Viktor Orban's challenger sees strong EU, NATO ties, 'pragmatic' approach to Russia

By Anita Komuves and Krisztina Than

BUDAPEST (Reuters) - Peter Magyar, the opposition challenger to Prime Minister Viktor Orban, told Reuters he would keep Hungary firmly anchored in the European Union and NATO if he wins elections due in early 2026 and would strive for "pragmatic relations" with Russia.

Magyar's centre-right Tisza Party swept into Hungarian politics last year, mounting the most serious challenge to Orban since he rose to power in 2010. Magyar's popularity has been surging and in some recent polls Tisza has led Orban's Fidesz party.

Orban has been criticised by some EU leaders for his government's ties with Russia and opposition to military aid for Ukraine, while his government is struggling to revive the economy from an inflation shock.

Tisza's dynamic leader, Magyar, a former government insider, said he would unlock billions of euros in frozen EU funds to boost the economy by taking strong steps to curb corruption. He also said he would join the European Union prosecutor's office, a step rejected by Budapest's nationalist government which has been stuck in a rule of law dispute with Brussels.

This row has led to Hungary losing access to vital EU funds.

"We are a member of the EU, this club, and member of NATO...of course, this is an open economy and we need to be on good terms with other powers... and eastern ties are also important, but currently we sell some 80% of our goods in the EU's market," Magyar told Reuters on Wednesday in Tisza's modest office in a Budapest apartment block.

He said his party would fight the elections on its own, ruling out an alliance with other opposition parties.

PRAGMATIC RUSSIA APPROACH

Orban's government has maintained close ties to Moscow, even after the war with Ukraine, and criticised EU sanctions against Russia. He is seen as having close ties with U.S. President-elect Donald Trump.

When asked about his approach to Russia, Magyar said he would act "pragmatically."

"I don't believe that there is friendship in politics...that there is an Orban-Trump friendship or Orban-Putin friendship. There are interests, and it is appropriate if state leaders represent their respective countries' interests...for this allies are needed but these should be value-based alliances."

Hungary is still largely reliant on Russian gas and crude imports and in 2014 Orban granted a contract to Russia's Rosatom without a tender to build a nuclear plant, a project that is ongoing.

"The Paks (nuclear) project cannot be halted I think ... This is an international contract, we can negotiate on many aspects, like in financing as there are disadvantageous parts there, so refinancing could be possible. We need to negotiate pragmatically," Magyar said, adding that his government would adopt a similar stance towards China.

Orban has spearheaded a drive in central Europe to bring Chinese EV and battery manufacturing plants to Hungary, and is now betting on new plants by BYD and CATL to boost the economy from the second half of 2025.

Magyar said while foreign direct investments were important for the economy, betting on Chinese and South Korean car battery makers was a mistake.

"A country can be sovereign, really independent, if it has a strong economy...if it is not reliant on Chinese loans or Russian influence or "help", but stands on its feet."

(Writing by Krisztina Than; Editing by Sharon Singleton)