European Union funds have helped finance thousands of projects in Hungary, but many are criticized as useless, unfinished or examples of mismanagement and possible corruption. With some funding now blocked due to concerns about the rule of law, the issue has become central to the elections
The sign proudly announces that the roundabout near Zalaegerszeg in western Hungary was built with 500 million forints (about 1.3 million euros) from European Union funds.
The roundabout was built to serve a container terminal on a new railway line that would help provide this landlocked part of Central Europe with better access to the sea. Instead of having to pass through Budapest, Hungary’s capital, goods arriving from the Adriatic coast would quickly transit through the west of the country to Slovakia, the Czech Republic, Poland and beyond.
But there is a problem. Years after the roundabout was built, there is still no railway line. Instead, the roundabout sits unused in a field, waiting for the Hungarian government to build the railway that would make it useful.
Critics of Prime Minister Viktor Orbán say EU-funded construction projects like this are a monument to the economic system his government built over its 16 years in power. Orbán’s electoral success, they argue, has combined an incessant demonization of the EU – portraying it as a decadent, liberal and corrupting force in Hungary – while willingly accepting large amounts of money from it.
Much of that money came from initiatives aimed at helping the bloc’s poorer, newer members – many of whom were part of the Warsaw Pact – move closer to their wealthier neighbors in the West. But, ahead of the decisive parliamentary election on Sunday, opponents are asking what Hungary has to show for all this investment, pointing to a series of projects they consider vanity, and unfinished or unnecessary constructions.
The sign next to the roundabout announces that it was built with 503.37 million forints (around €1.3 million) of EU funds. (Mark Esplin/CNN)
“Orbán was the biggest rent-seeker in the European Union in the 2010s. It was a conscious strategy,” Krisztián Orbán (no family relation), founder of Oriens, an investment company in the region, tells CNN. He also highlights the government’s success in capturing the allocated funds, compared to its neighbors, adding that Orbán “was able to bring in a huge amount of money from the EU.”
The roundabout near Zalaegerszeg, first reported by the Hungarian investigative website , is one of tens of thousands of projects in Hungary that have received EU funding since Viktor Orbán came to power. Tibor Navracsis, regional development minister, last year told the Hungarian parliament that the EU financed projects in the country during the 2014-2020 budget period.
István János Tóth, director of the Budapest Corruption Research Center, who is originally from Zalaegerszeg, considers the roundabout to be a clear example of a “white elephant” – a construction project that is expensive, both in construction and often in maintenance, but offers little value.
“Without European funds, Orbán would not have been able to establish this type of system,” he says in statements to CNN.
Corruption monitoring organization Transparency International ranked Hungary as the most corrupt country in the EU. CNN has asked Hungary’s foreign ministry and the prime minister’s office for comment. The Hungarian government usually denies accusations of corruption or accuses its opponents of being corrupt.
The railway that would make the roundabout useful may not be built until 2029, Atlatszo said. (Mark Esplin/CNN)
Work on the roundabout began during the current EU budget period, which runs until 2027. After acquiring land, Metrans – a logistics company operating in the region – planned to build a container terminal linked to the new railway, also scheduled for construction.
At one in 2021, Hungarian Foreign Minister Péter Szijjártó laid the foundation stone for the new terminal. By the end of 2023, the local municipality – with the help of EU funds – had built the roundabout that would support logistics around the terminal, Zoltán Balaicz, mayor of Zalaegerszeg, explains to CNN.
But when CNN visited the site in April, there were no signs that construction on the planned railroad had begun. Balaicz states that the project was still in the public bidding phase. Those who win the contract will have more than two years to build the line, according to Atlatszo, meaning the railway – if built – may not be ready until 2029.
The roundabout near Zalaegerszeg is not the only unfinished or barely useful project in Hungary to have received EU funds. David Pressman, former US ambassador to Hungary, said during his tenure that construction projects did not always live up to their promises.
“What an extraordinary view from another of Hungary’s EU-funded ‘forest walkways’ in Hatvan,” he wrote on social media in 2024, when he posted photos of himself on a boardwalk – with no forest in sight.
Other examples, reported by Hungarian media, include one intended to offer views to tourists but which is less than a meter high.
Critics say Hungary is full of such projects, often financed by the same institution that Orbán criticizes.
“Instead of confronting an economy that has collapsed, Orbán points to hostile external forces… that supposedly threaten Hungarians and Hungarian identity,” says Pressman.
“It is much easier for the leader of the country classified as the most corrupt in the European Union to talk about ‘civilizational struggles’ than to explain the extraordinary wealth that his family has accumulated while his people and economy suffer,” he continues.
Allegations of “interference”
The issue of EU funds is playing a significant role in the campaign for Sunday’s parliamentary elections.
Since 2022, the European Commission has withheld funds from Hungary due to concerns about democratic backsliding and judicial independence. Last year, around 18 billion euros remained blocked – representing around 10% of the country’s GDP. At the end of last year, members of the European Parliament again raised concerns about violations of the rule of law in Hungary, as well as corruption and “misuse of EU funds”.
Krisztián Orbán claims that the flow of EU funds during the first decade of Orbán’s term meant that “he managed to get away with many things, including corruption, including neglect of public services, because he managed to ensure constant improvements in the living conditions of people who were not used to it”. Now that these funds are blocked, this balance is breaking down, ponders the economist.
Orbán and his allies, including US Vice President JD Vance, who traveled to Budapest this week to support the prime minister, have accused the EU of interfering in the Hungarian elections due to withholding funds. The Commission maintains that EU Member States must respect the rule of law to receive funding.
Péter Magyar, leader of the opposition Tisza party, promised to unblock EU payments as he responded to the bloc’s concerns about democratic backsliding in Hungary. He has waged an intense campaign against corruption, accusing Orbán and his allies of enriching themselves while the country has become impoverished. Still, Magyar would face a significant challenge in meeting EU demands and unlocking some of the funds before the August 31 deadline.
The Tisza party has maintained a double-digit lead over Orbán’s Fidesz party in most polls for more than a year. While a Magyar victory would mean the end of what corruption expert Tóth describes as Orbán’s “biting the hand that feeds him” approach to the EU, Hungary will continue to need financial help from Brussels – including in Zalaegerszeg.
Balaicz, the mayor, says that once the Hungarian government builds the planned railway, the municipality could then build a second roundabout to support logistics around the container terminal. This will cost an additional 954 million forints (around €2.5 million), also coming from an EU fund.
