Hungary’s anti-corruption watchdog has told POLITICO that senior figures from Viktor Orbán’s former government could face prosecution over alleged misuse of EU money, with claims that billions were siphoned off during his 16 years in power. The case comes as Péter Magyar’s new government seeks to rebuild trust with Brussels, secure frozen EU funds, and meet anti-corruption conditions tied to those payments.
Investigation pressure grows
As reported by POLITICO, Hungary’s Integrity Authority says some senior officials from the Orbán era “can and may well be prosecuted” over allegedly misused EU funds. The watchdog’s chairman, Ferenc Pál Biró, said the authority had already flagged several criminal cases and wants the money recovered and repatriated, because much of it has left the country. He did not name Orbán directly, but said the alleged wrongdoing stretched across the former prime minister’s 16 years in office.
The report lands at a politically sensitive moment for Budapest. Hungary’s new government is trying to persuade EU institutions that it can be trusted with billions of euros that were frozen over rule-of-law and corruption concerns. That makes the watchdog’s intervention more than a domestic anti-graft move; it is now part of a broader struggle over Hungary’s standing in Brussels.
What the watchdog said
According to POLITICO, Ferenc Pál Biró said top politicians “can and may well be prosecuted” in relation to alleged misuse of EU taxpayer money. He described the matter as an effort to “bilk EU taxpayers” over the course of Orbán’s rule, and said his team had already identified multiple possible criminal cases. The authority’s position is that the state should seek recovery of the funds and pursue repatriation where possible.
This is a significant step because the Integrity Authority was created specifically to reassure Brussels that Hungary could protect EU money properly. It has investigation powers, but not prosecutorial authority, which means any criminal action would still depend on other Hungarian institutions. That legal limit is important, because the watchdog’s warning may increase political pressure even if it does not itself bring charges.
EU funds under scrutiny
The funds at the centre of the wider dispute have already been frozen and partially released in stages under strict conditions. Reuters reported on 29 May that the European Commission agreed to unlock €16.4 billion for Hungary after reforms under Péter Magyar’s new government. The package includes about €10 billion from the EU recovery fund, €4.2 billion from cohesion funds, and a further €2.2 billion linked to later reforms.
The BBC reported that the Commission framed the release as dependent on Magyar’s administration carrying out “long-overdue reforms”. Hungary’s new leader has argued that the funds are essential to the economy and that the money represents a major share of the national budget. At the same time, EU officials have stressed that disbursement is not automatic and depends on compliance with a set of binding conditions.
Magyar’s reform gamble
Reuters reported that Péter Magyar planned to present anti-corruption legislation aimed at meeting EU rule-of-law standards. The same report said his government was preparing to bring in new measures to satisfy Brussels and secure the release of halted funding before deadlines later in the year. Magyar also signalled that Hungary would move closer to the European Public Prosecutor’s Office, a major break from the Orbán era.
BBC reported that Magyar has accused Orbán of misleading Hungarian voters about why the money was frozen, saying the real problem was corruption. That political messaging matters because Magyar is trying to show both domestic voters and EU institutions that his government is different from the previous one. The anti-corruption watchdog’s comments now reinforce his broader argument that the scandal around EU funds is tied to the former ruling circle.
Background to the funding dispute
Hungary has been in conflict with EU institutions for years over concerns about democratic backsliding, judicial independence and corruption. The European Commission previously suspended payments under Viktor Orbán’s government and later resumed some of them after judging that reforms were sufficient. But in February, the EU Court’s advocate general said the Commission should not have released certain funds because Hungary had not fully completed the required judicial reforms.
That legal opinion is not binding, but it is often followed by the court. It strengthened the argument that the Commission may have acted too early in unfreezing some money. In practical terms, it also kept pressure on Budapest to show stronger anti-corruption controls before more funds can be paid out.
Why the timing matters
The latest claims arrive just days after the Commission agreed to release billions more for Hungary under Magyar’s government. That makes the watchdog’s warning politically awkward for both Budapest and Brussels. For Magyar, it underscores the scale of the clean-up task inherited from Orbán’s era; for the EU, it highlights the risk of releasing funds before confidence in Hungary’s systems is fully restored.
There is also a financial deadline problem. Reuters reported that some of Hungary’s recovery money must be secured before the end of August, creating pressure for quick reforms and fast political agreement with Brussels. EU officials have said the funding will only flow if Hungary satisfies the required conditions, so the new government must prove it can implement its promises.
What happens next
For now, the Integrity Authority’s comments amount to a serious public warning rather than a formal indictment. The authority believes criminal cases exist, but any prosecution would require action by the appropriate Hungarian legal bodies. The political significance, however, is immediate: the watchdog is openly alleging that misuse of EU money may have reached the highest levels of the previous government.
The broader dispute over Hungary’s access to EU funds is therefore entering a new phase. One side is arguing that Orbán-era misconduct helped drain public money; the other is trying to convince Brussels that a new administration can deliver reforms quickly enough to unlock support. The outcome will shape not only Hungary’s finances, but also its relationship with the European Union in the months ahead.
