Hungary’s Viktor Orban pulled almost every lever available to extend his 16 years in power. In the end, neither an in-person endorsement from U.S. Vice President JD Vance nor a captive media machine was enough to save the man who admits playing “mouse” to Vladimir Putin’s “lion.”

While more of a tilt back westward for the country rather than a radical new path, this election result is a warning for the European Union’s MAGA fan club. Ideally, it will help the bloc become more credible and competitive.

Orban’s defeat shows the rise of “illiberal democracy” is not inevitable. The crowded celebrations along the Danube, and the record voter turnout, speak to a disconnection between the Hungary he claimed to defend and people’s lived experience.

The beaten party had lauded public-sector wage hikes and shiny factories like the one built by a Chinese battery maker. Voters, however, felt ground down by weak growth, post-pandemic inflation and low salaries. The crony capitalism of Orban’s network of associates — and the spending of taxpayer and EU funds on pet projects in his hometown — painted a picture of corruption and caused Brussels to withhold billions of euros in support.

The perky response of Hungary’s currency and equity markets, at a time when war in the Gulf is depressing asset prices everywhere, shows Orbanism clearly wasn’t working for business. It helps that incoming Prime Minister Peter Magyar’s super-majority will give him the power to change things.

Brussels offers the lowest-hanging fruit. Hungarians lost trust in Orban and want a different approach on EU relations rather than the tired attacks on the populists’ favorite scapegoat. If Magyar lifts Hungary’s block on a €90 billion ($105 billion) loan to Ukraine and on Russian sanctions, it will be a step toward unlocking the €17 billion in European funds earmarked for the country. The noises are already positive.

It would, of course, be foolish to expect miracles from Magyar, who is more political insider than radical progressive. He’s taken a carefully constructive position on Ukraine, supporting its right to self-defense while ruling out sending Hungarian weapons or troops.

His most pressing challenge is a budget deficit drifting above 5%. Tough decisions will be needed “within weeks,” Bloomberg Economics says. And despite Magyar’s ambition to dismantle Orbanism “brick by brick,” the ousted leader’s influence won’t disappear overnight — and neither will Putin’s. Hungary is highly dependent on Russia for energy, and Chatham House’s Gregoire Roos says it would take years of investment in alternatives to change that.

And yet, losing a perennial troublemaker and veto wielder from the EU top table will help it pursue a more credible geopolitical path between U.S. President Donald Trump’s Moscow-friendly White House and China’s industrial juggernaut. Brussels diplomats will expect more support at the margins for Kyiv, after regularly grumbling about Orban as Putin’s “Trojan horse.”

There’s hope for a spring-cleaning in Budapest for the rule of law, too. Magyar is promising to clean house by tackling corruption and restoring the judiciary’s independence, including joining the European Public Prosecutor’s Office. The European Commission should give him a leg up when evaluating rule-of-law “milestones” in return for access to Brussels’ cash.

And without giving into wishful thinking or “domino theory” about MAGA’s fellow travelers in the Old Continent, Orban’s fall will further energize politicians taking the fight to Trump’s network of friends and imitators. The U.S. president is becoming ever more unpopular because of his arrogant bullying of Europe as well as his reckless and economically damaging war of choice in the Gulf. Handing the keys of power to wannabe authoritarians is starting to look deeply unwise in light of Washington’s military and trade misadventures.

Defenders of the liberal democratic faith must now maintain momentum elsewhere. Bulgaria is headed into its eighth parliamentary election in five years. France is bracing for Emmanuel Macron’s last full year as president before elections that might yet bring the far-right to power.

Hungary is relatively small in terms of population and gross domestic product, but its geopolitical importance resonates 70 years on from the 1956 uprising that was crushed by the Soviet Union’s tanks. While it’s too early to declare this a definitive turning point, it is an opportunity Europe simply cannot waste.

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This column reflects the personal views of the author and does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Lionel Laurent is a Bloomberg Opinion columnist writing about the future of money and the future of Europe. Previously, he was a reporter for Reuters and Forbes.

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