Hungarian Prime Minister Peter Magyar announced on Wednesday that his cabinet will temporarily halt non-essential spending as the new administration assesses the country’s fiscal position. Magyar said the pause - which must be approved by the cabinet - is expected to last one to two weeks while officials review the budget left by the previous government led by Viktor Orban.
He stressed that routine payments will continue without interruption, specifying that regular expenditures such as civil servants’ salaries will be paid as usual. The announcement came during a break from his first cabinet meeting, when he spoke to reporters in southeastern Hungary on Wednesday.
In the same remarks, Magyar reiterated his intention to reach a deal with the European Union this month that would release more than 10 billion ($12 billion) in funding. These funds were frozen in response to policies enacted under Orban, and Magyar described the potential inflow as a means to address the country’s budget shortfall.
Magyar acknowledged there are still some outstanding issues to resolve and noted an end-of-August deadline to make use of the funds. Despite those constraints, he expressed confidence that an agreement will be finalised and that the money would contribute to ending what he characterised as Hungary’s economic stagnation.
"Its in the interest of Hungary, the European member states and perhaps also the European institutions that this cash finds its way here," he said.
The temporary spending block is designed to give the new government a short window to scrutinise fiscal commitments and priorities. Cabinet approval is required to implement the freeze, and Magyar signalled the measure is intended as a temporary administrative step while broader talks with the EU proceed.
Magyar portrayed the EU negotiations as central to Hungarys fiscal strategy, linking the release of the frozen funds directly to efforts to reduce the deficit and stimulate the economy. He framed the expected agreement as achievable within the current month, while also acknowledging remaining obstacles and the limited timeframe for using the funds.
Summary: Hungary's new prime minister has ordered a temporary freeze on non-essential government spending for one to two weeks to review a budget he says was left in poor condition. He also reiterated plans to secure more than 10 billion in frozen EU funds this month to help address the budget deficit and economic stagnation.