In a press conference held in Vienna after meeting Austria's Chancellor Christian Stocker, Hungarian Prime Minister Peter Magyar outlined his government's sequencing for fiscal and taxation policy. Magyar said the immediate focus will be on passing a new budget for 2026, citing the current budget's poor condition and high expected deficits following excessive spending by the previous administration.
Magyar noted that tax reforms remain on the government's agenda but framed those changes as medium- and long-term priorities rather than immediate actions. He said discussions about potential adjustments to various taxes can proceed later, and that creating a level playing field for Hungarian and foreign investors will be a component of the government program.
The prime minister also addressed a specific point of contention with Austria, asking for patience before his government takes up the special retail tax that was introduced under former prime minister Viktor Orban. That tax has drawn criticism from Austrian officials, Magyar said, and he indicated his administration will need time before it reconsiders or alters that policy.
On fiscal conditions, Magyar characterised the Hungarian budget as being in poor shape, with the deficit expected to be very high this year. He identified passing a new 2026 budget as the administration's top priority, underscoring the need to stabilise public finances before undertaking major tax policy changes.
In addition to fiscal and tax matters, the prime minister reaffirmed Hungary's stance on migration, stating that the country will protect Europe’s external borders from illegal migration. This commitment formed part of the remarks he delivered in Vienna.
Contextual note: Magyar presented these positions following bilateral talks with Austria's chancellor and requested time to address a controversial retail levy and broader tax overhaul until the immediate budget situation is addressed.