Budapest and national government strike deal to let city collect parking revenues and avoid bankruptcy

During a press briefing after a council meeting, Budapest's mayor announced that the national government will deliver a one-time cash injection and drop all pending lawsuits it had filed against the city. In exchange, the capital will assume responsibility for organizing parking and collecting the associated fees, a function previously handled by the districts. Officials expect the new parking revenue stream to bolster the city’s budget and prevent a financial collapse.

The package also contains provisions to lower a solidarity levy, though the exact reduction will be determined after negotiations with all local governments. Additionally, the city pledged to achieve a specified savings in its operating expenses by 2027, a goal described as difficult but attainable. The mayor framed the arrangement as the start of a longer-term partnership between the state and the capital.