The Hungarian Parliament has adopted a law that requires the Budapest city hall to contract loans, putting Mayor Gergely Karacsony at risk of imprisonment.

The Hungarian Parliament voted on a law that could force the Budapest city hall, led by the green mayor Gergely Karacsony, to contract loans under unclear conditions, in the context of an acute financial crisis. The law was quickly adopted, with 136 votes in favor and 34 against, and allows the city hall to request a loan from the Hungarian Development Bank in case of delays in salary payments. Additionally, the mayor is required to present financial documents and implement reforms within six months, otherwise he risks a penalty of up to two years in prison.

Karacsony accuses the government led by Viktor Orban of harassing the capital and imposing excessive taxes, which severely affect the municipal budget. The city hall has challenged in court the solidarity tax, considered unconstitutional, but the government insists on the necessity of redistributing funds. This tense situation reflects the conflict between local administration and the central government.