Fidesz hits Budapest with levy, then blames mayor and Tisza Party for financial collapse

Within less than a year, Mayor Gergely Karácsony and the opposition Tisza Party “have managed to drive the municipality of Budapest bankrupt,” Alexandra Szentkirályi, the head of the ruling Fidesz-Christian Democrat parties’ group in the Budapest assembly, said in a Facebook video on Wednesday. This comes after Karácsony held an extraordinary press conference on Monday, saying that due to the 12-fold solidarity contribution, the operation of the capital is in danger.

Szentkirályi insisted that the city was now “bankrupt”, whereas the municipal coffers had a total HUF 214 billion (EUR 531m) in reserve in 2019 when the ruling parties handed over the municipal finances to Karácsony. Referring to a ruling by the Supreme Court concerning the city’s solidarity contribution, Szentkirályi said that the municipal budget was unlawful, as “an item that should have been budgeted was not included”.

“You are not above the law,” Szentkirályi said, adding that “all other municipalities are able to pay their solidarity tax, while their finances stay stable.”

It is important to note that the so-called solidarity contribution was around HUF 5 billion in 2019 under István Tarlós (Fidesz politician), before Gergely Karácsony became mayor. By now, it has grown to HUF 89 billion, which is a 18-fold increase.