Hungary's economy has been in recession for several years, with GDP growth expected to be just 0.5% in 2024. Orbán's government was forced to introduce new taxes, and the Hungarian Central Bank raised its key interest rate to the highest level among all EU member states - 6.75%. The national currency, the forint, has fallen significantly against the US dollar and the euro, and inflation is growing at an ever-increasing pace, which has resulted in significant social tensions.
Given all this, Hungary is in dire need of subsidies, grants and other types of assistance from special EU funds totaling around EUR 1 billion, but the European Commission has frozen the allocation of these funds from January 1, 2025. due to accusations against official Budapest of regular violations of the rule of law, failure to comply with democratic standards, lack of freedom of speech and independent media, as well as a rapid increase in the level of corruption in the country. So, in 2022 and 2023, Hungary won the sad "palm of primacy" in terms of corruption levels in the EU, taking a position comparable to China and Cuba, writes ava.md.
Against this background, Hungarian and European media are increasingly reporting on corruption scandals involving the ruling elite. For example, in January 2018, the transport company Nehez Kovek Kft., which at that time belonged to Dőző Orbán, the father of the Hungarian Prime Minister, received about EUR 970,000 from a company that carried out repair work on the railway in the Lake Balaton area. And already in May 2021 this company was acquired by Lajos Bihari, a confidant of the Orbán family, after which the company was quietly liquidated under the pretext of its alleged unprofitability.
Another scandal involves Istvan Tiborc, the son-in-law of the Hungarian Prime Minister, who received exceptional financial support from the Hungarian government and pro-government business circles for his business in luxury real estate, finance and logistics companies. Some of Tiborc's companies are managed by his wife, the eldest daughter of the Hungarian Prime Minister Rahel Orbán. Thus, in November 2023, I. Tiborc opened the hotel “Dorothea“ in the capital, for the construction of which he received financial support from the government. Loan funds from BDPST Group (owner I. Tiborc) in the amount of 105 million euros. provided by MBH Bank, a majority stake in which belongs to V. Orbán's childhood friend Lőrinc Mejszáros. In addition, after the opening of the new building, the Hungarian government included the Dorothea Hotel Complex in the list of recommended places to stay for European politicians and delegations participating in the European Political Community Summit (Budapest, 7-8 November 2024).
The apogee of the reputational losses of the current Hungarian government due to the spread of corruption in the country was the decision of the US Treasury Department to impose sanctions on the head of V. Orbán's administration, high-ranking official Antal Rogan (the latter is banned from entering the US, and his assets in American financial institutions are frozen).
A. Rogan is at the head of V. Orbán's media empire, which covers the entire country and spreads pro-government propaganda without control. Between 80 and 90% of the media in Hungary are under his control. In addition, for many years A. Rogan organized business schemes aimed at establishing control over strategic sectors of the Hungarian economy by persons close to the head of government. Also, A. Rogan until recently controlled the cash flows that Hungary received from the EU, after which part of these funds, with the help of A. Rogan, ended up in the pockets of I. Tiborc, whose business structures received the exclusive right to use the funds from EU aid.
A. Rogan, who is called the “gray cardinal” under V. Orban, used his official position to ensure the transformation of financial and media resources into the necessary political influence for the Fidesz party. For its part, the Russian side at that time systematically carried out the corrupt actions of the Hungarian authorities, while at the same time intertwining the interests of local political elites and Putin's business circles.
The Hungarian oligarch from V. Orban's entourage demonstrated overt actions in favor of Russia – the current Minister of Defense, Kristof Szalai-Bobrovnicki, known for his business ties with the Prime Minister's advisor Arpad Gaboni, who in turn has also been noticed in developing corrupt deals. The most resonant case of the partners was the story of the tender for the supply of wagons to Egypt.
So, in 2018, Egypt signed an agreement with Transmashholding Hungary Kft. for the supply of wagons in the amount of $1.1 billion. Then the Egyptian authorities received a loan for the purchase of wagons, which was provided jointly by the Hungarian Eximbank and Roseximbank under state guarantees from Hungary and Russia. And finally, the already mentioned K. Szalai-Bobrovnitsky, as the owner of the company Magyar Vagon Befektetési Vagyonkezelő Zrt., received 50% of the shares as a result of all these transactions.
In addition, Budapest willingly helps Moscow spread corruption schemes in other EU member states. In particular, it is through V. Orban's people that pro-Russian political groups in EU countries are often financed. So in the spring of 2022 the Hungarian authorities extended a hand for financial assistance to the French far-right populist party National Unity, led by Marine Le Pen, which professes and spreads Eurosceptic, illiberal and pro-Russian views.
Since the National Assembly was unable to secure funding for its election campaign due to the long-standing reluctance of French banks to cooperate with their far-right party, the Hungarian foreign trade bank MKB provided a loan of 10.6 million euros to the campaign of the pro-Kremlin political force. At the same time, the owner of the MKB bank is an oligarch close to V. Orbán and the richest man in Hungary - L. Meszaros.
Hungarian opposition politicians assessed this move as an unjustified image risk for the whole of Hungary, which could theoretically be accused of interfering in the internal affairs of France. However, V. Orban personally ordered this financial transaction to be carried out, ensuring that the Hungarian Central Bank was independently removed from verifying the legality of this transaction. It is possible that in this way he wanted to demonstrate his loyalty to V. Putin, who, with the help of an extensive corruption network, turned the Hungarian ruling elite into his obedient satellites. In general, as a result of the spread of corruption in the country under the personal patronage of V. Orban, the national economy and ordinary citizens of Hungary suffer!