Hungary's government dealt a severe blow to the rule of law by issuing a decree that terminates ongoing court cases challenging a tax on municipalities, Human Rights Watch said today. The move sets a dangerous precedent for executive interference with the courts and the separation of powers.
"Shutting down court cases by decree is not how a democracy functions," said Benjamin Ward, deputy Europe and Central Asia director at Human Rights Watch. "This is the government telling the courts what they can address simply because it does not like the legal challenge or those bringing it."
The government used emergency decree powers on February 3, 2026, to immediately dismiss all lawsuits filed by at least four municipalities, including Budapest, against the central government over aspects of the so-called solidarity contribution tax for 2023-2025. All legal challenges were filed by municipalities led by opposition parties or independents. The new decree overrides all pending court cases and requires payment of the taxes in full, regardless of the unresolved legal questions. At least one judge has postponed hearings.
This latest authoritarian overreach deepens serious concerns under Hungary's Fundamental Law and European Union law, Human Rights Watch said.
This rights-violating move is the latest in a lengthy legal battle between the central government and affected municipalities. Hungary's Supreme Court, in a 2025 ruling, clarified that ordinary courts are competent to review disputes over the solidarity tax. Similarly, courts have ruledthat imposing the tax constitutes an administrative act subject to judicial review.
The new decree directly contradicts these rulings by declaring that the determination and collection of the contribution are merely "technical processes" and not administrative acts, thereby excluding them from court review and ordering an immediate end to ongoing cases.
The Budapest Metropolitan Court on February 5 stated the decree violates the principle of legal certainty, the principle of the rule of law, the right to an effective remedy, and the principle of judicial independence, as well as the prohibition of retroactive legislation. The court said it will initiate an individual constitutional review procedure and request a preliminary ruling by the Court of Justice of the EU, adding that the next hearing in the case will be held as scheduled in March. The Supreme Court in a statement on February 5, said that judges assigned these cases must issue decisions.
By intervening in pending cases, the government has blatantly overridden judicial decisions and positioned itself as judge in its own dispute, Human Rights Watch said. This violates core constitutional principles including the separation of powers and judicial independence.
Under Hungary's Fundamental Law, courts are exclusively empowered to decide disputes over the legality of administrative acts. The Constitutional Court has previously held that the solidarity tax can only be constitutional if imposed following a fair administrative procedure that respects municipal rights, and that ensuring compliance with this requirement falls within judicial competence. The new decree removes the courts' ability to assess whether such safeguards were met.
The government has ruled by decree for nearly six years, using various states of emergency, including mass migration, the Covid-19 pandemic and the war in Ukraine, to justify its actions. The government invoked Hungary's ongoing state of emergency linked to the war in Ukraine to justify this measure. The state of emergency has enabled the government to sidestep parliamentary debate and to rule by decree, without meaningful scrutiny or challenge.
Intervening to terminate lawsuits obliterates the separation of powers and erodes confidence that courts can operate free from political interference, Human Rights Watch said. EU law and the European Convention on Human Rights require effective access to courts and respect for judicial independence.
The move comes amid a broader pattern of democratic backsliding in Hungary and in the run-up to April's national elections. Over the past year alone, the government has adopted constitutional and legislative changes restricting peaceful assembly, including banning LGBT-related events, introduced measures threatening civil society organizations, and continued its war on independent media and journalists. These developments point to a steady hollowing out of institutional checks and balances.
The EU has already raised serious concerns about the rule of law in Hungary, including under the ongoing article 7 rule of law scrutiny procedure and through setting conditions for EU funding. The solidarity tax decree adds to the growing body of evidence that these concerns remain acute and unresolved.
The Hungarian government should revoke the decree, restore access to judicial review for municipalities, and ensure that emergency powers are not misused for political ends. EU institutions and member states should closely scrutinize the move and consider its implications in ongoing rule of law proceedings.
"Right-respecting governments argue their case in court," Ward said. "This one shuts the courts down by decree, a clear sign of how deeply the rule of law has been eroded."
