Budapest receives judicial protection, avoids bankruptcy for now

The Budapest Metropolitan Court has granted immediate judicial protection to Budapest against the State Treasury's collection orders for solidarity contributions, prohibiting deductions until the litigation concludes. The court ordered the State Treasury to repay HUF 10.2 billion collected from Budapest's account, citing the city's unique responsibilities and liquidity issues. Mayor Gergely Karácsony emphasized the financial stakes involved, with HUF 50 billion at risk, and highlighted the city's challenges in funding public services. The government has expressed willingness to negotiate and assist to avoid municipal insolvency.