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Corruption Risks in Hungary

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Hungary faces significant challenges in tackling corruption, with high-risk areas including public procurement, tax administration, and the justice system.

Key Areas of Concern

Public Procurement: Corruption is a major issue in government contracts and licenses.
Tax Administration: Diversion of public funds due to favoritism by government officials is common.
Justice System: Bribery and irregular payments for favorable judgments occur, while political interference in judicial matters is a serious concern.

Anti-Corruption Framework

While an anti-corruption framework exists in Hungary, enforcement gaps exist, particularly in relation to foreign entities. The country is party to all relevant international treaties and conventions pertaining to organized crime.

Challenges in Enforcement

Foreign Entities: Enforcement gaps exist when dealing with foreign entities.
International Treaties: Hungary has ratified all relevant international agreements, but effective implementation remains a challenge.

Criminal Justice and Security

Corruption within the justice system is a moderate to high risk, with bribes and irregular payments for favorable judgments occurring. Political interference in judicial matters is also a serious concern.

Threats to the Justice System

Bribery: Bribes and irregular payments for favorable judgments are common.
Political Interference: Politicians have been known to interfere in judicial matters, including forced retirements of judges.

Economic and Financial Environment

Hungary has a robust anti-money-laundering framework in place that adheres to international standards. However, authorities have failed to make full use of the tools at their disposal in money-laundering investigations.

Risks to Businesses

Tax Administration: Corruption in the tax-administration sector presents a significant risk to businesses.
Anti-Money Laundering: Hungary’s anti-money laundering framework is robust but not always effectively implemented.

Human-trafficking victim-assistance services remain scarce and uncoordinated, although efforts have been made to advance victim support. A national anti-human-trafficking strategy for 2020-2023 was adopted, but several problem areas remain.

Challenges in Human Trafficking Response

Victim Support: Human-trafficking victim-assistance services are lacking.
National Strategy: A national anti-human-trafficking strategy has been adopted, but challenges persist.

Media Landscape

The media landscape in Hungary is deteriorating year-on-year, with media ownership becoming increasingly concentrated in the hands of oligarchs with ties to Hungary’s prime minister. The ruling Fidesz party has asserted control over the public broadcaster, which now praises the government and targets opposition groups.

Threats to Media Freedom

Media Ownership: Media ownership is concentrated among a few individuals.
Public Broadcaster: The public broadcaster has been taken over by the ruling party.