Government restructuring is underway in Hungary after last week’s announcement confirming the resignation of Technology and Industry Minister László Palkovics and the subsequent dissolution of his ministry, the TIM, effective from 1 December.
The responsibilities of the TIM will be transferred to Hungary’s economic development, construction and investment, as well as culture and innovation ministries, while the government will also set up an energy ministry; a policy decision Palkovics reportedly disagreed with, leading to his resignation. The new energy ministry will be led by former business executive Csaba Lantos.
Accompanied by the resignation of other, lower-ranking government officials, the dissolution of the Ministry of Technology and Industry marks the first major government restructuring in Hungary since Prime Minister Viktor Orbán formed his fifth government in May. However, it is unlikely to be the last, with other sweeping changes rumoured to be in the offing.
Below, we provide further insight into the ongoing government restructuring and its implications for international businesses.