Fidesz-KDNP Alliance Plans Extensive Local Government Reform Post-2026 Elections in Hungary

Government Mandate for Reform

The Hungarian government has granted a mandate to Tibor Navracsics, Minister for Public Administration and Regional Development, to prepare a comprehensive reform package for the country's municipal system. This initiative is planned to proceed if the ruling Fidesz–KDNP alliance secures another term in the parliamentary elections scheduled for 2026. Navracsics announced on social media that while the preparatory phase is currently underway, substantive consultations are expected to commence in early January.

Consultation Process and Key Areas of Focus

The upcoming consultation process will involve a broad range of stakeholders. Initially, discussions will be held with municipal associations, followed by engagements with mayors, local councillors, and county assembly presidents. The objective is to gather feedback from across the local government sector before drafting any concrete legislative proposals.

Minister Navracsics has identified three primary areas that the reform will likely address:

• Local government financing: This includes issues related to local taxes, the solidarity contribution, funding for mandatory tasks, and the financing of local public transport, particularly outside of Budapest.
• The balance of tasks and powers: Examining the distribution of responsibilities between central and local authorities.
• The legal status of mayors: Reviewing the legal framework governing the position and functions of municipal leaders.

Context and Historical Background

Hungary's local government system has been a subject of ongoing debate, with municipalities frequently criticizing what they perceive as excessive centralization and financial pressures. Since 2010, the Fidesz government has been accused of systematically reducing local government autonomy by limiting revenue sources, such as access to personal income tax, and centralizing services like schools and hospitals. The 2025 budget already includes financial and procedural tightening measures affecting local governments.

Future Outlook

Navracsics emphasized that the government does not intend to submit any changes before the 2026 elections. Instead, if the Fidesz–KDNP alliance wins, the ministry plans to present an overarching amendment package to Parliament afterwards. The stated goal is to develop a proposal that is acceptable to all stakeholders, including both local governments and the central government.