Human Rights Watch (HRW) criticized the Hungarian government on Thursday for using emergency powers to shut down court cases challenging a municipal tax, describing the move as a “dangerous precedent” that undermines separation of executive and judicial powers.

HRW stated in a press release that the government’s actions are a “severe blow to the rule of law,” citing its use of emergency decree as an example of “authoritarian overreach.” It described the termination of the court cases as a constitutional violation, with the government acting “as judge in its own dispute.” The statement further criticized the government’s evasion of parliamentary scrutiny.

The group called for the revocation of the decree and reinstatement of “access to judicial review” for municipalities. It further encouraged the EU to take note of the implications for rule of law in Hungary, having previously raised the alarm on potential violations of Article 2 of the Treaty of the European Union.

Government Decree 15/26 (II.3) was passed on February 3 to terminate lawsuits challenging a “solidarity contribution tax” on municipalities. The tax was increased in 2023 to redistribute funds from wealthier municipalities to the national budget. A legal challenge was brought soon after by the city of Budapest amongst other opposition-dominated authorities.

Courts have issued numerous rulings asserting authority to rule on the matter, with the Curia (Hungary’s highest judicial authority) in November 2025 upholding a Budapest Metropolitan Court decision that ruled the Hungarian State Treasury illegally taxed the capital 28.3 billion forints, in addition to 6 billion forints in interest.

Both the Curia and the Budapest Metropolitan Court issued statements concerning the executive decree. The Curia said on February 5 that judges in the lower courts should be able to rule on the ongoing lawsuits, stipulated by Article 26(1) of the Fundamental Law, which states that “[j]udges shall be independent and subordinated only to the law; they shall not be instructed in relation to their judicial activities.”

The Metropolitan Court announced that it would begin “an individual norm control procedure” and possibly a preliminary ruling procedure with the EU under the Convention on the European Charter of Local Self-Government.

Budapest Mayor Gergely Karácsony said that the government had set an alarming precedent: “If a court appears likely to rule against the government, a decree can simply be issued afterwards to declare the government right and dismiss the case.”

The controversy comes ahead of April 12 parliamentary elections, with opposition leader Péter Magyar’s Tisza party leading polls by 10 points over Prime Minister Viktor Orbán’s Fidesz party. Concerns exist about whether the elections will be held in a free and fair manner. The current government has been in power since 2010, and has been widely criticized for using the law to take control of independent institutions and target opposition figures.