Urban development has gained increasing momentum in governmental development policies of the past few decades throughout the Central and Eastern European region. Analyzing a new instrument of Hungarian spatial policy (Modern Cities Program), the paper shows a new initiative of a Central and Eastern European country in the field of urban development. The analysis shows the role of the program in European and domestic regional development policy, its impact on financing infrastructural developments in Hungarian urban areas, and the structure of the projects of the Modern Cities Program. Due to its sizable budget and philosophy, the Modern Cities Program is clearly unrivaled by development programs of the past century of Hungarian regional development. The program with its philosophical grounding in the still not defunct French étatist, dirigiste tradition typical of the 1960s shows a number of similarities to the latter in terms of its applied tools and methods, such as the system of planning contracts, centralized financing, and decision-making. Conversely, there is no evidence to support the interpretation of the program as a novel urban development regime, as underlined by the absence of widespread social involvement in the conceptualization of development objectives. Economic development is at the forefront of the program, with industrial and economic