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Home News Railway News Hungary unveils €9.76bn railway investment plan including tram-trains and metro extensions

Hungary unveils €9.76bn railway investment plan including tram-trains and metro extensions

Hungary launches €10 billion railway development plan
Image: Moving train track by Unknown creator via rawpixel, cc0

Hungary announced the Gábor Baross Railway Development Plan on July 22, 2026, allocating HF3 550bn (€9.76bn) to rail infrastructure and rolling stock upgrades by 2035. The announcement occurred at the rundown Rákospalota-Újpest main line station in Budapest, slated to become the terminus of an extended metro Line M3.

Political backing and EU funding agreement

The programme follows a political agreement signed on May 29, 2026, between Prime Minister Péter Magyar and European Union President Ursula von der Leyen, unlocking EU investment conditioned on governance reforms due by August 31, 2026. This deal enables Hungary to access funding streams for projects including urban and mainline railway developments.

Funding has been formally approved and mobilised by the Hungarian government. Delivery depends on the release of European funds and meeting reform requirements. The plan represents one of the largest rail investment schemes in Hungary in decades.

Governance and digitalisation initiatives

Minister of Transport & Investment Dávid Vitézy announced that the plan includes establishing a national transport authority to oversee rail and coach operations across Hungary. A digitalisation programme for the railway network will be launched to modernise electrical substations and passenger information systems nationwide.

These early priorities target improved infrastructure reliability and enhanced passenger services as foundational components of the development plan.

New rolling stock and battery-electric trains

Procurement

will replace aging rolling stock of MÁV Személyszállítási Zrt, whose average fleet age stands at 43 years. The plan includes acquiring 35 double-deck electric multiple units (EMUs) for inter-city routes and 42 EMUs for the Budapest H5, H6, and H7 suburban rail lines.

An additional HF95bn (€260m approx.) is earmarked for battery-electric multiple units (BEMUs) and the necessary charging infrastructure. BEMUs will serve regional routes including Debrecen – Füzesabony, Sárbogárd – Szekszárd – Baja, and Hatvan – Salgótarján – Somoskőújfalu.

Infrastructure modernization and urban rail expansions

Key infrastructure upgrades will address reliability problems on the national rail network. Major station reconstructions are planned at Szolnok and

around the Lake Balaton region. Additionally, the Budapest metro Line M3 will be extended by two stations, from Újpest-központ to Rákospalota-Újpest, with completion targeted by 2030.

Suburban rail lines H5 (21 km), H6 (40 km), and H7 (6.7 km) are set for renewal and electrification. Other suburban routes undergoing modernization include the Budapest – Lajosmizse – Kecskemét and Budapest – Veresegyház – Vác lines, facilitating through operation without transfers.

Expanded capacity and new stations

The third phase of capacity increases for Budapest’s Southern Circle railway will be completed, featuring a railway flyover over the Ferencváros yards and a new passenger station at Népliget with interchange

to metro Line M3. The Déli pályaudvar main line terminus will be modernized, and the tunnel to Kelenföld rebuilt to support double-deck trains.

A new station is planned on the Budapest–Miskolc main line at Hungária körút to provide interchange with tram route 1. The Debrecen–Nyíregyháza main line will be upgraded to allow 160 km/h operations, including two new stations within Debrecen.

Tram-train development and suburban rail services expansion

The development plan supports tram-train schemes extending Debrecen’s tram Route 1 onto main line rails and introducing a tram-train link connecting Kazincbarcika to Tiszaújváros via Miskolc. Dedicated suburban rail services for Győr and Eger are also planned.

These projects

aim at integrating urban and regional transport networks with modernised two-way rail operations on key corridors.

Budapest–Belgrade signalling system and certification

Modernisation of the Budapest–Belgrade main line, including the new signalling system supplied by China Railway Signal & Communication for the Hungarian section, is pending completion of safety certification by TÜV. Full revenue service deployment is anticipated as early as September 2026, contingent on successful certification.