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Hungarian Government Addresses Budapest's Financial Struggles and Legislative Changes

Government increases funding support for small businesses as it navigates Budapest's fiscal crisis and controversial legislation.
The Hungarian government, led by Minister Gergely Gulyás, has indicated a willingness to assist Budapest should the capital's financial situation necessitate it.

Negotiations are set to occur, focusing on the city's finances, with Gulyás and State Secretary Csaba Latorcai appointed to lead the discussions.

In related legislative matters, Gulyás announced a decision by the ruling Fidesz faction to postpone the controversial legislations targeting foreign-funded organizations until the autumn.

This decision follows discussions on the draft, which many critics argue could target independent media and civil organizations.

In an attempt to bolster support for small and medium-sized enterprises, the government has announced an increase in funding by 50 billion forints (approximately 140 million euros), benefitting roughly 1,800 businesses.

Gulyás also addressed issues surrounding allegations of misconduct within Budapest’s juvenile detention centers, where a director has faced scrutiny for allegedly trafficking former residents.

While he confirmed that reviews had taken place, he stressed that any oversight in hiring practices must be examined fully to prevent future occurrences.

On the topic of public demonstrations, Gulyás has stated that while the government does not object to expressions of equality, such as those seen at pride events, they are focused on ensuring that all activities align with existing laws concerning child protection.

In further developments, Gulyás reaffirmed that the government does not plan any specific legislation to replace the postponed law intended to limit foreign funding for organizations, although he acknowledged other potential legislative paths could emerge.

In discussions regarding local governance, Gulyás criticized the current Budapest administration under Mayor Gergely Karácsony, attributing the city’s financial difficulties to management errors.

He emphasized that despite the city’s challenges, significant financial support from the government has been historically extended, calling for transparency in Budapest's fiscal operations.

Furthermore, Gulyás commented on the support mechanisms for the Parajd salt mine residents, promising assistance in light of tourism impacts.

He acknowledged the likelihood of an inability to save the mine but assured locals that help would be available if their livelihoods were threatened.

Amid rising tensions regarding foreign influence, specifically Russian and Ukrainian funds purportedly entering Hungary, Gulyás confirmed that no criminal proceedings were underway related to journalists’ alleged foreign payments.

On the international front, Gulyás noted the geopolitical tensions impacting Hungary, stating that the ongoing war in Ukraine is affecting regional stability and leading to increased foreign infiltrations aimed at Hungarian politics.

He reiterated that the government’s priority remains securing national interests amidst these challenges.

Lastly, Gulyás responded to inquiries about the upcoming elections, labeling suggestions that Prime Minister Viktor Orbán would not be the Fidesz candidate as mere wishful thinking from opposition circles.

The governmental stance remains focused on addressing both domestic challenges and international pressures within the context of the current war in Ukraine.
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