Hungary: Government Restructuring and Business‑Relevant Changes

On 13 May 2026, the new Government of Hungary adopted Government Decree no. 90/2026. (V. 13.) on the duties and powers of the members of the Government (Statute Decree).

On 13 May 2026, the state of danger (veszélyhelyzet) previously in force was lifted. Following this transition, Act XIV of 2026 entered into force on 14 May 2026, elevating a number of earlier emergency government decrees to statutory level and thereby ensuring the continued applicability of certain measures within the ordinary legal framework. By way of example, rules concerning (i) administrative procedural simplifications introduced during the state of danger, and (ii) selected sector-specific measures in areas such as energy supply security and public service continuity, have been maintained in the form of primary legislation. This legislative step reflects an intention to preserve key regulatory solutions developed during the emergency period while restoring the normal hierarchy of legal sources.

Below we provide a brief summary of the duties and powers attributed to the principal ministers, broken down by some key business sectors and policy areas. We also outline certain organizational and operational features of the Government established by the Statute Decree.

European Union affairs

The Minister heading the Prime Minister’s Office shall be responsible for the coordination of European Union affairs, as well as for the development and coordination of EU policies. In this capacity, the Minister will oversee inter-ministerial coordination of governmental tasks arising from EU policies and Hungary’s EU membership.

Notably, responsibility for EU affairs has shifted several times: it was previously within the competence of the Ministry of Justice, later assigned to a dedicated separate ministry, and is now placed under the authority of the Prime Minister’s Office.

Legislation and constitutional reforms

The Minister of Justice, Dr Márta Görög, will be responsible, on the one hand, for matters relating to constitution-making and, on the other hand, for preparing legislation in a broad range of areas. These include law-making, the President of Hungary and other public law office-holders, the organisation of the courts, civil law, civil procedure, private international law, and arbitration.

The breadth of this mandate may indicate a potential comprehensive codification agenda.

Allocation of key sectors to the Ministers

Energy, trade (including foreign trade), manufacture, defence

The Minister for Economic and Energy Affairs, Mr István Kapitány, will head one of the Government’s most extensive portfolios, with highly concentrated competences.

Foreign economic relations – previously under the Ministry of Foreign Affairs and Trade – together with energy (formerly organized as a separate ministry) have now been under this ministry. At the same time, fiscal policy has been separated and assigned to a standalone Minister of Finance.

The Minister will be responsible for energy, mining affairs, consumer protection, economic development, industrial policy, trade, external economic relations, national utility services, tourism and hospitality, as well as enterprise development.

The portfolio also includes responsibilities for defence industry development and investments, support programmes for SMEs, strategic cooperation agreements with large enterprises, and investment protection.

In addition, the Minister will be responsible for drafting legislation governing electricity, natural gas supply (including public utility services), and nuclear energy.

Infrastructure, transport and construction

The Minister of Transport and Investments, Mr Dávid Vitézy, will oversee, for example, state investments, construction regulation and construction authority matters, transport, housing policy, and road tolling services.

In this role, the Minister will coordinate the preparation and implementation of state infrastructure investments not otherwise assigned to another minister or designated authority, excluding matters related to the energy system and defence industrial investments.

Finance and Capital markets, tax, fiscal policy, state assets

The Minister of Finance, Mr András Kármán, will be responsible for tax policy, public finances, the supervision of state assets, and the regulation of their management.

The portfolio also covers public procurement, and the regulation of money, capital, and insurance markets, as well as gambling.

The Minister will oversee contracts relating to state assets, including privatization, concession, public-private partnership (PPP), and other agreements involving state property. In addition, the Minister supervises real estate developments implemented on state-owned property, taking into account the State’s ownership interests.

EU subsidies

The Minister for Rural and Regional Development, Dr Viktória Lőrincz, will be responsible for the utilization of European Union funds, as well as for regional and rural development, local governments, and the organization of public administration.

This includes establishing the regulatory framework for the use of EU funds, ensuring coordination across sectoral and regional stakeholders, overseeing domestic co-financing, and exercising certain remedial powers in relation to decisions adopted by bodies managing such funds.

Veto powers in respect of draft legislation and Government resolutions

The new Government introduces a novel operational feature whereby four ministers—the ministers responsible for health, education, justice, and finance—are vested with veto powers in respect of draft legislation and draft Government resolutions to be published in the Hungarian Official Gazette.

Within this framework:

• the ministers for health and education may exercise veto rights within their respective sectors,
• the Minister of Justice may exercise a legal and constitutional veto, and
• the Minister of Finance may exercise a budgetary veto.

Cabinets of the Government 

The Government establishes the Strategic Cabinet, the Economic Cabinet, the Development Cabinet, and the Defence Council as decision-making fora.

It is noteworthy that, while the Statute Decree refers to the Development Cabinet, it does not set out detailed rules governing its operation.

This article forms part of the series Regulatory Updates from Hungary.