Hungary’s changes to ministerial system expected to impact businesses and stakeholders

Following the election of Hungary’s new parliament and government headed by Prime Minister Péter Magyar, changes have been introduced to the ministerial system including reallocation of ministerial responsibilities, the creation of new ministries and the reorganisation of existing portfolios, which are expected to carry implications for businesses and stakeholders.

The following article summarises the most relevant changes.

Foreign direct investment

Regarding Hungarian foreign direct investment (FDI) control mechanisms, the new government decree setting out ministerial responsibilities (see Government Decree No. 90/2026. (V. 13.) states:

• The Minister of Economy and Energy (István Kapitány) is responsible for the domestic economy. FDI notification under Act L of 2025 (elevating certain emergency decrees to statutory level in response to the armed conflict in Ukraine) must be submitted to this minister. This replaces the previous role of the Minister for National Economy.
• The Minister of Interior (Gábor Pósfai) is responsible for directing the civilian national security services. FDI notifications under Act LVII of 2018 (concerning investments affecting Hungary’s security interests) must be filed with this minister. Previously, this responsibility rested with the Minister of the Prime Minister’s Cabinet Office, which has also been abolished.

All businesses with planned FDI transactions in Hungary are affected. To avoid complications in the notification process, it must be ensured that FDI filings are directed to the Minister of Economy and Energy (i.e. filings made under Act L of 2025) or the Minister of Interior (i.e. filings made under Act LVII of 2018).

Tax

The Government Decree confirms that the Minister of Finance (András Kármán) is responsible for tax policy. 

This marks a return to the longstanding practice established after the regime change in 1990 whereby tax policy was consistently placed within the remit of the Minister of Finance. Although the previous government transferred this policy area to the Ministry of National Economy on two occasions (most recently January 2025), the new government has restructured the ministry, and from May 2026 the Minister of Finance once again is responsible for tax policy.

The Ministry of Finance is expected to take an active role in shaping new tax policy initiatives in the near future.

Competition

Regarding competition law, the Government Decree introduces a partial division of responsibility:

• The Minister of Justice (Márta Görög) remains responsible for competition law matters as a general rule.
• Specific responsibilities, particularly with a strong EU dimension, are assigned to the Minister heading the Prime Minister’s Office (Bálint Ruff). This include, in particular, ensuring that state aid falling under Article 107(1) of the TFEU is assessed from a competition perspective, and forwarding of final court judgments to the European Commission in cases applying Articles 101 or 102 TFEU or the DMA.

This allocation reflects the coordinating role of the Prime Minister’s Office in EU affairs. The parallel allocation of responsibilities also hints at an increased governmental focus on competition law, particularly regarding the EU.

Public procurement

Responsibility for public procurement, including its central monitoring and authorisation, now falls within the remit of the Minister of Finance, having previously sat with the Minister of Public Administration and Regional Development (a position that has now been discontinued). The Minister of Finance will prepare relevant legislation, formulate and execute the government’s public procurement policies. Operationally, these responsibilities will continue to be managed through the National Development Centre (Nemzeti Fejlesztési Központ).

The Minister of Finance is also responsible for supervision of state assets and regulation of their management and will oversee and monitor contracts concerning state assets, privatisation, concession and PPP projects. For national public roads concessions, however, the rights and obligations pertaining to the state under the concession agreement will rest with the Minister of Transportation and Infrastructure.

Health care

The Government Decree sets out the responsibilities of the newly established Minister of Health Care, a position Hungary has not had since 2010, when health-care policy was integrated into the Ministry of Human Resources and subsequently into the Ministry of Interior Affairs (alongside education policy and many additional areas). The Minister of Health Care will be responsible for healthcare, social security, drug prevention and drug policy coordination. 

Zsolt Hegedűs, the Minister of Health Care and a health-care professional by background, has announced plans for a comprehensive reform of health-care regulation, institutions, and management. Among others, the National Health Insurance Fund (Nemzeti Egészségbiztosítási Alapkezelő) is to resume its former Hungarian name (Országos Egészségbiztosítási Pénztár) and take on a broader role as a service purchaser rather than functioning solely as a payor. 

The Minister of Health Care will establish a health-care quality assurance agency and separate the National Centre of Pharmacy from the National Centre for Public Health, which are currently operating as a joint institution. The role of the National Hospital Directorate General is also expected to be redefined, resulting in less centralisation and greater professional and economic autonomy for the hospitals. The establishment of the National Institute for Primary Care and Methodology will ensure professional oversight for primary care, and new Health and Social Centres are expected to reform primary care. Hospital development is also included among the plans, including establishing new elective surgical hubs. 

For more information on the new ministerial structure and how it could impact your business operations in Hungary, contact your CMS client partner or the CMS experts who contributed to this article. 

The article was co-authored by Zsolt Zsurzsa, Márton Angyal, Diána Szécsényi-Galambosi, Klaudia Székely.