Hungary
Hungary performs in the mid-range across all four categories of the Global State of Democracy (GSoD) framework. Between 2018-2023, Hungary experienced significant declines in Rule of Law, Elected Government and Economic Equality. The economy is a major concern, as the country had the highest inflation in the EU for most of 2023, and Hungary’s GDP per capita ranks below the EU average. Industry, wholesale and retail, trade, transport, manufacturing, services and transfers from the EU are the most important sectors of its economy.
Hungary's history begins with the Magyars, who arrived from southern Russia and the Black Sea in the 9th century. After centuries as a medieval kingdom, Hungary became part of the Ottoman and Habsburg empires, later joining the Austro-Hungarian Empire in 1867 (the second-largest state in Europe). Austria-Hungary dissolved due to diverging interests, internal crises, and the aftermath of World War I. The Treaty of Trianon (1920) set Hungary’s borders, leaving over two-thirds of its territory outside the new borders. Hungary's shift to democracy began in the 1990s and was solidified by EU accession in 2004. The global financial crisis of 2008-2009 and the unpopularity of the Hungarian Socialist Party (MSZP), which was in power at the time, provided the opportunity for the Fidesz party, led by Viktor Orbán, to return to power (dominantly) in 2010. One of the main cleavages in Hungarian politics is between urban and rural areas, with the former typically favouring liberal and pro-EU views and rural areas leaning towards conservative and nativist views. Government control over the media and the distribution of EU-funded public works have further entrenched political dominance in rural areas.
The country has experienced democratic declines due to executive aggrandizement and strategic electoral manipulation, illiberal legislation, diminished authority of the Constitutional Court, government control over media, and institutions populated with ruling party loyalists. In recent years the ruling party has turned pluralities (or slim majorities) of the popular vote into supermajorities in the parliament, thus allowing for unilateral constitutional changes. Due to concerns over the rule of law, rights and judicial independence, the EU froze billions in funding to Hungary in 2022, pending required reforms.
Migration is a significant issue in Hungary. While the country accepted many asylum applications during the 2015 crisis, the construction of border fences and legal amendments drastically reduced numbers, leading to no asylum applications by 2023. The government maintains an anti-immigration stance, with reports of systemic human rights violations against asylum seekers. Hungary has been found guilty of breaching EU law in several migration-related cases, with multiple pending rulings in the CJEU and ECHR. The Roma constitute the largest minority group, officially accounting for 2.5 per cent, though estimates suggest their actual representation ranges from five to ten per cent. Germans, Slovaks, Romanians, and Croats follow. The Roma community experiences discrimination, social and economic marginalization, educational exclusion, and exposure to hate speech.
Hungary has a mid-range performance in Gender Equality according to the GSoD Indices. Progress has been slow, with significant inequalities persisting in political, economic and social decision-making. In 2022, the government tightened the abortion law. As of April 2024, women occupy merely 14.6 per cent of the parliament seats, representing one of the lowest rates in the EU. The rights of the LGBTQIA+ community have been restricted in recent years, notably with a 2021 law that bans the "display and promotion of homosexuality."
Looking ahead, it will be important to watch whether EU measures and mechanisms might help curb democratic deterioration, particularly in terms of the Rule of Law (especially Judicial Independence), as well as Rights (especially Freedom of Expression, Freedom of the Press, Gender Equality, and Social Group Equality).
Last updated: September 2024
https://www.idea.int/democracytracker/
February 2024
Child abuse pardoning decision triggers public outcry and resignations
A news site revelation that President Katalin Novák pardoned a man convicted of covering up sexual abuse in a children’s home (in a decision countersigned by Justice Minister Judit Varga) unleashed unprecedented political pressure on the ruling elite, known for its traditional family-oriented politics. The scandal triggered concerns regarding the transparency and ethical considerations involved in pardon decisions and their potential impact on depriving victims of due justice. Investigative journalists reported that Zoltán Balog, the leader of the Hungarian Reformed Church, advisor and mentor to President Novák, and former Fidesz MP and minister in Orbán’s government, influenced this presidential pardon. Following pressure from the opposition and public outcry (including widespread protests), Novák and Varga resigned on 10 February. Novák made history as the country's first female president, while Varga was among the two women in Prime Minister Viktor Orbán's male-dominated cabinet. On 26 February, the parliament elected the ruling coalition Fidesz-KNDP's candidate Tamás Sulyok, former chief of the Constitutional Court, as the new president.
Sources: 444.hu, Index, Reuters (1), Reuters (2), Daily News Hungary, BBC, Balkan Insight, Hungarian Government, Associated Press, VSquare
December 2023
Parliament passes ‘sovereignty law’
On 12 December, the parliament passed a law to protect “national sovereignty,” targeting what the ruling Fidesz party views as unwarranted foreign political interference, particularly through funding to political parties during the electoral campaigns. The legislation, passed with 141 votes in favour and 50 against, establishes the Sovereignty Protection Office, equipped with extensive investigative powers. This office can scrutinize NGOs and individuals engaged in public discourse, initiating investigations into those suspected of serving foreign interests. The Penal Code now states that those who are found to have accepted foreign funding while running for office may face up to three years in prison. The Council of Europe Commissioner for Human Rights urged Fidesz to abandon the proposal, expressing concerns about potential misuse of sensitive data. Four major political groups voiced deep concerns about threats to the rule of law in a letter to EU Commission President Ursula von der Leyen. Critics, including rights groups, warned the law resembles Russia's foreign agent legislation, posing risks to freedom of expression and independent journalism.
Sources: Euronews, Index (1), Index (2), Reuters (1), Reuters (2), International Press Institute, S&D Group (X), Committee to Protect Journalists
Update: In October, the European Commission referred Hungary to the European Court of Justice over its ‘Defence of Sovereignty’ law, citing violations of privacy, free speech and assembly, and presumption of innocence. If found to be in breach of EU law, the country may face a fine. A ruling is expected in the coming years.
Sources: Euronews, Euractiv, Al Jazeera, Radio Free Europe/Radio Liberty, Transparency International
EU Commission unblocks EUR 10.2 billion in cohesion funds
The European Commission unblocked EUR 10.2 billion in cohesion funds for Hungary, nearly a year after freezing the funds due to the country's failure to address rule-of-law concerns. This decision enables the government to submit reimbursement requests for development projects. Didier Reynders, the European Commissioner for Justice, emphasized that improved judicial independence guarantees have been received, cautioning this is not the conclusion of the process and indicating ongoing vigilance for any potential setbacks. Approximately EUR 21 billion in funding for Hungary remains locked. Some observers said that the release of funds is part of negotiations with Hungary not to oppose accession negotiations with Ukraine and not to block funds and military aid to Ukraine. The European Commission maintains that its decision is a procedural response to Hungary's judicial reform. Amnesty International and the Hungarian Helsinki Committee argue that the reform inadequately addresses the concerns raised by Brussels, since the solutions violate rule of law by breaching relevant legislation, neglecting public consultations and civil society’s proposals.
Sources: European Commission, Euronews, Deutsche Welle, Politico, Balkan Insight, Hungarian Helsinki Committee, Magyar Hand
July 2023
Parliament passes controversial education law
Despite protests by teachers, students and parents, the parliament has voted in favour of a controversial education law, which enters into force on 1 January 2024. The law abolishes teachers’ status as public servants, limiting their rights and restricting their autonomy. Further, the maintainer of their educational institution, which in most cases is the state, will determine their salaries based on their performance. Critics fear that loyalty to the state will count towards better performance evaluations. By 29 September, teachers can either accept these conditions or resign. More than 5,000 have already pledged to resign in a March petition. They consider the bill a government retaliation against their 1.5 years of striking for better pay and working conditions. Trade unions have criticized the law for overloading teachers and masking staff shortages, whereas the president, Katalin Novák, insists that it “ensures the [...] functioning of the public education system”.
Sources: President of Hungary, Associated Press, Telex, 24.hu, Euronews, European Commission
June 2023
EU Court rules Hungary’s migration regulation breached EU law
The European Court of Justice has ruled that Hungary broke EU law when it introduced a new law during the Covid-19 pandemic in 2020 making procedures more difficult for asylum seekers. The judgment found that the law deprived “third-country nationals or stateless persons concerned of the effective enjoyment of their right to seek asylum from Hungary”. The rules forced asylum seekers, including those already in Hungary, to submit a pre-asylum application at Hungarian embassies in Serbia or Ukraine before applying for international protection in Hungary. Authorities said that certain asylum seekers, such as Ukrainians, were exempt from the rules. The case was brought forth by the European Commission, which will now have to decide between demanding that Hungary repeal the regulation and levying fines.
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