The series continues as we report on developments following April’s historic election and on the steps taken since then by the Tisza government. This week, we cover the following topics:

• Orbán’s former right-hand man in custody.
• What did we learn from Tisza’s first budget?
• Ursula von der Leyen to give a speech on the anniversary of the revolution.
• Poll of the week: more than four million people back Tisza.

Orbán’s ex-right-hand man in custody

The last time a central bank governor was taken into custody in Hungary was in 1944, during the German occupation, as Válasz Online pointed out. This 82-year hiatus ended on Wednesday (21 October), when György Matolcsy was taken into police custody.

But Matolcsy is not simply a former central bank governor; he is one of the architects of Orbán’s economic policy, a key figure in the former prime minister’s system, and together with his family he has in recent years become one of the symbols of Fidesz’s taste for luxury.

Who is György Matolcsy?

“I have a very strong emotional relationship with Matolcsy. I owe him a great deal, I have learned a great many things from him. Matolcsy is an economist of historic stature,” prime minister Péter Magyar quoted ex-prime minister Viktor Orbán’s words from an interview last November, after the former central bank governor had been taken into custody.

Matolcsy was a member of the Hungarian Socialist Workers’ Party (MSZMP), and after the regime change he became prime minister József Antall’s chief adviser. In 1999 he joined Orbán’s advisory board, and from 2000 to 2002 he served as economy minister in the first Orbán cabinet.

Even after the 2002 election defeat he remained loyal to Orbán, and in 2010 he became minister for national economy, meaning he was put in charge of both the finance and economy portfolios at the head of a merged super-ministry. It was at this time that Orbán called him his right-hand man.

Matolcsy was the architect of Orbán’s “unorthodox economic policy”; he oversaw the nationalisation of private pension funds, the sending home of the IMF from Hungary, and the introduction of high sectoral surtaxes.

The great bank heist

He was appointed central bank governor in 2013, and by 2016 the foundations scandal had already broken. It emerged that 266bn forints’ worth (€840m) of public assets had been shifted into the foundations of the Hungarian National Bank (MNB). These foundations bought buildings and works of art, and also granted substantial benefits to their own leaders.

Later, the foundations’ money was entrusted to an asset management company, which obtained further funds and thus came to control assets of around 500bn forints, of which some 400bn forints (€1bn) – was public money.

This asset manager built up an international corporate network, behind which stood the central bank governor’s son, Ádám Matolcsy, and his circle. The asset manager bought into risky foreign companies, spending a significant part of its resources. The Matolcsy family visibly became very rich, and Ádám also amassed a notorious Porsche collection.

György Matolcsy’s mandate expired in 2025, and after his departure the State Audit Office also concluded that abuses may have taken place at the central bank. For a long time, however, no police investigation was launched.

The current case

The current charges relate to a case that unfolded in the final days of Matolcsy’s activity as central bank governor. Matolcsy wanted to ensure that his family would control the roughly 500bn forints (€1.25bn) of central bank assets even after he no longer held office.

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The series continues as we report on developments following April’s historic election and on the steps taken since then by the Tisza government. This week, we cover the following topics:

• Another blow for Hungary’s richest man;
• New chief prosecutor nominee, plus a former chief prosecutor ready to testify on political pressure;
• Parliament has adopted the new child-protection law;
• A state secretary has unexpectedly left the government;
• Orbán to keep quiet on one of Hungary’s most important national holidays;
• Ukraine adopts the minority education law;
• More EU funds and money from the Norway Grants have become available.

Another blow for Lőrinc Mészáros

Last Friday (9 October), prime minister Péter Magyar and Dávid Vitézy, minister for transport and investments, announced that the state was suspending implementation of one of Hungary’s largest rail projects – the Budapest southern circular railway, and will launch a new public procurement procedure.

The works had been carried out by V-Híd, the most profitable company of Lőrinc Mészáros, who became Hungary’s richest man during Viktor Orbán’s premiership.

However, the European Court of Auditors uncovered serious public-procurement irregularities: V-Híd may have colluded with the company that drafted the project plans and thus already possessed information at the time of the tender that its competitors did not have. Because of this, the European Court of Auditors would withdraw EU funding from the project.

The Hungarian government does not want to forfeit the EU money and make Hungarian taxpayers foot the bill for the costs of the project, which is why it is terminating the contract with Mészáros’s company and launching a new tender.

The Hungarian state had already taken away from Mészáros the right to operate a motorway section, and later also terminated the 35-year motorway concession.

Previously, one of his food-industry companies had EU funding already granted to it withdrawn, while his energy company was excluded from a call for proposals financed from the repatriated RRF funds.

New chief prosecutor nominee, plus former chief prosecutor ready to testify

On Monday (12 October), president András Baka nominated a former chief prosecutor, Péter Fejes, for the post of chief prosecutor. His first nominee, Zoltán Szathmáry, was not voted through by the Tisza group in parliament after it emerged that his brother was implicated in the so-called gold convoy case, in which a Ukrainian cash shipment was stopped and confiscated by the Hungarian authorities.

Fejes was dismissed in 2012 from his position as chief prosecutor of Vas county by Péter Polt, the chief prosecutor serving the Orbán system, citing loss of confidence. Since then he has continued to work within the prosecution service and as a university lecturer, and he has no party affiliation. For the time being neither prime minister Magyar nor the Tisza group has stated whether they support Fejes’s nomination.

Since the change of government, another former chief prosecutor, Pál Fürcht, has frequently spoken to the media. Among other things, he has claimed that the gold convoy case was created for political purposes, and that the authorities raided the Ukrainian cash couriers on Orbán’s orders.

On Sunday (11 October), Magyar sharply criticised Fürcht in a Facebook post, reproaching him for having been a servant of the system himself. According to Magyar, Fürcht constructed a criminal case, on political orders, out of the notorious nightclub altercation for which the prime minister is currently under investigation on charges of theft.

It was likewise Fürcht who left former propaganda minister Antal Rogán out of the corruption case known as the Völner–Schadl affair.

In response to Magyar’s criticism, Fürcht said he was ready to make an official statement before any authority. In parliament on Monday, the prime minister was already referring to the former chief prosecutor as a future witness.

Parliament has adopted the new child-protection law

Child protection was one of the most important topics of the campaign and played a major role in Orbán’s downfall. Magyar kept the issue on the agenda even after his government took office; most recently, last Thursday, the prime minister and the state secretary responsible for the field, Szilvia Gyurkó, presented the report on the children’s home in Bicske.

This home had been run by a director who was decorated by Orbán and later convicted of paedophile crimes, together with his deputy, who helped cover up the abuses. The presidential pardon granted to the deputy shook the Orbán government and helped lead to its collapse.

On Tuesday (13 October), parliament adopted an amendment to the child-protection law, which takes a tougher stance against media content accessible to minors that propagates sexual violence, manipulation and exploitation, and would speed up the placement of babies abandoned in hospital.

The amendment removed those homophobic passages that the Orbán government forced into law in 2021, and which the Court of Justice of the European Union also ruled to be contrary to EU law.

Fidesz, the Christian Democratic People’s Party (KDNP) and the far-right Mi Hazánk did not vote for the amendment; Magyar called this a disgrace.

A state secretary unexpectedly leaves the government

On Tuesday, András Tótth, state secretary for energy at the Ministry of Economic Affairs and Energy and minister István Kapitány’s most important aide, unexpectedly resigned.

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More than a year ago, we launched our Hungary Briefing, a weekly round-up of the election campaign. Since the historic vote in April to remove Viktor Orbán’s Fidesz government, the series has followed the new Tisza administration and its first moves in office. This week’s topics:

• How Viktor Orbán used Lőrinc Mészáros.
• According to Orbán, they deliberately did not give money to the liberals.
• Orbán’s brother also has a gold-convoy case.
• A wealth tax is coming.
• Support for Hungarian media beyond the borders.
• This week’s opinion polls: slight drop for Tisza, strong support for the Olympics

How Viktor Orbán used Lőrinc Mészáros.

The investigative outlet Direkt36 revealed important details about the links between Lőrinc Mészáros’s companies and Orbán-era propaganda in a new series of articles. The investigators obtained internal documents from a company called V-Híd, which showed that the firm belonging to the Mészáros portfolio paid out several billion forints between 2022 and 2026 to influencers in the Megafon network.

The oligarch was not stingy.

V-Híd is one of the most important and most profitable companies in the Mészáros empire, primarily engaged in railway construction. It owes its success almost entirely to the fact that it won huge public procurement contracts under Fidesz governments.

In recent years, V-Híd has become the dominant player in railway construction in Hungary, pushing out its competitors. Enormous dividends have been taken out of the company by the Mészáros clan (most recently, despite weaker results, 10 billion forints, or around €25m).

The Direkt36 article also reveals that Orbán-era propaganda was financed directly from the company’s revenue. Donation contracts were leaked showing that V-Híd regularly sent hundreds of millions of forints as “gifts” to Megafon. In 2024 alone, they sent 3 billion forints (around €7.6m at the time) in support to the influencer network.

The path of public money to propaganda

The formula was very simple: through public procurement, the government stuffed the Mészáros group’s companies with public money, and part of the revenue generated was channelled to the propaganda machine.

From 2020, Megafon was a key communication channel for Fidesz, where well-known influencers conveyed the party’s messages and huge sums were spent on online advertising.

The money won through public tenders did not only go towards financing propaganda. Direkt36 also uncovered luxury perks V-Híd and other Mészáros companies offered their staff.

Many would envy V-Híd’s team-building events. In 2024, nine employees of the company travelled by private jet to a château in south-western France, at a cost 62 million forints, or about €150,000, including €500 spent on cigars.

According to Direkt36, V-Híd has spent more than 1 billion forints in total – roughly €2.5m – on foreign trips in recent years.

On one trip to Tajikistan, V-Híd paid out €46,000 – the Central Asian country is a popular destination for exotic hunting excursions, and Mészáros also took part in such a hunting tour.

The Mészáros clan were also keen on yachting and spent money on private jets. One private jet linked to the Mészáros family was used at least once by Orbán himself.

The money did not go to the liberals

Fidesz has tied itself in knots after the arrest of culture minister Balázs Hankó. Hankó is suspected of aggravated breach of fiduciary duty causing particularly significant financial loss, committed in a criminal conspiracy, and the court has placed him in pre-trial detention.

The Hankó case blew up shortly after the elections, when activist Áron Molnár revealed that the National Cultural Fund had disbursed more than 17 billion forints (around €44m) to artists close to Fidesz for the purposes of the party’s campaign.

After a few months of investigation, the authorities reached the former minister, now a member of parliament, who said the allocation of grants had been lawful and that a politically-motivated show trial had been launched against him.

Shortly before he was taken into custody, Hankó told HírTV, a Fidesz-friendly channel, that being a Fidesz member or linked to Fidesz had never been a precondition for receiving NCA funding.

Orbán, however, explained the Hankó case differently in a speech at a closed-door event, from which former state secretary Péter Takács shared a clip. According to Orbán, Hankó was the only culture minister since 2010 who did not give support to the “liberals in Budapest”, and that is why, in his view, he was locked up.

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