Hungary has taken significant steps to restore the rule of law in the two months since Prime Minister Péter Magyar took office, the European Commission said in a report presented on Friday.The new government has launched “intense reform efforts”, with several legislative changes already advanced, according to the report, which describes the progress made as “impressive” given the short time since the change of government.“You have a very radical change compared with last year’s report. Things have moved very, very quickly in the right direction,” a senior EU official told Euronews.A key development was Hungary’s recent decision to join the European Public Prosecutor’s Office, which investigates and prosecutes financial crimes affecting the EU budget across member states.The report also highlights progress in several areas, including anti-corruption measures, asset declarations and the work of the Integrity Authority.Magyar has also dismantled the “Sovereignty Protection Office”, a body established under his predecessor, Viktor Orbán, which could access citizens’ personal data to investigate and sanction alleged foreign agents. The office had been targeted by an EU infringement procedure.“We see some very positive trends […] in the early weeks of the new government’s mandate, a lot has already been done,” EU Justice Commissioner Michael McGrath said during a press conference presenting the report.‘Things can’t change overnight’Despite the reform push, the Commission said significant shortcomings remain in Hungary’s justice system.“Things cannot completely change overnight,” a senior EU official told Euronews, stressing that many recommendations made in previous years’ reports have yet to be addressed.One example is the procedure for appointing the Prosecutor General, which remains a concern for the Commission because it could allow undue political interference in individual cases.The Commission does not rank EU countries’ performance, but publishes dedicated chapters assessing each member state. For Hungary, the remaining concerns include the functioning of the judiciary, corruption risks and unresolved violations of EU law.Civic space also continues to be classified as “obstructed” in the report. The complexity of registration procedures in Hungary remains a challenge for smaller organisations with limited resources.The Rule of Law Report could become increasingly important in the coming years, as the European Commission seeks to strengthen the link between compliance with rule-of-law standards and the allocation of EU funds under the 2028-34 EU budget.Countries that fail to meet these standards could see payments suspended, although Commissioner McGrath stressed that there would be no automatic mechanism triggered solely by the report’s findings.