He also announced the launch of a multi-trillion-forint railway development programme and the start of a 30-day heightened public security operation in Budapest.

The prime minister said one of their most important commitments was to launch a rural development programme, including allocating one billion forints to each of ten settlements for implementation. He said the programme would be presented before Aug 20.

A living, functioning Hungarian countryside is essential for a living, functioning, and humane Hungary, and without it, depopulation cannot be stopped, Magyar said.

Rural residents needed support to stay in their communities, find employment, and ensure mobility and the accessibility of public services, he added.

Magyar insisted that the previous government's rural development programmes had, for the most part, failed to provide additional resources and instead had rechurned existing funds allocated for state and local government tasks.

He said comprehensive consultations would begin with the mayors of all settlements in question, and the public would also be involved in the joint planning process, as different parts of the country would likely require completely different programmes.

He said test projects would be launched in parallel, selecting 10 settlements in different parts of the country with varying characteristics and challenges, and the lessons learned would be incorporated into the planning.

"This shows what kind of country we would like to be and what kind of country Hungarians voted for in an overwhelming majority: a cooperative, developing, transparent country that allows communities a real say in their own destiny," Magyar declared.

The prime minister also announced the cabinet had made a preliminary decision on a multi-trillion-forint railway development programme, largely financed from EU funds.

He said the programme, to be presented early next week, would include track reconstruction and electrification in many places, as well as significant rolling stock procurement, including engines, carriages, and suburban rail units, and the development of tram-train networks.

The prime minister said the first results of the programme, which will run over the next two to six years, would become visible in two to three years.

Until then, the government "will do everything to make rail transport faster, more predictable, more comfortable, and more traceable than it is today", he said.

"It has been a long time since the Hungarian railway was in such a difficult situation," Magyar said, adding that in David Vitezy, the transport minister, the sector now has a leader "it has long deserved".

The prime minister said the programme's financing would be solved using EU funds released since the change of government and within the framework of funds available in the next seven-year EU budget.

He said developing rail transport was an absolute priority in the European Union. He also said the list of developments was not yet final, and the government had launched a social dialogue on the issue.

Magyar said the government will launch a social dialogue on transport safety to reduce the number of accidents.

He said the aim of the multi-week consultation, available on the kormany.hu website, was to introduce measures in the second half of this year that would significantly reduce the number of fatal and serious injury accidents.

Hundreds of people die in accidents in Hungary every year, and a significant proportion of these could be prevented, he said, citing speeding, street racing, and reckless e-scooter use as examples.

The prime minister said the government's goal was not to increase penalties but to protect human life and health.

He noted the government is waiting for public opinion on five main topics: illegal street racing, excessive speeding, tightening the sanction system, the use of automatic control systems, and the regulation of e-scooters.

Meanwhile, the prime minister noted that under the hospital air conditioning development programme worth 3 billion forints launched a few weeks ago, work has already been completed and handed over at 11 sites.

At another 11 sites, the replacement, development, and conversion of climate systems are currently under way. At eight sites, the developments can be completed at times agreed with the hospitals due to technical content expansion.

Due to faults, 25 new sites had to be added to the project, of which developments at three sites will be handed over soon, and at 22 sites, either implementation or planning has begun, he added.

Magyar also announced the interior minister has ordered a 30-day heightened public security operation in the capital, involving the Budapest Police Headquarters, the Standby Police, and the Civil Guard, in response to reports from residents and mayors about deteriorating public security in recent times.

He added that the main focus areas of the operation would be the vicinity of high-traffic entertainment venues in the city centre and the Rakosrendezo area, based on public security issues and resident reports in recent times.

The aim of the operation is to increase visible police presence, prevent criminal offences, curb repeat offender behaviour, and maintain public order, he said.

Magyar added that many of the public security issues in the affected areas were not solely law enforcement-related but were also linked to homelessness, addiction, lack of psychiatric care, and other social problems. For this reason, the operation will also involve social and health-care providers.

Magyar said the Tisza government inherited a 20.2 percent staffing shortage in the national police force and a 38.3 percent shortage in the Budapest police force from the Orban government.

To boost short-term public police presence, the government will allocate 750 million forints from the Drug-Free Hungary scheme to cover overtime pay, addressing the staffing gap, the prime minister said.

He underscored the importance of finding long-term solutions, noting that the interior ministry is implementing personnel, employer and regulatory measures to retain current officers, reintegrate retired ones and attract new recruits.

A new employment model for "community police officers" is also being developed, allowing them to handle minor incidents under contract, he said.

Efforts are under way to reduce administrative burdens, increase street-level policing and establish a new law enforcement communication strategy based on fast, reliable and factual information, he added.

Concerning the removal of asbestos-contaminated crush stone in Szombathely, Magyar noted that Hungary is currently covering the costs but will pursue those responsible.

"If it is proven that a company knowingly supplied and delivered asbestos to Hungary, it will be held accountable," he said.
 

Legal opinions also suggest potential liability for the Austrian mine, Burgenland province and ultimately the Republic of Austria. Magyar added that he will brief the Austrian Chancellor and initiate further discussions based on legal assessments.

He noted that at their talks in Vienna in May, he and Christian Stocker agreed to set up a joint Hungarian-Austrian working group to investigate asbestos contamination, adding, at the same time, that not much progress had been made in this area.

He noted that Austria is also grappling with asbestos issues, with large-scale removals in Vienna and elsewhere. "This can no longer be swept under the rug," he said.

The removal process and costs will be documented, and legal opinions will determine "in what order, and from whom, we must demand reimbursement -- or sue -- to recover the billions spent by the Hungarian state and taxpayers", Magyar said.

Vanda Szondi, a government spokeswoman, said that the government has ordered the removal of asbestos-contaminated crushed stone from affected road sections in the Oladi Plateau district of Szombathely, the area most impacted by the contamination.

She said that even though the latest data show that contamination levels are currently below thresholds that pose a danger to health, the scale and size of the contaminated area justifies intervention.

Fully around 12km of public roads are affected, with roughly 1,500 residents living in the area, she said.

She added that measurements in other areas did not currently warrant immediate action, as contamination levels do not exceed health thresholds anywhere.

Szondi said discussions on the details of the removal of the contaminated stone and its financing are ongoing, and the government will coordinate with the mayor of Szombathely later this week.

Regarding vocational training centres, Szondi criticised the previous government's dual leadership system, where institutions were co-managed by a director-general and a chancellor. Originally intended to incorporate business expertise, the model proved inefficient, she said.

The government will submit a legislative amendment to the parliament to reform the system, replacing dual leadership with a single integrated director-general role from Jan 1, 2027, Szondi said.

Current directors and chancellors will see their terms end on Dec 31, 2026, with new director-general positions open for applications by Sept 30. Current leaders can apply if they meet the criteria.

Szondi also addressed delays in the 21st Century Vocational Institution Development Programme, funded by EU recovery funds.

Fully 18 vocational centres across 34 sites are undergoing renovations and equipment procurement, but some projects face significant delays, she said.

The education ministry proposed extending the physical completion deadline to Dec 31, 2027 to ensure all renovations are finished, avoiding half-completed school buildings, she said, adding that this extension did not absolve anyone of responsibility for the delays.

Szondi also said the government had made a decision on Wednesday regarding an EU consumer protection regulation.

Accordingly, consumers would receive more detailed and reliable information about the products they purchased, including comprehensive details on durability, repairability, and the availability of spare parts.

She noted that the directive should have been transposed into Hungarian law by March 27, but the previous government had failed to do so, leading the European Commission to launch an infringement procedure against Hungary.

Meanwhile, the government spokeswoman said Hungary's strengthened position in the film industry was partly due to a tax incentive under which productions filming in Hungary were entitled to a 30 percent rebate on their certified domestic film production costs but the previous government had decided that in the first half of 2026, only a limited number of new films could be registered, making the system unpredictable and causing major international productions to start moving to other countries.

This restriction was lifted on July 1, so film projects can now register for the tax incentive without limitations, she said.

At the press conference, Prime Minister Peter Magyar announced that the August 20 celebrations would be organised for a fraction of the cost, at 4.3 to 4.4 billion forints.

He added that the Orban government would have organised the series of celebrations at a significantly inflated cost of 17.5 billion forints with the Lounge Event Ltd, owned by Gyula Balasy, and had already paid an advance of 8.7 billion forints.

Due to ongoing procedures against the company, the National Event Organising Agency terminated the contract and then, due to the short time, announced an invitation-only tender, which has already been evaluated, he said.

He added that there would be a significantly shorter fireworks display, but it would be supplemented with a light show and a drone show.

At the press conference, Magyar predicted the complete disintegration of Fidesz, recalling that in an interview with Partizan in February 2024, he had already said that many people could not imagine how quickly the system of national cooperation (NER) could fall apart.

He said the events of the April election and the past week seemed to confirm this, and Fidesz "in its current form will probably not be able to survive".

He said, "We are on the brink of complete disintegration, and the processes are accelerating."

Regarding former foreign minister Peter Szijjarto's position at Chinese auto manufacturer BYD, Magyar said this would not affect the company's relationship with Hungary.

According to his information, employees at the company were also surprised by the decision, "they were not informed in advance and do not agree with it".

He underscored that the same rules applied to BYD as to other industrial investors. Environmental, labour, and other regulations must be complied with both during the investment and operation, and if they do so, pay their taxes, and fulfil the commitments made in the funding agreements, "then we are happy they are here", he said.

The company has received around 300 billion forints in support, including direct subsidies and infrastructure, energy, and other commitments undertaken by the Hungarian state, the prime minister added.

He noted that an investigation has been launched into the former foreign minister's relationship with Russia but gave no details, saying he did not want to prejudice the case.

Magyar said the case of Szijjarto could lead to a tightening of the rules on state officials taking jobs at market companies after their term in office.

He said companies also required that someone could not take a position with a competitor after the end of their employment relationship.

Referring to Szijjarto, he said that in a normal democracy, it should not happen that someone who considers himself a national patriot politician then goes to work for an international global multinational "whose support he lobbied for". This raises not only moral but also legal responsibility, he added.

He also said that "various officials from various Orban governments" had avoided taking leading positions at the Samsung plant in God, and that company had also received "huge" state support.

The prime minister also said he was waiting for President Tamas Sulyok's decision. The five-day deadline for signing the 17th amendment into law, as stipulated in the constitution, expires on Saturday evening. He could also decide to resign before then, Magyar said.

The prime minister said he did not expect the head of state to "drag out" the matter. He noted that it was no coincidence that the Venice Commission had not made an urgent decision on the matter, and the Constitutional Court had not addressed Sulyok's previous petition.

He said the Tisza presidency and the parliamentary group had not yet discussed the future head of state, as this would not be dignified, courteous, or humane.

If Sulyok signed the constitutional amendment or resigned, they would then convene the presidency and the Tisza group, and if they lined up behind a joint candidate, he would approach the leaders of the parliamentary factions and coordinate with them, he said.

Concerning rising fuel prices, Magyar said that diesel prices exceeded 720 forints per litre, and the price of petrol often surpassed 650 forints under the Orban government.

He dismissed claims that fuel prices at many Hungarian petrol stations now exceed the previous regulated price levels as "a lie". 

"Average prices are still below the regulated price levels," he said, but acknowledged that some stations may charge more. He said current prices were "roughly in line" with those in neighbouring countries.

Magyar said there were no supply issues, adding that the country's strategic reserves were enough to cover 87 days, and and that oil and gas company MOL has assured sufficient stocks of all fuel types and crude oil.

He said there was little room to adjust excise duties on fuel, as EU regulations prevent introducing lower tax brackets.

While MOL is currently maintaining prices near previous protected levels, Economy and Energy Minister Istvan Kapitany will intervene if significant fluctuations occur, the prime minister said.

Meanwhile, Magyar declined to comment on whether the government is considering maintaining or scrapping the markup caps.

Asked by MTI about the National Asset Recovery and Protection Office (NVVH), Magyar expressed a preference for a small, efficient organisation, but stressed that the final structure will be decided by the office's leadership, who will be selected through an open and transparent tender process.

He said the government will allocate the 3 billion forints remaining from the Sovereignty Protection Office's 6 billion forint budget to the NVVH.

He said that "given the commitment of the parliamentary majority", the NVVH would be given the necessary resources, adding that the European Public Prosecutor's Office could serve as a model for the new body.

Asked about filming by opposition MPs in the parliamentary chamber, Magyar cited the economy and energy minister as saying such conduct in any other workplace would result in an immediate termination.

"No one has been filmed more than I have," he said, adding that while being recorded was part of public life, degrading the dignity of parliament "to the level of farce, as seen with three or four MPs, is unacceptable".

Asked about the rural development St. Stephen Programme's pilot projects, Magyar said selections would not be based on partisan politics, ensuring a diverse range of participants would gain as much experience as possible.

Asked about the elimination of dual leadership in vocational training centres, Magyar emphasised that removing this "completely unnecessary structure" would save costs and end political interference.

Concerning the daily 1 million euro fine Hungary has to pay for not taking in illegal migrants, Magyar said discussions are ongoing to resolve the issue. "The EU institutions' approach to this question is constantly evolving," he said, noting it was born in a completely different legal and political environment.

He said he observed a shifting perspective in Europe, with almost all member states now adopting a much more radical and forceful stance against illegal migration. The goal, he added, was to "keep illegal migrants out and ensure Hungary does not have to pay the fine".

Asked about the restriction on the entry of guest workers, Magyar said the current regulations were not final, and a more detailed framework would be introduced.

The government aims to ensure workers have healthy, normal working conditions and competitive wages, preventing them from facing disadvantages in their home countries or being treated as second- or third-class employees, the prime minister said.

Concerning term limits for MPs, Magyar rejected the notion that limiting lawmakers to three terms was "crossing a line". He noted that in the election campaign he had proposed an 8-year limit.

Asked if he knew about Fidesz MP Janos Boka's past role at the Information Office, Magyar said he had no information about the former EU affairs minister's work there. 

"They don't usually prune roses there," he said, adding that working for a democratic state's intelligence service was not a problem. "What is problematic is if someone moves to a political community while still working for intelligence agencies," he added.

Meanwhile, Magyar said the national convention of the Tisza Islands grassroots organisations on the August 20 national holiday will be held on Budapest's Margaret Island.

MTI Stock Photo

Source: MTI – Hungary’s national news agency since 1881.

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