Budapest, Hungary — April 21, 2026 Hungary’s Péter Magyar plans to visit Vienna by May 20 to strengthen relations with Austria, which deteriorated under former Prime Minister Viktor Orbán, amid ongoing tensions over Hungary’s special sectoral tax affecting foreign retailers.
Diplomatic Efforts and Political Context
Péter Magyar’s upcoming trip to Vienna signals a shift in Hungary’s diplomatic approach toward Austria, a relationship strained during Orbán’s tenure. Orbán had cultivated close ties with Austria’s far-right FPÖ party, particularly with National Council President Walter Rosenkranz and FPÖ leader Herbert Kickl. Magyar’s visit aims to reset these relations, focusing on economic and political cooperation.
The deterioration of Hungary-Austria relations under Orbán was marked by disputes over policies affecting Austrian businesses operating in Hungary. Magyar’s outreach follows a phone conversation with Austrian Chancellor Christian Stocker the day after Hungary’s April 12 election, suggesting a willingness to engage in dialogue.
EU Blockade and Tax Dispute
A major point of contention between Hungary and the EU—and indirectly Austria—is Hungary’s special sectoral tax, which has disproportionately impacted foreign-controlled retailers like Spar. The EU Commission has blocked over 17 billion euros in funds due to this tax dispute, though 10.2 billion euros were released in 2023.
The EU Parliament has appealed the decision to release these funds, leaving the issue unresolved. The tax has drawn criticism from Austria, where businesses have faced financial strain due to Hungary’s policies. Magyar’s visit may address these economic tensions, though no specific agenda has been disclosed.