Peter Konsek stood on the Chain Bridge, gazing out over the Danube. The river, flowing steadily beneath him, seemed to mirror Hungary’s economic landscape—strong and enduring on the surface, yet roiled by unseen currents beneath. For months, Peter had been tracing the intricate web of power, politics, and capital in Hungary, and the picture emerging was one of tension and transformation. The economy wasn’t just shifting—it was being reshaped by political narratives and the precarious balance between oligarchs and governance.
The concept of “backrolling” had become a focal point in Peter’s investigation. Unlike economic policy reversals or the undoing of reforms, backrolling referred to the upheaval that occurred when political shifts disrupted the delicate balance of power among Hungary’s economic elite. Key oligarchs, whose fortunes were tied to the ruling narrative, often found themselves casualties of the very system they had supported. When a new political narrative emerged, their empires could crumble almost overnight.
Take, for example, Miklós Szalai, a construction magnate who had thrived under the government’s ambitious infrastructure programs. His companies, awarded lucrative state contracts, became symbols of Hungary’s rapid development. But when political winds shifted, Miklós was targeted by investigations into corruption, and his empire unraveled. Contracts were frozen, assets were seized, and Miklós himself became a pariah in the business community. What struck Peter was the rapidity of the fall—an oligarch, once untouchable, rendered powerless by the system that had made him.
This wasn’t an isolated incident. Peter discovered a pattern: when political narratives shifted, so too did the fortunes of those aligned with the old order. Oligarchs whose businesses depended on government patronage were especially vulnerable. Their wealth wasn’t built on innovation or resilience but on proximity to power. When that proximity disappeared, their foundations crumbled.
At the heart of this phenomenon was the rigid structure of Hungary’s economy. Capital was heavily concentrated in a few hands, with little room for smaller players to emerge. This rigidity made the economy brittle, unable to adapt to the rapid changes wrought by political shifts.
Peter met with Judit, the owner of a mid-sized logistics company, to understand the impact on businesses lower down the chain. “When the big players fall, the ripples hit all of us,” Judit explained. “We’re subcontractors for these giants. If they lose a contract or go under, we lose everything too. There’s no buffer, no safety net.”
Judit’s story echoed that of many SMEs struggling to navigate an economy where success depended less on merit and more on connections. The unpredictability created by backrolling deterred investment and stifled growth, leaving businesses like Judit’s perpetually on edge.
Compounding the problem was the role of external influences. Peter’s investigation revealed that Hungary’s economic narrative wasn’t just shaped domestically—it was also influenced by global and European dynamics. The withholding of EU funds due to concerns over judicial independence created financial uncertainty, while the rise of international players in Hungary’s markets introduced new tensions.
One prominent example was the CPI Property Group, a real estate giant with substantial holdings in Hungary. While CPI’s investments spurred development, they also exacerbated inequalities in the property market. CPI’s dominance was bolstered by its ability to navigate both domestic and international political landscapes, a skill that smaller players couldn’t match.
Similarly, Peter noted the influence of foreign media and technology companies, particularly those operating out of Ireland. Platforms like Facebook and Google, with their lax regulatory oversight, became tools for both domestic and international actors to shape Hungary’s political and economic discourse. Political parties, including both the ruling Fidesz and opposition groups like the TISZA party, leveraged these platforms to amplify their narratives, often targeting one another in the process.
Fidesz, in particular, used taxpayer funds to bankroll digital advertising campaigns, ensuring its dominance on social media. The blurred lines between public resources and political strategy created a feedback loop, where the economy and politics became inextricably intertwined.
The cumulative effect of these dynamics was a system that lacked resilience. Political shifts, instead of fostering growth and adaptation, triggered economic upheavals that rippled through every sector. Yet Peter found hope in the stories of individuals working to break this cycle.
One such figure was Ákos, a tech entrepreneur who had built a successful software company despite the challenges of Hungary’s economic landscape. Ákos had turned down offers of government grants, choosing instead to rely on private funding and international partnerships. “I didn’t want to be part of that system,” he told Peter. “It’s tempting, but it comes with strings. And those strings can strangle you.”
Ákos’s approach represented a growing movement among Hungary’s younger entrepreneurs—individuals who saw the flaws in the system and sought to create something new. They were leveraging technology, collaboration, and global networks to build businesses that could withstand the country’s political and economic shifts.
As Peter walked through the streets of Budapest that evening, the lights of the city seemed to reflect a deeper truth. Hungary’s economy was a mosaic, its pieces constantly shifting under the weight of political narratives and external pressures. Yet within the cracks, new patterns were emerging—patterns of resilience, innovation, and hope.
The key, Peter realized, lay in creating a system where politics and business could coexist without entanglement. This would require transparency, accountability, and a willingness to challenge the status quo. It would mean fostering an economy that rewarded merit over connections and encouraged collaboration between the private sector and the state.
Hungary’s mosaic was far from complete, but Peter felt a renewed sense of purpose. The pieces were there; it was just a matter of fitting them together.
Teaser for Next Episode: As Peter explores the final chapter of Hungary’s mosaic, he uncovers the human stories of resilience and innovation that point to a brighter future. Next: The Innovators: Building Hungary’s Tomorrow.
Thank you for the rewarding attention,
Dr. Attila Nuray
