Changes to the Hungarian higher education system have been coming for years, with the ruling Fidesz government looking to "modernize" the country's universities. 

But a major change came this week with parliament voting to transfer state assets worth billions of dollars into foundations that will control many of the nation's public universities and cultural institutions. 

The vote, passed by the governing coalition, has put 11 universities under the control of the foundations – which are in turn controlled by boards of trustees appointed by the government. 

The opposition has labeled the move "legalized robbery" and has raised concerns the system could lead to serious corruption if trustees use their links to the current ruling party to influence the institutions over which they preside.

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Bence Tordai, an opposition MEP with Dialogue for Hungary, told CGTN Europe: "The essence of yesterday's decisions is that the state has privatized a large part of the universities, effectively relinquished control of them and put them in the hands of foundation boards of trustees close to the ruling parties, which are in principle irremovable and cannot be controlled by the next democratically elected government." 

Prime Minister Viktor Orban's government has denied the decision is linked to next year's election or holding on to power. It issued a lengthy response, saying in a statement: "All the assets that these foundations have can only be used for public purposes, for the activities of higher education, and they do not become private property in any form."

A spokesperson for the government also stressed that the foundations are private legal entities, independent of the ruling government.

Hungary has also asked the EU to channel some of the grants for which the country is eligible under the EU pandemic recovery fund, into the "modernization of universities." 

This money would be overseen by the foundations. It's a move that could trigger action from the European Commission as funds can be withheld from any state seen to be damaging its financial interests. 

A dozen members of the EU parliament have written to European Commission President Ursula von der Leyen, urging her to block the funding.

Hungary is no stranger to clashes with the EU, along with close ally Poland. Both have rallied against several decisions and blocked budgets in response to measures around rule of law.

Poland is now waiting for a ruling to be handed down on whether Polish law or EU law has primacy in the country. 

It follows a review request by the Polish prime minister last month after the Court of Justice of the European Union ruled EU law takes precedence over the Polish constitution. 

That decision came on the back of another decision the court made over a dispute regarding changes to the judicial system, something the EU saw as compromising independence. 

The ruling is now due to be handed down in mid-May.