Hungary to strengthen ties with the EU

TISZA Party wins the elections

TISZA Party won the 2026 general elections in Hungary with a landslide, and they are busily preparing for the first meeting of the new Assembly and the formation of the government. The first is expected before May 12, and the second before the end of May. Nominees for ministerial positions are being announced, and the new government will have seasoned experts in their respective fields among its ministers.

Hungary stays in the EU

One of the most important promises of the TISZA campaign was to strengthen ties with the EU and Western allies. Péter Magyar (head of TISZA Party and PM to be) emphasized Hungary’s commitment to staying in the European Union and working more closely with EU institutions, such as EPPO (European Public Prosecutor’s Office). Campaign promises also included a restructuring of institutions that would improve checks and balances in Hungary, which is essential for EU funds to become available to Hungary again.

Through the reduction of the risk of Hungary leaving the EU, Hungary has also reduced the risk of investment in Hungary, relevant for both EU and non-EU based parent companies.

EUR to become the official currency of Hungary

The introduction of the euro was another important promise of the campaign. There is a long way to go, but Péter Magyar said that a date in 2031 or 2032 seems realistic. András Kármán, Minister of Finance to-be added that Hungary might be able to meet the conditions as early as 2030. Reducing the national debt from 5.5% to 3% of GDP seems feasible on that timeline, even if it requires strict budgetary discipline. Additionally, the introduction of EUR enjoys broad public support in Hungary, the broadest in the region.

The introduction of the common European currency will also require a change to the Constitution of Hungary, which currently includes a reference to the official currency, which is the Hungarian Forint – for now. However, the two-thirds supermajority of the TISZA government will allow them the power required to make that change.

Positive international feedback

International markets have reacted positively to the election results and to the prospect of Hungary strengthening ties with the EU. The EUR exchange rate has been steadily under HUF 370 since the elections, and it is expected to reach as low as HUF 350 by the end of Q2. At the same time, demand has increased for Hungarian government bonds, which reflects increased trust. The market expects a more market friendly and more predictable economic policy from the new government, while future restructurings promise a more competitive business environment (while the 9% corporate tax that is the lowest is the EU is expected to stay in place). Once the TISZA government comes into power, we will see how they will manage to strike a balance between budgetary discipline and measures that could stimulate economic growth.

Hungary becoming more attractive

The electoral promises of strengthening ties with the EU and introducing EUR in the not-too-distant future are already improving Hungary’s risk ratings, reflected in foreign exchange rates and on market of government securities. Once the new government comes into power, practical measures are expected to make Hungary an even more favorable business environment.

As a result, now is a really good time to start your new Hungarian business. Take advantage of the low corporate tax and the excellent prospects. If you need help with business setup and residency application, you can count on the expertise and local know-how of Helpers Hungary, with 20 years of experience and a committed team.

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FAQ

Frequently Asked Questions

Will Hungary stay in the EU?

Yes, Hungary will stay in the EU. In fact, public support for both EU membership and the introduction of EUR is quite high in Hungary compared to the regional average.

When will the euro be introduced in Hungary?

There is no established date just yet. According to Péter Magyar PM-to-be, EUR might be introduced in Hungary as early as 2031 or 2032.

What will change in Hungary after the elections?

TISZA party promised to make the Hungarian business landscape more predictable and competitive. International markets are already responding positively to the impending changes. Helpers will provide updates about developments to the business environment in Hungary and any new regulations as they become known.