Budapest's Mayor Gergely Karácsony has initiated a conflict of interest procedure against members of the Fidesz city council faction who also hold paid positions with the Office of the National Assembly.

During a speech at the City Council meeting, he criticized governmental policies aimed at purposefully driving Budapest into financial distress, stating that such policies should not receive support in the council chamber.

He urged council members to act in alignment with their vows to serve the city’s interests.

The mayor elaborated on Budapest's alarming financial situation, referencing a recent report from the State Audit Office.

This announcement coincided with the city’s request for immediate judicial protection against the seizure of funds by the Hungarian State Treasury.

The city is petitioning the courts to prevent deductions from its business tax revenue until the next installment is received, citing that such actions would render the capital unviable.

The State Audit Office indicated that the Budapest City Council must implement further measures to maintain its solvency by 2025 and fully meet its public service obligations.

Karácsony highlighted previous comprehensive investigations by the audit office which deemed the city's financial situation unsustainable, attributing it to factors beyond the city's control, such as the pandemic and the government's restrictive fiscal measures.

Notably, the mayor mentioned that the city budget this year does not include the total solidarity contribution mandated by the government—89 billion HUF—because it is simply unaffordable.

Although the Supreme Court's ruling requires the city to incorporate a portion of this amount, estimated at 51 billion HUF, into its budget, he emphasized that this does not alter the fundamental issue: payment of this state tax would necessitate drastic cuts to public services, a scenario the city leadership aims to avoid.

In the realm of dialogues, a member of the Fidesz party, Szentkirályi Alexandra, criticized the mayor's administration, asserting that the coalition led by Karácsony has driven Budapest to the brink of bankruptcy and suggesting that the Fidesz party should once again consider stepping in to rescue the city, as occurred in 2010. She cited various financial mismanagement claims attributed to the current city leadership.

Amidst these debates, the City Council also discussed proposed legislation that critics argue would undermine transparency regarding the city’s funding mechanisms, particularly concerning accessing European Union grants.

The mayor and other council members highlighted that such measures could jeopardize Budapest's status within the EU.

As discussions progressed, the focus shifted back to budgetary pressures affecting public transport and social services in Budapest.

With mounting concerns about the ability to fund essential services like metro and tram operations, council members expressed urgent calls for decisive actions to address the financial crisis.

The session highlighted a climate of increasing tension between opposing factions, with rising frustrations about government actions perceived as detrimental to the capital's financial stability.

This procedural initiative reflects broader challenges facing Budapest as it navigates significant fiscal obstacles amidst a complex political landscape.