Hungary’s opposition flags ‘New Deal’ to kickstart stagnating economy

Hungary’s opposition head Peter Magyar announced on Saturday that his Tisza party aims to introduce a “Hungarian New Deal” to stimulate the sluggish economy through significant investments and stable policies if victorious in the upcoming elections next year.

Magyar, whose center-right party consistently outperforms the ruling Fidesz in numerous polls, represents the most significant political threat to nationalist Prime Minister Viktor Orban, who, after 15 years in office, is grappling with ways to strengthen the economy affected by inflation. The potential for substantial U.S. tariffs on EU imports also casts a shadow over recovery chances, and Saturday’s declaration of 30% tariffs on the EU by President Donald Trump presents negative implications for the Central European nation.

Magyar presented his Hungarian New Deal initiative to supporters at his party’s congress in the western town of Nagykanizsa. The core elements of Tisza’s strategy will include a significant healthcare overhaul with an extra 500 billion forints ($1.5 billion) in annual funding, a comprehensive program for constructing rental flats and homes, modernizing state railways utilizing EU and domestic funds, and boosting investments in household energy efficiency and education.

Magyar, a former government insider who entered Hungarian politics last year, reiterated his commitment to release approximately 20 billion euros in suspended EU funds that Hungary has not accessed for years due to disputes between Brussels and Orban over alleged democratic decline and corruption — claims Orban refutes.

The parliamentary election is scheduled for early next year, although a specific date has not been established. In June, the parliament approved Orban’s budget for the 2026 election year, which features significant tax reductions for families, an essential voter segment for Fidesz. “People are fed up with this regime. And Tisza is a kind of ‘collecting party’ which stood behind all this (discontent). People want change,” said Edit Piroska Borsi, a retired teacher at the congress.