Mayor Karácsony: Due to government policy, Budapest may become insolvent by the Q4 of 2025

Budapest will drag down those trying to bankrupt it, Gergely Karácsony, the city’s mayor, said on Wednesday, in response to a report published by the State Audit Office (ÁSZ).

“Budapest will become bankrupt”

Karácsony said that the report “said the same thing we have been saying for years: if the government does not change its anti-Budapest policy, the city will become bankrupt.”

“Budapest will drag down whoever tries to bankrupt it. This is not a threat, it’s an economic fact. If you don’t believe me, ask rating agencies,” he said.

Karácsony cited the report as saying that “the constantly deteriorating financial situation since 2020 was caused by the coronavirus pandemic, the skyrocketing energy prices and growing inflation as well as growing duties towards the budget.”

“The Budapest Municipality’s liquidity problems have multiplied to a degree in 2025 that fulfilling payments constituted a continuous challenge. Without relevant measures, the municipality may become insolvent by Q4 2025, which would endanger public services.”

As we wrote earlier, public transport in Budapest was suspended in June.

Silence from the government

Karácsony said that City Hall had initiated talks with the government to prevent that. “We are still waiting for an answer … if the reaction remains a cold shoulder, we will be forced to show again what it is like when Budapest doesn’t function,” he said.

“Government extortion can’t make us give up on Budapest’s future…” Karácsony said.

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