EU Insight 17 April 2026

Brussels, 17 April 2026

ORBAN’S ERA ENDS AS MAGYAR SECURES LANDSLIDE VICTORY IN NATIONAL ELECTION

Hungary’s long-serving Prime Minister Viktor Orbán was unseated after 16 years in power, with opposition leader Péter Magyar securing a decisive victory amid record voter turnout. The result marks a major political shift, potentially bringing Hungary closer to the EU after years of tensions and disputes over the rule of law and democratic standards. Magyar’s party secured a two-thirds majority, enabling far-reaching institutional reforms, including changes to the constitution and governance structures shaped by Orban’s Fidesz party. While campaigning on anti-corruption and democratic renewal, he has signalled a more constructive approach towards the EU, raising expectations that frozen EU funds for Hungary could be unlocked and that Budapest may lift its block of EU support for Ukraine.

DIPLOMATIC TALKS CONTINUE AS EU MOVES TO SOFTEN ECONOMIC FALLOUT

Indirect talks between the United States and Iran on extending the current two‑week ceasefire beyond 22 April are ongoing, alongside US‑brokered discussions between Israel and Lebanon on a possible ceasefire. While the outcome of these efforts is still uncertain, the EU is increasingly focused on the economic fallout, with higher energy prices and supply chain disruptions already affecting European businesses and consumers. The Commission is consulting Member States on a Temporary Crisis Framework for State aid to support the most exposed sectors, such as agriculture, fisheries and transport. It has also activated the so-called EMFAF crisis mechanism, enabling governments to provide financial compensation and storage aid to fisheries and aquaculture operators for costs linked to the crisis until the end of 2026.

€1.07 BILLION FOR NEW EUROPEAN DEFENCE FUND PROJECTS

The Commission will invest €1.07 billion across 57 new European Defence Fund (EDF) projects, supporting the Defence Readiness Roadmap 2030 and the flagships covering the Eastern flank, air, space and drone defence. The projects cover critical areas such as AI, cyber defence, and drone/counter-drone systems, with over 15 directly linked to the flagships. Others will reinforce key enabling domains, including sensors, digital transformation, or cyber technologies. The EDF will also support ‘sub-calls’ for European and Ukrainian start-ups and SMEs to help mass-produce cost-efficient drones with grants of up to €60,000. The Commission will now work with selected groups to prepare grant agreements, with a view to signing them by the end of 2026.

PARLIAMENT AND COUNCIL ALIGN ON NEW STEEL TRADE MEASURE

Parliament and Council negotiators have reached a provisional agreement on a new regulation to revise the EU’s steel trade regime. The deal responds to structural global steel overcapacity, which is expected to reach roughly 721 million tonnes by 2027, thereby exceeding fivefold European demand. The deal would reduce tariff-free steel import quotas by about 47% to 18.3 million tonnes per year and raise duties on volumes above that level. It also introduces a ‘melt and pour’ requirement, so the place where steel is first produced in liquid form is considered when allocating quotas. The agreement now needs formal approval by both institutions so that the new regime can replace the current safeguard measures when they expire at the end of June.

MEPs ADVOCATE FOR HIGHER EU BUDGET TO MEET RISING POLICY DEMANDS

The European Parliament’s Budgets Committee has adopted its draft position on the 2028-2034 EU budget. MEPs call for an increase to 1.27% of EU GNI, around 10% above the Commission’s proposal, and want repayments on NextGenerationEU borrowing to be excluded from the spending ceilings. They argue this is needed to equip the EU to respond to geopolitical, economic and environmental challenges while keeping the budget focused on investment for citizens, regions and businesses. They underline that new priorities such as defence and competitiveness must not come at the expense of agriculture and cohesion policy. The report also stresses transparency, democratic oversight and the need for new revenue sources, such as a digital services tax or online gambling levy.

COMING UP NEXT WEEK

• 21 April: Foreign Affairs Council. On the agenda: Russia’s war of aggression against Ukraine, situation in the Middle East, the South Caucasus, and Sudan.
• 22 April: College of Commissioners. On the agenda: Communication on energy issues.
• 23-24 April: Informal meeting of Heads of State or Government. On the agenda: Geopolitical environment and EU response, EU long-term budget 2028-2034.

LET’S MAKE EVERY KILOMETER COUNT! SUPPORT OUR 20KM RUN

This year, Kreab will be taking part in the 20 km of Brussels with an amazing team of 14 runners! Our team has decided to run in support of Pelicano, an organization that helps children growing up in poverty.

For many children, having a filled lunchbox, wearing appropriate clothing, or joining activities with friends is not a given. In Belgium, more than 300,000 children grow up in poverty. Pelicano is working to change this by providing direct financial support, helping break the cycle of poverty — one child at a time.

With every step we take during the 20 km of Brussels, we want to contribute to giving these children the opportunities they deserve.

If you believe that every child deserves equal opportunities, we would be incredibly grateful for your support. Every contribution truly makes a difference.

Donate here