The Hungarian government has unveiled a HUF3.5 trillion (€9.7bn) ten-year railway development programme aimed at reversing decades of underinvestment, modernising rolling stock and improving the competitiveness of rail transport, state news agency MTI on July 22.

Prime Minister Peter Magyar and Transportation and Investment Minister David Vitezy presented the ten-year development plan on July 22, describing rail infrastructure as a strategic priority for economic competitiveness, labour mobility and regional development.

The programme marks one of the Tisza government's largest infrastructure initiatives since taking office. The administration has made transport modernisation a key priority alongside efforts to accelerate the absorption of EU funds that had been largely frozen under the previous government due to rule-of-law disputes with Brussels.

The programme, running until 2035, will be financed through a combination of HUF1.1 trillion in EU cohesion funds, HUF700bn from the EU's RRF scheme, HUF400bn in European Investment Bank loans, HUF400bn through concessions and HUF950bn expected from the EU's 2028-34 budget cycle.

The government aims to cut the average age of Hungary's railway fleet, raise average speeds on main lines to at least 100 km/h, expand electrification and improve suburban and regional rail services, and integrate train and bus timetables.

The plan also includes the procurement of at least 35 new InterCity trainsets and 42 new suburban HEV trains, the refurbishment of the country's ten busiest railway stations, and preparations for a rapid rail link between Budapest's Liszt Ferenc International Airport and the city centre.

Further studies will examine future high-speed rail connections with neighbouring countries, including a connection to Warsaw.

Vitezy said the programme would support economic growth by improving connectivity, increasing labour mobility and strengthening freight transport, while encouraging a shift from road to rail.

The government would extend the Metro 3 line on the northern part of the city with a direct railway connection, also funded by EU money.

The minister acknowledged that major reconstruction works could temporarily disrupt services, with simultaneous upgrades on four or five main lines possible in coming years, but argued that the investments would lay the foundations for railway development across multiple government terms.

Magyar criticised the Orban government’s rail policy, saying Hungary had fallen behind regional peers after years of neglect. The average age of rolling stock is 43 years, that almost half of passenger seats are on trains without air conditioning, that roughly 40% of the network is subject to speed restrictions, and a quarter of MAV's vehicles are currently out of service, he continued.

Poor public services, especially in transport, healthcare and education, were among the factors that eroded support for Fidesz. Vitezy said his predecessor abandoned several Budapest transport projects in retaliation after Fidesz lost in the elections.