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Hungary Unveils €10 Billion Railway Development Plan by 2035

Hungary Launches €10bn Rail Investment with New Tram-Trains and Metro Expansion
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Hungary announced the Gábor Baross Railway Development Plan on July 22, 2026, with a total budget of HF3 550bn (€9.76bn, approximately €10 billion) aimed for completion by 2035. This initiative follows a political agreement signed on May 29, 2026, between Hungary and EU President Ursula von der Leyen enabling the release of European Union funds, contingent on governance and reform commitments due by August 31. The investment represents one of the largest rail projects in Hungarian history.

Plan components: tram-train expansions, battery trains, metro extension

The plan encompasses expansion and renovation of both main line and urban rail infrastructure. Notable projects include the extension of Budapest metro Line

M3 by two stations north from Újpest-központ to Rákospalota-Újpest by 2030. It introduces tram-train schemes such as extending Debrecen’s tram Route 1 along existing main line tracks and establishing a tram-train line linking Kazincbarcika, Miskolc, and Tiszaújváros. Additional battery electric multiple unit (BEMU) deployment is planned on regional lines to promote sustainability in traction technologies.

Rolling stock renewal for inter-city and suburban services

The aging MÁV Személyszállítási Zrt fleet, with an average age of 43 years, will be partially replaced with 35 new double-deck electric multiple units (EMUs) for inter-city services on Budapest – Székesfehérvár and Budapest – Pécs lines. A further 42 EMUs will be acquired to

renew the H5, H6, and H7 suburban lines servicing Budapest. A HF95bn tranche is dedicated to the purchase of battery electric multiple units and the related charging infrastructure for lines including Debrecen – Füzesabony, Sárbogárd – Szekszárd – Baja, and Hatvan – Salgótarján – Somoskőújfalu.

Infrastructure modernisation and metro upgrades

Significant infrastructure projects include the reconstruction of Szolnok station and station upgrades around Lake Balaton. The Budapest – Lajosmizse – Kecskemét suburban rail corridor will be rebuilt and electrified to allow through services. The Budapest – Veresegyház – Vác line will be renewed, and Rákospalota-Újpest station rebuilt with new overbridges. The Budapest Southern Circle railway

will complete its third phase of capacity additions, including a flyover at Ferencváros yards and a new Népliget passenger station with an interchange to metro Line M3. The Déli pályaudvar terminus will be modernised, and the tunnel to Kelenföld rebuilt to accommodate double-deck trains. The Debrecen – Nyíregyháza main line upgrade will support 160 km/h operation and add two stations in Debrecen by 2030. The delayed Budapest – Belgrade line signalling system is under certification, aiming for revenue service by September 2026 pending safety approval.

Governance, digitalisation, and passenger experience improvements

Early programme priorities include establishing a national transport authority for rail and coach services, launching

a broad digitalisation initiative, upgrading electrical substations nationwide, and modernising passenger information systems. These efforts aim to increase reliability and service quality across the network.

Travel connectivity and service impacts

The investment will increase rail capacity and connectivity through new rolling stock, infrastructure enhancements, and expanded metro and tram-train services. The Line M3 extension will improve access in northern Budapest suburbs, while suburban rail upgrades will enable continuous journeys on previously segmented corridors. New stations, such as the planned interchange at the Budapest – Miskolc main line crossing with Hungária körút, will facilitate tram and train integration. The tram-train expansions in Debrecen and Miskolc regions

will enhance urban and regional transit linkages. Station modernisations around Lake Balaton will support tourism access.

Funding and timeline status

The government has approved the financing structure, with total investment of approximately €10 billion targeting 2035 completion. Funding depends on fulfilling reform conditions set by the European Union by August 31, 2026. Key milestones include the metro Line M3 extension by 2030 and upgrading suburban lines and mainline corridors for new rolling stock service integration. The project represents a government-mandated and fully financed plan to transform Hungary’s rail infrastructure.