Pro-European conservative Peter Magyar has become Hungary's prime minister with a commanding majority, pledging to tackle corruption and restore Hungary's access to blocked European Union funds — a major shift from the country's long-running nationalist government.

The political crisis in Romania and the difficulty of forming a new pro-European government pose major risks to fiscal consolidation, foreign exchange market stability, and absorption of European funds, Erste analysts warned in a report cited by Economedia.ro . Erste's current forecast indicated economic growth of only 0.3% in 2026 and an increased risk of a full-blown recession if there is a lower absorption rate of EU funds. Rating agencies keep Romania on the verge of losing investment grade status, and funds of about EUR 7.3 billion under the Resilience Facility (RRF/PNRR) are considered "at risk" if the necessary reforms and legislation are not adopted on time.