Hungarian Prime Minister Viktor Orbán announced that the Hungarian state is taking over €2.1bn in municipal debt from nearly 2,000 local governments. He said it is time for the government to step in and help struggling municipalities.
Orbán did not, however, mention what the government intends to do with the assumed debt. The main goal, he said, is to “rescue municipalities from a debt trap and restore their independence.” Orbán said this is one of the government’s top priorities, even if it is not one of the biggest problems facing the country right now.
