Karacsony said that the report "said the same thing we have been saying for years: if the government does not change its anti-Budapest policy, the city will become bankrupt."

"Budapest will drag down whoever tries to bankrupt it. This is not a threat, it's an economic fact. If you don't believe me, ask rating agencies," he said.

Karacsony cited the report as saying that "the constantly deteriorating financial situation since 2020 was caused by the coronavirus pandemic, the skyrocketing energy prices and growing inflation as well as growing duties towards the budget."

"The Budapest Municipality's liquidity problems have multiplied to a degree in 2025 that fulfilling payments constituted a continuous challenge. Without relevant measures, the municipality may become insolvent by Q4 2025, which would endanger public services."

Karacsony said that City Hall had initiated talks with the government to prevent that. "We are still waiting for an answer ... if the reaction remains a cold shoulder, we will be forced to show again what it is like when Budapest doesn't function," he said.

"Government extortion can't make us give up on Budapest's future..." Karacsony said.

Budapest official: Capital has HUF 32 bn on its account

The Budapest City Council currently has 32 billion forints (EUR 82.1m) on its account, Ambrus Kiss, the director-general of the mayor’s office, told a press event on Wednesday, adding this meant that though the city’s liquidity was sound, "everything depends on what will happen in connection with the solidarity contribution".

The city has collected approximately 290 billion forints in business tax revenue so far this year, and given that the budget assumes business tax revenues of 303 billion forints, "it appears that this target will be met, so the budget was planned well from this point of view", Kiss said.

He said the fact that Budapest has 32 billion forints on its account did not mean that "everything is fine", but that "currently we are liquid, but everything depends on how we can reach a settlement with the government or -- if it comes to it -- the court on the solidarity contribution".

He said an amendment proposal to the budget would be submitted to the Budapest Assembly if the government guaranteed the funds that ensured the operation of public services.

Source: MTI – Hungary’s national news agency since 1881. While MTI articles are usually factual, some may contain political bias, and readers should be aware that such content does not reflect the position of XpatLoop, which is neutral and independent.

Since the goal of XpatLoop is to keep readers well briefed, right across the spectrum of opinions, MTI items are shared to ensure readers are aware of all narratives within the local media.

XpatLoop believes in empowering readers to form their own views through complete and comprehensive coverage. To facilitate this XpatLoop has a balanced range of news partners, as you can see when you surf around XpatLoop.com

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