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.
