A turning point in the battle between the capital and the state: Budapest gains a new chance
A Budapest city council has received a favorable court ruling, which gives it the opportunity to be free from the billions of forints in debt. The court overturned the initial ruling, allowing a proper investigation into the case. Gergely Karácsony urges the government and the city to reach an agreement to resolve the financial problems, but the negotiations are not progressing as expected.
In a case of primary importance for the capital, a favorable court decision arrived on Thursday: if the court approves the city’s request, it will no longer have to pay billions to debt collectors. Although no final decision has been made, the second-instance court has overturned the previous ruling, which favored the city’s lawsuit, and substantive proceedings are now underway. The key legal protection that can be obtained in the dispute is that if the State Treasury immediately collects all unpaid solidarity contributions from the city, it would become insolvent. It is therefore not surprising that Gergely Karácsony is urging the government and the city to reach an agreement to resolve the city’s financial situation. However, there are indications that the negotiations are not proceeding as the City Hall had hoped.
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