Hungary is the only country in Central and Eastern Europe, where all governments have been able to fulfil their mandate, and no interim elections have taken place since the regime change in 1989. This stability has been a feature of the Hungarian political system ever since, and makes the country a predictable and reliable partner for investors.

After 1989, Hungary started its reintegration in the world economy. The country opened up to foreign direct investments, and liberalized its trade regime. Privatization began, which was basically finished by the second half of the ‘90s. Hungary joined the OECD in 1996 and NATO in 1999.

During the past 15 years, conservative and social-liberal governments have been alternating each other. At the elections held in 2002 and 2006, the Hungarian Socialist Party (MSZP) and the Alliance of Free Democrats (SZDSZ) formed a coalition government. In April, 2008, however, after a health reform initiated by the Free Democrats was refused at a Referendum by a vast majority, the Coalition collapsed and the Socialists formed a minority government. In March 2009, under increasing critiscism about his economic policies, Ferenc Gyurcsany, the Socialist Party leader and Prime Minister resigned and a caretaker government was formed with Gordon Bajnai as Prime Minister.

At the last parliamentary elections in April 2010, the conservative FIDESZ-Hungarian Civic Alliance (FIDESZ-MPSZ) won with an overwhelming majority.

Fideszs two-thirds mandate is the first for a single party since Hungarys transition to democracy 20 years ago. Fidesz has identified reforming the system of local governments, the electoral system, the media law, as well as easing the process for ethnic Hungarians in neighbouring countries to obtain dual citizenship as the central elements of the new governments program. 
The Hungarian Socialist Party won 59 seats in the general elections, the radical-nationalist Jobbik party won 47 seats and the green-party Politics Can Be Different (LMP) won 16 seats. Both Jobbik and LMP will enter parliament for the first time.

The new government was formed on the 29th of May under the leadership of Viktor Orban.