Budapest Faces Financial Crisis as Government Withdraws Funds
Mayor Karácsony Gergely reports significant withdrawal affecting public services, amid political disputes over fiscal responsibilities.
Budapest is experiencing a financial crisis as Mayor Karácsony Gergely announced that the Hungarian government has withdrawn 10.2 billion forints from the capital's accounts.
This announcement was made on his social media platforms, where he emphasized that the government is adversely affecting the salaries of public service workers, including tram drivers, elderly caregivers, horticulturists, and road maintenance staff.
He warned that "in a matter of weeks, there will be no funds for the operation of BKV," Budapest's public transport provider.
In response to the crisis, the Municipal Council member from Kutyapárt suggested several drastic measures to the mayor, including turning all streets in front of ministries into pedestrian zones with complete vehicle restrictions, dramatically affecting transportation in key areas.
The member also proposed that buses and trams should break down on the next parliamentary day near the Parliament building, and urged for immediate roadworks in front of the Karmelita as a response to reported major pipe bursts.
The financial withdrawal comes amid political accusations, with Szentkirályi Alexandra of the ruling Fidesz party blaming Gergely for mismanagement.
She claimed that a coalition involving Karácsony Gergely and the Tisza Party mishandled 50 billion forints allocated for development at a rail terminal, while simultaneously planning a budget that includes a similarly large and allegedly unlawful deficit.
The situation escalated as Mayor Gergely reported that the government’s actions had rendered the city unable to function adequately.
He held a press conference, stating that the funds were seized around 11 AM, asserting the potential for a miscommunication within the government or a serious lapse in professional conduct.
However, he expressed skepticism over the likelihood of this being a mere accident, suggesting high-level political instructions may have led to this legal action.
Gergely underscored the urgency of the situation, asserting that immediate legal protection had been sought in regard to the funds withdrawn and highlighted that the legal measures were intended to provide rapid relief, which was not respected by the state treasury.
He described the withdrawal as a decision that threatens the operational capacity of the capital.
In contrast, National Economy Minister Márton Nagy defended the government’s actions, stating that Budapest had not legally adhered to its payment obligations for the solidarity contribution, thereby justifying the treasury’s legal enforcement of the withdrawal.
The minister emphasized that laws apply universally, stating, "Nobody is above the laws and regulations; everybody is obliged to pay the solidarity contribution without exception."
As the situation develops, it remains uncertain how these financial tensions will affect the delivery of essential public services in Budapest.
This announcement was made on his social media platforms, where he emphasized that the government is adversely affecting the salaries of public service workers, including tram drivers, elderly caregivers, horticulturists, and road maintenance staff.
He warned that "in a matter of weeks, there will be no funds for the operation of BKV," Budapest's public transport provider.
In response to the crisis, the Municipal Council member from Kutyapárt suggested several drastic measures to the mayor, including turning all streets in front of ministries into pedestrian zones with complete vehicle restrictions, dramatically affecting transportation in key areas.
The member also proposed that buses and trams should break down on the next parliamentary day near the Parliament building, and urged for immediate roadworks in front of the Karmelita as a response to reported major pipe bursts.
The financial withdrawal comes amid political accusations, with Szentkirályi Alexandra of the ruling Fidesz party blaming Gergely for mismanagement.
She claimed that a coalition involving Karácsony Gergely and the Tisza Party mishandled 50 billion forints allocated for development at a rail terminal, while simultaneously planning a budget that includes a similarly large and allegedly unlawful deficit.
The situation escalated as Mayor Gergely reported that the government’s actions had rendered the city unable to function adequately.
He held a press conference, stating that the funds were seized around 11 AM, asserting the potential for a miscommunication within the government or a serious lapse in professional conduct.
However, he expressed skepticism over the likelihood of this being a mere accident, suggesting high-level political instructions may have led to this legal action.
Gergely underscored the urgency of the situation, asserting that immediate legal protection had been sought in regard to the funds withdrawn and highlighted that the legal measures were intended to provide rapid relief, which was not respected by the state treasury.
He described the withdrawal as a decision that threatens the operational capacity of the capital.
In contrast, National Economy Minister Márton Nagy defended the government’s actions, stating that Budapest had not legally adhered to its payment obligations for the solidarity contribution, thereby justifying the treasury’s legal enforcement of the withdrawal.
The minister emphasized that laws apply universally, stating, "Nobody is above the laws and regulations; everybody is obliged to pay the solidarity contribution without exception."
As the situation develops, it remains uncertain how these financial tensions will affect the delivery of essential public services in Budapest.
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