Viktor Orban Photo: Martyn Wheatley / Keystone Press Agency / Global Look Press
The European Commission announced on Wednesday that Hungary will lose 200 million euros in EU funds due to the government’s failure to pay a fine imposed by the European Court of Justice (ECJ). The penalty was issued for Hungary’s non-compliance with EU legislation on international protection for migrants, according to reports from dpa and EFE.
Why is Hungary losing the funds?
The European Commission confirmed that Hungary had until September 17, 2023, to pay the fine but failed to do so. As a result, the EU will deduct 200 million euros from future payments allocated to Hungary from the EU budget. “We will now start deducting the 200 million euros from Hungary’s next payments,” said a Commission spokesperson.
The sanctions stem from a June 13, 2023, ruling by the ECJ, which found that Hungary had failed to comply with an earlier judgment from December 2020. That ruling condemned Budapest for not aligning its asylum procedures with EU law, particularly regarding international protection and the return of illegal migrants to third countries. Despite this, Hungary continued to restrict asylum access.
Additional fines and frozen EU funds
In addition to the 200 million euro penalty, the ECJ has imposed a one million euro daily fine for each day Hungary delays payment. As of now, this additional fine totals 93 million euros. The European Commission is demanding immediate payment, warning that Hungary risks further financial penalties if it does not comply.
Around two-thirds of Hungary’s EU funds have already been frozen due to accusations of rule-of-law violations, further straining the country’s access to critical financing.
Hungary’s response and Orbán’s controversial policies
Hungarian Prime Minister Viktor Orbán, known for his staunch anti-migration stance, implemented strict measures in response to the 2015 European migrant crisis. These measures include legislative changes that severely limit access to asylum in Hungary, as well as the construction of border fences to prevent the influx of migrants.
In a pointed response to the European Commission’s demand for payment, the Hungarian government sarcastically offered to “provide free transportation for migrants who entered Hungary to Brussels” and even prepared buses for this purpose.
This latest development highlights the ongoing clash between Hungary and EU institutions, where the enforcement of rule-of-law standards and adherence to European norms remain pivotal for the country’s future access to EU funding.
