The Horn government was the third government in Hungary after the change of regime, which was formed from a coalition of two parties, the MSZP and the SZDSZ. The coalition had a two-thirds majority in Parliament, but voluntarily agreed to amend the two-thirds laws only if there was a consensus with the opposition. The government took the oath of office on July 15, 1994. After their defeat of the 1998 elections, Prime Minister Gyula Horn's term expired on 6 July 1998, and the other cabinet members' 8 July 1998.

Parliamentary elections were held in Hungary on 8 May 1994, with a second round of voting in 174 of the 176 single member constituencies on 29 May. They resulted in the return to power of the Hungarian Socialist Party, the former Communist party, under the leadership of Gyula Horn, who became Prime Minister. The Socialists achieved a remarkable revival, winning an overall majority of 209 seats out of 386, up from 33 in 1990.