Key takeaways:
- Hungary’s State Audit Office uncovered major financial mismanagement by Hungarian National Bank (MNB)-linked foundations, in an apparent government-initiated showdown against [former MNB governor György] Matolcsy.
- Matolcsy was a key figure in Hungary’s “Eastern Opening”, with the MNB operating a network of foundations, think tanks, and international forums promoting a “Eurasian identity” for Hungary.
- Much of Hungary’s Beijing- and Moscow-friendly think tank network is linked to MNB funding, making it questionable how they will continue to operate in the future.
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Between 2013 and early 2025, György Matolcsy served as the Governor of Hungary’s National Bank (MNB) and was widely regarded as a key ally of Prime Minister Viktor Orbán. In 2024, he was listed as the 15th most influential person in Hungary by the popular “100 Richest Hungarians” list. Matolcsy played a crucial role in the Hungarian government’s “Eastern Opening” strategy, a policy aimed at fostering closer relations with non-Western partners, particularly Beijing and Moscow.
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However, despite their decade-long close relationship, reports of growing disagreements between Orbán and Matolcsy began to surface in early 2024. By late 2024, Matolcsy had become increasingly outspoken in his criticism of Hungary’s economic direction, publicly dismissing Orbán’s economic plans as “unrealistic.” In September 2024, it was announced that Matolcsy’s term as Governor of the National Bank would not be extended in 2025, signaling a clear break in their political partnership.
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Under Matolcsy’s leadership, the MNB played a central role in this strategy, using its financial resources to build ties with Beijing and promote a Beijing-friendly narrative in Hungary. However, the recent scandals surrounding MNB-linked foundations and the broader geopolitical shifts brought about by Donald Trump’s return to the White House are likely to influence Hungary’s strategic direction.
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The apparent freezing of controversial projects, such as the Chinese police patrols in Budapest, suggests a potential recalibration. As Hungary seeks to balance its relations between Washington and Beijing, institutions like the Danube Institute, known for its connections to the American conservative movement, may become more prominent than the MNB’s network of pro-Beijing research institutions. This shift could signal a broader realignment in Hungary’s foreign policy, as the country navigates the increasingly polarized landscape of great power competition.