in a few weeks than the ousted government did in 16 years,” he noted.

It is also reported that the decision to lift the block was coordinated with Liliana Greksa, a representative of the Ukrainian national minority. After the decision was made, she stated that it is important for the Ukrainian community and refugees in Hungary to have access to news about their country in their native language.

 

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