Budapest may sue government over funding disputes

Budapest Mayor Gergely Karácsony has warned that the capital may sue the government if an agreement regarding the solidarity contribution is not reached. He stated that there is no contingency plan if negotiations fail by early October, when the city's coffers may be depleted.

Karácsony noted that Budapest has already faced a loss of approximately 50 billion forints this year because no norms have been received due to an ongoing legal dispute regarding the solidarity contribution established under the previous administration. He argued that the current system is fundamentally unlawful and needs to be phased out in favor of task-based financing that reflects actual operating costs.

The Mayor emphasized that state norms currently cover only about 40 percent of Budapest's expenditures, with funding for public transport being particularly insufficient. He described the 2027 budget as a critical test of the government's political commitment to municipalities.