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Hungary’s Prime Minister Viktor Orban has ordered the termination of a high-stakes lawsuit filed by the city of Budapest over a disputed “solidarity tax,” igniting fierce accusations of political interference just weeks before a pivotal national election.

The move, issued by decree, has drawn condemnation from the capital’s liberal mayor, who described it as an unprecedented strike at the heart of judicial independence — a charge that reverberates across a country already under scrutiny from Brussels.

Court Silent as Political Storm Brews

The Budapest Municipal Court declined to address the specifics of the case. In an emailed statement, the court said that in ongoing proceedings it is the presiding judge — guided by their judicial oath — who determines what procedural steps to take.

That carefully worded response landed like a pebble in turbulent waters. The dispute itself centers on a so-called “solidarity tax,” a payment Budapest is required to transfer to the central government. The city, led by Mayor Gergely Karacsony, has been battling Orban’s administration over the levy in court.

A Financial Tug-of-War

The standoff has not been without consequence. Credit ratings agency Moody’s cited the dispute when it downgraded Budapest’s credit rating, underscoring how political tension can ripple through financial markets.

Orban, who has governed Hungary since 2010, now faces a formidable reelection challenge in parliamentary elections scheduled for April 12. The timing of the Hungary Orban tax lawsuit drop has intensified scrutiny, with critics arguing it signals a consolidation of power ahead of the vote.

Decree Invokes Emergency Powers

Invoking special emergency powers, Orban declared Tuesday that the pending court case over the solidarity tax covering the years 2023 through 2025 would be “terminated by the court.” He added that the tax must be collected.

The language of the decree left little ambiguity. It did not request dismissal; it mandated it.

Karacsony responded swiftly, accusing the government of stripping away even the appearance of legal neutrality.

“The government no longer even cares about maintaining appearances,” he wrote in a Facebook post. “It has directly attacked the rule of law.”

He argued that the decree was designed to prevent Budapest from continuing its legal fight against what he called an “extremely unjust and unlawful solidarity contribution.”

A government spokesperson did not immediately respond to requests for comment.

Legal Experts Warn of Constitutional Fault Lines

Kristof Andras Kadar, co-chair of the Hungarian Helsinki Committee, a legal advocacy organization, said the decree collides with a foundational democratic principle.

“The separation of powers is at stake here,” Kadar said. “The executive branch — which is itself a party to the lawsuit — is now instructing the court to end the case.”

In democratic systems, courts are meant to serve as referees, not extensions of the executive. Critics argue that by directing the judiciary’s handling of a live case, the government risks blurring that boundary.

Broader EU Tensions Loom

The controversy unfolds against a wider European backdrop. The European Union has frozen billions of euros in funding to Hungary over concerns tied to Orban’s rule-of-law reforms — a decision that has weighed on the country’s economy.

For Budapest, the solidarity tax battle is not merely a budget dispute; it is a symbol of the broader struggle between local and national authority, between institutional independence and centralized control.

As the April election approaches, the Hungary Orban tax lawsuit drop has become more than a procedural decision. It now stands as a flashpoint in Hungary’s ongoing debate over democracy, governance, and the limits of executive power.