The rising energy and utility prices in Hungary, including Budapest, have created significant challenges for local governments. With the responsibility of managing the public transport system, the city of Budapest faces the task of ensuring its operability during the ongoing energy crisis. Mayor Gergely Karácsony addressed the issue in an interview, highlighting the difficulties faced by the capital city. Despite having a solid financial background following opposition victories in 2019, the energy crisis has put Budapest's stability in the past.
Currently, neither the Budapest Transport Company (BKV) nor the company responsible for street lighting has an electricity purchase contract. Mayor Karácsony expressed confidence in the city's team of professionals, stating that they are actively seeking a solution to procure electricity at a lower cost. However, he acknowledged that there may come a point when Budapest will struggle to pay its bills. Nevertheless, he assured that public transportation and street lighting would not be shut down under any circumstances.
Karácsony dismissed allegations that the government intends to take control of Budapest's public transport system, citing its lack of profitability as a deterrent for administration. He recently mentioned the possibility of accumulating loans or unpaid bills by the end of December, partly due to the government's significant increase in the solidarity tax imposed on Budapest. The city is required to contribute more than HUF 55 billion (EUR 137 million) to the central budget. However, he added that the state budget was in an even more precarious situation than Budapest's.
In a sarcastic remark, Karácsony stated, "We will survive even if we die." He acknowledged that the future holds challenging times for Budapest and emphasized that uncertainty prevails for city leaders across Europe. Other Hungarian mayors, regardless of their political affiliation, face similar difficulties throughout the country. The government has remained silent on potential compensation to assist local governments in operating essential institutions such as nurseries, kindergartens, and social facilities.
As the financial strain persists, some villages in Baranya county, located in southwestern Hungary, have resorted to cost-saving measures by switching off street lights between 10 PM and 6 AM. The overall situation reflects the broader struggles faced by local governments in Hungary, with a lack of support from the central government exacerbating the challenges posed by the energy crisis.
In conclusion, Budapest's public transport system is grappling with the absence of electricity purchase contracts, jeopardizing its operability during the ongoing energy crisis. Mayor Karácsony acknowledges the financial strain faced by the city, with the potential for unpaid bills or accumulating loans. However, he remains committed to keeping public transportation and street lighting operational. The challenges experienced by Budapest are mirrored in other Hungarian municipalities, irrespective of their political affiliations, as local governments strive to manage essential services amidst rising energy costs.
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