The Kuria, Hungary's supreme court, has ruled that a referendum may be held in Budapest on hosting the Olympics, overturning a decision by the Budapest Election Committee, it was reported on November 14.

The Fidesz majority in the committee had previously blocked the referendum question, claiming that the International Olympic Committee's (IOC's) rules did not explicitly allow cities to submit bids, but the Kuria found this interpretation overly restrictive.

VSquare previously reported that informal talks between the government and the city about Budapest potentially hosting the 2036 Olympics are already in progress, though no official confirmation has been given. Citing a source at city hall, the outlet noted that the city government views the infrastructure development required for hosting the games as beneficial to Budapest's interests.

Budapest Mayor Gergely Karacsony met with IOC President Thomas Bach during the games in Paris and signalled openness to hosting the games if it aligns with sustainable, green city planning, and infrastructure upgrades.

Opposition parties have accused Karacsony of reneging on his promise to oppose the games and argued that the government used the Olympic bid to blackmail the recently re-elected city leader. They claim that crucial city developments have been made conditional on his support, following his razor-thin victory in the June local government elections.

The opposition liberal Momentum party is pressing for a separate referendum that would require any Olympic bid to first be subject to a municipal referendum. After Momentum's referendum question was blocked by the National Election Committee, the party vowed to appeal, arguing that the city should not undertake such an ambitious project.

The party's rise to national prominence began in 2017 with a high-profile campaign against Budapest's 2024 Olympic bid. Momentum’s referendum campaign succeeded in gathering over 266,000 signatures, far more than the required number to force a referendum. This strong public response pressured the government to withdraw the bid in early 2017.

On Wednesday, Ninth District Mayor Krisztina Baranyi also weighed in the debate and alleged that the government's recent revival of the Students City housing project was primarily motivated by Olympic aspirations, not by efforts to address the housing crisis in Budapest as claimed.

A few weeks ago, the caucus leader of Fidesz’s Budapest faction, Alexandra Szentkiralyi, who withdrew from the mayoral race two days before the vote, announced that the government was committed to building Students City, a new city centre in the southern rust zone of Budapest’s Ninth District to provide accommodation for 8,000–10,000 students.

Originally, the government planned to establish a campus built by China’s Fudan University at the site. The project faced intense public opposition and protests, as it was seen as sidelining the Students City concept.

Fidesz’s sudden shift has raised eyebrows as it had argued vehemently for bringing the Chinese university there, even at the cost of abandoning the dormitory project, and Karacsony has been trying to persuade the cabinet to build the complex of dormitory places for three years.

Prime Minister Viktor Orban has frequently emphasised the importance of hosting the Olympics Games in boosting Hungary's global profile and solidifying its image as a strong, independent player in international sports and politics. The country has a long and successful history in the Summer Olympics and ranks highly in per capita terms in the all-time medal count for countries that have not hosted. It is ranked fifth in terms of gold medals per capita.

Public opinion on hosting the games remains divided along partisan lines, with Fidesz supporters generally in favour, while opposition supporters largely reject it. Polls indicate that a majority of Budapest residents oppose the idea, primarily due to the financial burdens.