EU tightens purse strings on Hungary over immigration law breach

The violation relates to obstructing third-country nationals from applying for international protection. In 2020, the Court of Justice of the European Union ruled that Hungary was violating EU law by detaining asylum seekers in transit zones and expelling those awaiting appeals. The ruling also addressed the use of so-called pushbacks – the forcible return of migrants to the country they came from.

Immediately after the ruling, Hungary declared it would dismantle the transit zones. However, the CJEU found that Budapest did not comply with the ruling, and in June imposed a fine of £170 million. Simultaneously, to compel Budapest to change its migration policy, the Court announced that if Hungary does not amend its law in accordance with the verdict, a daily fine of £850,000 could be imposed.

"Regarding the one-time fine of £170 million, since Hungary did not make the payment by 17th September, the Commission – after prompting Budapest to make the payment and informing them of non-payment consequences – is now proceeding with the compensation procedure by the applicable regulations. This means that the fine in question will have to be deducted from upcoming transfers from the EU budget to Hungary," said Commission spokesman Balazs Ujvari in Brussels on Wednesday.

Ujvari informed that Hungary had three months from the date of the verdict (until 13th September 2024) to respond and explain to the Commission how it intends to comply with the ruling; however, the Commission did not receive any response.

"Therefore, on 16th September 2024, the Commission sent a letter urging Hungary to pay financial penalties for the first three months from the Court's judgement on 13th June. From 13th June to 13th September, the fine amounts to £80 million (at £850,000 daily, including the verdict date). The Commission will send letters every two months to seek payment of daily financial penalties as long as the violation continues. Suppose Hungary does not pay the amounts imposed by the CJEU. In that case, the Commission will deduct them from financial allocations for Hungary under various programmes, as it would do with any other member state in a similar situation," he said at a conference in Brussels.

The Hungarian government wanted the Commission to count the funds the country spends on guarding the EU's external border, that is, its border with Serbia, towards the fine. According to Budapest's calculations, the Commission owes it £1.7 billion for the past nearly ten years. However, Balazs Ujvari previously emphasized that the procedure for paying or deducting fines is stipulated by EU regulation, with which Budapest's proposal is not compliant.