The Hungarian government has submitted a far-reaching package of anti-corruption and transparency measures to parliament as it seeks to unlock €16.4bn frozen EU funding, hvg.hu writes.

The legislative package, submitted late on June 9, is designed to meet the so-called “super milestones” attached to the EU’s RRF, which have been withheld due to rule-of-law and corruption concerns. Tisza is implementing commitments stemming from a political agreement reached late last month between Minister Peter Magyar and European Commission President Ursula von der Leyen on the release of EU funds, local media added.

The draft law would tighten Hungary’s asset declaration regime, significantly expand the powers of the Integrity Authority, increase transparency in public procurement and financial transactions, and dismantle most public asset management foundations established under the previous government.

Speaking to broadcaster ATV, Magyar said the government's role was not merely to satisfy Brussels, but to create a system in which public officials can be genuinely held accountable for their wealth and financial interests.

The rules would make it a criminal offence for MPs to intentionally file false asset declarations, punishable by up to two years in prison, with failure to declare also subject to criminal penalties.

For years, Hungary’s asset declaration system has been criticised as ineffective because declarations were difficult to verify and carried few practical consequences.

Under the proposed reforms, the Integrity Authority would gain substantially broader investigative powers. In the future, it could examine the asset declarations of MPs' close family members and challenge decisions to close corruption investigations involving EU-funded projects. In certain cases, it could seek the removal of public office holders through legal procedures.

The circle of people required to file asset declarations would also expand significantly, and include senior officials of state institutions, and leaders of political parties receiving public funding would be covered by the rules.

The reforms could therefore affect a wide range of political actors, including figures associated with the previous Fidesz-led administration.

Another major pillar of legislation addresses concerns over public procurement, an area that has long been at the centre of disputes between Budapest and Brussels. The European Commission has repeatedly raised concerns about limited competition in Hungarian tenders and the concentration of contracts among politically connected businesses.

The proposed legislation would strengthen transparency requirements, broaden disclosure obligations and reduce single-bid tenders. Authorities would also gain additional tools to monitor conflicts of interest in procurement procedures.

The government is also proposing greater transparency in private investment structures that have often been criticised for their opaque ownership arrangements. Private equity and venture capital funds would be required to disclose their ultimate beneficial owners, including individuals exercising effective control over investments.

The reforms would bring Hungarian legislation closer to EU standards on anti-money laundering and ownership transparency, areas where Brussels has repeatedly called for stronger safeguards.

Perhaps the most politically sensitive element of the package is the planned dismantling of public-interest asset management foundations, known as KEKVA.

These foundations became a defining feature of former prime minister Viktor Orbán’s governance model. Beginning in 2021, substantial state assets, including universities, cultural institutions and strategic holdings, were transferred into foundations run by boards whose members often included government allies and political appointees.

The arrangement drew criticism from opposition parties and EU institutions, which argued that public assets were effectively placed beyond democratic oversight while foundation boards enjoyed extensive autonomy.

Under the new proposal, most foundations that do not operate universities would be dissolved by the end of August. Assets originally transferred from the state would revert to state ownership.

One of the flagship institutions affected is MCC, an educational institution dubbed by many as the breeding ground for the Fidesz elite. After receiving hundreds of billions of forints worth of state assets (MOL and Richter shares), MCC has become one of the most influential conservative intellectual organisations in Central Europe and also a platform for Orban’s EU-sceptic policy with branches in Brussels. It served as the platform,

University foundations would receive a one-year transition period while a new governance model is developed. The government says the aim is to restore university autonomy and strengthen the powers of academic senates.

A separate constitutional amendment approved by parliament’s legislative committee would clarify that only assets originally transferred by the state, together with any proceeds or replacements, would revert to state ownership upon dissolution. The amendment also confirms the state's right to dissolve the foundations.