This autumn, the procedure under Article 7 of the Treaty on European Union concerning Hungary, which has been ongoing since 2018, will be on the agenda of the General Affairs Council once again. At the heart of the procedure lies the risk of a serious breach of the EU’s fundamental values – these include respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights. This procedure covers a number of issues related to the rule of law and human rights that are not addressed by other EU procedures.

As Hungarian civil society organisations, we have been monitoring the progress of the procedure from the outset and have, on several occasions, produced analyses highlighting shortcomings in specific areas and formulated recommendations to improve the situation.

Since the new government took office, positive developments and important legislative and other steps have taken place in many areas covered by the Article 7 procedure. However, these remain far from comprehensive, and in some areas the promised changes have yet to materialise. As we noted in our flash report of June 2026 on the Article 7 procedure, it is clear that the elimination of legislative provisions and practices that violate human rights and have undermined the rule of law and democracy is a time-consuming process, and must go hand in hand with establishing the organisational and personal guarantees of institutional independence, which is essential for the stability of a democratic state governed by the rule of law. Furthermore, the issues covered are complex, and in many areas, comprehensive measures are required to eliminate the risk of breaching the EU’s fundamental values. As civil society organisations, we wish to support these changes moving forward.

Therefore, in our new assessment, we take stock of the issues covered by the Article 7 procedure, summarising the forward-looking steps taken and the problems still awaiting resolution, and formulate questions and recommendations regarding each topic. Through this, we aim to contribute to the common goal of ensuring that the reforms that have started lead to lasting institutional, legislative and practical changes and safeguards that ensure compliance with the EU’s fundamental values.

The Streetlawyer assessed Economic and Social Rights in Hungary as follows:

Previous shortcomings in the field of economic and social rights still persist.

The rules governing individual employment relationships have not been amended. The provisions of Act I of 2012 on the Labour Code that favour the interests of employers, typically in large-scale industry, to the detriment of employees remain unchanged (for example, the cap on arrears of wages recoverable in labour disputes, the reference period for the calculation of working time, and temporary agency work). In 2023, the CJEU ruled that daily rest must be granted before weekly rest, and that the two rest periods cannot be subsumed into one another. Since then, the Kúria has confirmed this interpretation in numerous judgments by recognising employees’ entitlement to wage supplements where working time has been scheduled unlawfully. However, as the Labour Code has not been amended accordingly, the legislation remains incompatible with EU law.

There have been no substantive changes to collective labour relations, and the right to strike remains significantly restricted, particularly for public service employees. It is nevertheless welcome that, following consultations with a stakeholder group, the strike entitlements of employees in public education were amended to strengthen teachers’ interests, making it easier to organise warning strikes. The ECtHR is expected to deliver its judgment in October 2026 in Teachers’ Trade Union and Teachers’ Democratic Trade Union v. Hungary, concerning the minimum services that teachers are required by law to provide during a strike.

The amount of the “social reference base” also remains unchanged. Like the minimum old-age pension, it serves as the calculation basis for determining numerous social benefits and reductions in costs and fees. The amount of the “social reference base”, which is established not by statute but by a government decree, has remained unchanged at HUF 28,500 (EUR 77) since 2008. In the face of rising inflation, this amount is no longer sufficient even to meet basic subsistence needs.

The amount of the family allowance paid in respect of children has likewise not been indexed since 2008. Under Act LXXXIV of 1998 on Family Support, the monthly allowance for one child is HUF 12,200 (EUR 33). While family support provided in the form of tax allowances disproportionately benefits higher-income families, the removal of children from their families for financial reasons, particularly due to inadequate housing, remains a concern. The Commissioner for Fundamental Rights drew attention to this problem as early as 2017 in a report.

Article XXII (3) of the Fundamental Law continues to prohibit habitual dwelling in public spaces, thereby criminalising homelessness. The CC has refused to annul the respective provision of the misdemeanour law, despite the UN Special Rapporteur on the right to adequate housing having found the legislation to be in breach of international human rights law. It is nevertheless welcome that, in May 2026, the CC clarified that begging may be punished “only where the conduct in question directly endangers the safety of the person solicited for the purpose of obtaining money, or the public-purpose use of public space”.

Recommendations:

• The government should take steps to establish a comprehensive reform guaranteeing the right to strike for public service employees. 
• The amounts of the “social reference base”, used to calculate social benefits and fee and cost reductions, and of the family allowance should be set in an Act of Parliament, and both should be indexed to inflation.
• Article XXII (3) of the Fundamental Law, which criminalises homelessness, should be repealed.

The assessment is available in both Hungarian and English.

Barabás Szemenyei, a lawyer admitted to the Budapest Bar, contributed to the labour law section of the Economic and Social Rights chapter.

Contributing civil society organisations: Amnesty International Hungary, Háttér Society, Hungarian Civil Liberties Union, Hungarian Helsinki Committee, K-Monitor, Mérték Media Monitor, Streetlawyer Association.