The paper discusses the legitimacy and public perception of democracy in Hungary, stressing the significance of welfare issues and its neglect by the political elite after the regime change in 1990. As the transition to democracy had primarily been associated with economic prosperity and social security, a majority of Hungarians find themselves disappointed, facing current high unemployment rates, diminishing social mobility, deepening social disparities and an erosion of social stability. At the same time, the report argues how these tendencies, a general lack of confidence within the Hungarian society towards public and political institutions, as well as a relatively weak participation in political issues have contributed to the rise of extremist parties and allowed to build anti-democratic structures without facing a significant opposition. The latest developments undermine the effectiveness of the political system, as well as the quality of democracy and harm opportunities for economic progress. These processes underline the demand for the implementation of welfare programs considering public expectations, which would improve peopleŽs living conditions and lead to a more equitable Hungarian society.