Budapest on the Brink: Financial Crisis Looms as Government Offers Aid,EU Funding Stalled
world-today-news.com – june 25, 2025
Budapest is facing a severe financial crisis, prompting the Hungarian government to offer financial assistance [[1]].This comes as city officials warn of a near-bankruptcy situation. mayor Gergely Vitézy and other officials have proactively submitted a five-point crisis plan to the Budapest General Assembly, hoping for a resolution through government negotiations by August, but preparing for emergency scenarios [[3]].
A key concern outlined in the crisis plan is the potential disruption of Budapest’s public transport system. Officials argue that maintaining public transport is a matter of national importance, particularly with the upcoming national celebrations on August 20th. They warn that government funding cuts could jeopardize the city’s ability to provide adequate service during this event. The plan includes measures to highlight the impact of potential service cuts should negotiations fail.
complicating matters further, the EU Commission is withholding approximately €13 billion in funding for Hungary [[2]], demanding reforms before releasing the funds. This adds another layer of financial pressure on both the national government and the capital city.While the Curia, hungary’s supreme court, recently ruled Budapest’s 2025 budget as legally sound after a challenge from the central government [[3]], the underlying financial issues remain critical. the situation is rapidly evolving, and the coming weeks will be crucial in determining Budapest’s financial future.
Stay tuned to world-today-news.com for continuing coverage of this developing story.
