One of the most significant elements of the draft legislation is the comprehensive reform of the asset declaration system, which aims to enhance transparency in public life and strengthen measures against corruption. The proposed amendments are intended to fulfil the European Union's rule of law requirements, with particular emphasis on improving the verifiability of public officials' financial interests and reinforcing public accountability. The proposal standardises both the content of asset declarations and the procedure for submitting them. In the future, declarations will be submitted exclusively through an electronic platform. Beyond simplifying administration, the digitalisation of the system is intended to improve the accessibility and verification of submitted declarations. The scope of persons required to file asset declarations will also be considerably expanded. In addition to Members of Parliament, the obligation will extend to other officials of political parties receiving public funding from the state budget, including party presidents, as well as the heads of several constitutional and independent public bodies. These include, among others, the State Audit Office, the Constitutional Court, the Hungarian Competition Authority, the National Bank of Hungary and the National Election Office. In specified cases, the obligation will also extend to the family members of public office holders.
Alongside these changes, the powers of the Integrity Authority will be significantly expanded. The Authority will be empowered to independently verify the accuracy of asset declarations and may request information from any individual or organisation concerned in a given case. Following its investigations, it will not only be entitled to issue recommendations but will also be authorised to impose administrative fines ranging from HUF 100,000 to HUF 5 million in cases involving less serious infringements. Where serious deficiencies or intentional misstatements are identified, the Authority may initiate further legal proceedings or recommend additional legal consequences. Failure to comply with asset declaration obligations or the intentional submission of false information may give rise to formal proceedings and other legal consequences, including proceedings declaring the office holder unworthy of holding office.
Another significant institutional reform concerns the system of public interest asset management foundations performing public functions. This reform has already been reflected in the Sixteenth Amendment to Hungary's Fundamental Law, which provides that assets transferred by the State to such foundations, will automatically and free of charge revert to the State as legal successor upon the dissolution of the foundation. These amendments are intended to address the concerns raised by the European Commission regarding conflicts of interest and the transparency of the governance of such foundations.
The legislation also strengthens the transparency of public subsidies. To this end, it substantially expands the category of public office holders who are prohibited from applying for or receiving financial support financed from public funds, thereby further reducing the risk of conflicts of interest.
The proposed amendments to Hungary's public procurement legislation are likewise aimed at enhancing transparency in the use of public funds and reducing corruption risks. Procurement documents will become fully accessible to the public through the Electronic Public Procurement System without the need for prior registration. At the same time, the role of the Integrity Authority within the public procurement remedies system will be further strengthened as well.
Overall, the draft legislation represents a comprehensive package of institutional and legislative reforms designed to address the outstanding rule of law commitments undertaken by Hungary. If adopted, the proposed measures are expected to play a central role in satisfying the European Commission's conditions for the release of suspended EU funds, while simultaneously strengthening transparency, accountability and anti-corruption safeguards within the Hungarian legal system.