Mayor Gergely Karácsony announced the update on Tuesday, noting that the exemption allows for a crucial window of time. Specifically, it gives the city approximately one month following the formation of the new government to negotiate the necessary steps to secure the capital's long-term financial health.

The Mayor suggested that the previous administration’s use of the solidarity contribution system was an attempt to drive the city toward bankruptcy. He maintained, however, that Budapest remained functional throughout the ordeal, holding out until the political landscape shifted.

According to the Mayor’s office, this pause in payments offers a strategic opportunity to reach a formal agreement with the incoming government led by Péter Magyar.

The goal of these discussions is to implement broader reforms, such as the introduction of a dedicated "Budapest Law" designed to create a more stable and predictable financial framework for the city.

Photo: Pixabay.com

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