European Commission Takes Action Against Hungary
The European Commission is set to withhold €200 million in EU funds from Hungary as a result of the country’s refusal to pay a fine imposed by the European Court of Justice (ECJ). This action comes after Budapest failed to comply with a ruling related to asylum rights.
The fine, which Hungary has been ordered to pay in a lump sum, stems from long-standing restrictions on asylum rights that the ECJ deemed an “unprecedented and exceptionally serious breach of EU law.”
Procedure for Deducting the Fine
The Commission has initiated an “offsetting procedure” to recover the €200 million by deducting it from Hungary’s share of the EU budget. This process will involve reviewing various financial envelopes expected to be disbursed to Hungary in the near future. Approximately €21 billion in cohesion and recovery funds earmarked for Hungary are currently frozen due to ongoing rule-of-law issues.
“We’re moving to the ‘offsetting’ phase as of today,” a Commission spokesperson said. “In theory, any payments can be looked at, nothing is excluded, but obviously, this will take a bit of time. We need to identify what’s coming up and identify payments that can absorb the fine.”
Additional Fines and Political Tensions
In addition to the €200 million fine, Hungary faces a daily fine of €1 million for each day it continues to ignore the ECJ ruling. Budapest has been given a 45-day deadline to address this fine, which currently amounts to €93 million.
Prime Minister Viktor Orbán has condemned the fine, calling it “outrageous and unacceptable.” He has argued that Hungary should receive €2 billion from the EU for its border defense efforts since 2015. The Commission has rejected this claim.
Orbán’s government has threatened to bus migrants to Belgium “voluntarily” and “free of charge” as a form of retaliation, a move that has been met with strong criticism from Belgian and EU authorities. No such transfers have yet occurred, but the proposal has intensified tensions.
Broader Implications and Diplomatic Efforts
The dispute is part of a long-standing conflict between Brussels and Budapest. Recent concerns have also been raised about Hungary’s decision to extend its National Card scheme to Russian and Belarusian citizens. The European Commission has warned that this extension could facilitate sanctions evasion and pose a risk to the Schengen Area.
Hungary has denied these security risks, stating that the extension is necessary to address labor shortages and simplify the process for attracting foreign workers.
This week, there was a potential thaw in relations when János Bóka, Hungary’s Minister for European Affairs, met with Ylva Johansson, European Commissioner for Home Affairs. The meeting focused on both the ECJ ruling and the National Card scheme, although the Commission has not yet provided details on the outcome.
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