Brussels is awaiting Hungary’s payment of a €200 million fine and the lifting of its long-standing restrictions on the right to asylum, setting the stage for a potential confrontation between Hungary and the European Union.
Hungary recently missed the initial deadline to pay the fine, which was imposed by the European Court of Justice (ECJ). As a result, the European Commission has issued a second payment request, with a new deadline of 17 September. If Hungary fails to meet this deadline, the Commission, which is obligated to ensure that member states comply with ECJ rulings, will initiate the ‘offsetting procedure.’ This process involves deducting the €200 million from Hungary’s allocated share of the EU budget, portions of which are already frozen due to concerns over the country’s adherence to the rule of law. ‘There is no wiggle room here. We have to follow the applicable procedures,’ a Commission spokesperson said on Monday, underscoring the gravity of the situation.
The conflict stems from a June ruling by the ECJ, which found that Hungary had committed an ‘unprecedented and exceptionally serious breach of EU law’ due to its restrictive asylum policies. The legal dispute dates back to December 2020, when the ECJ first ruled that Hungary, under Prime Minister Viktor Orbán, had severely limited access to asylum procedures, effectively making it ‘virtually impossible’ for individuals seeking international protection to file applications. The Hungarian authorities were criticised for unlawfully detaining asylum seekers in ‘transit zones’ under conditions resembling detention and for violating their right to appeal. These controversial ‘transit zones’ have since been closed.
In response to Hungary’s failure to comply with the 2020 verdict, the European Commission launched new legal action, culminating in the June ruling. The judges concluded that Hungary was ‘disregarding the principle of sincere cooperation’ and ‘deliberately evading’ the application of the EU’s asylum legislation, with significant repercussions for neighbouring member states. The ECJ imposed the €200 million fine as a result, which Prime Minister Orbán condemned as ‘outrageous and unacceptable,’ accusing Brussels of prioritising illegal migrants over European citizens.
The Commission’s first payment request was issued on 16 July, giving Hungary 45 days to comply. However, as the deadline passed last Friday without payment, the Commission has now sent a second request, extending the deadline by an additional 15 days. If Hungary fails to pay by 17 September, the Commission will trigger the ‘offsetting procedure,’ which involves identifying future payments due to Hungary from the EU budget and deducting the fine from those funds.
In addition to the lump sum fine, Hungary faces a separate penalty—a daily fine of €1 million—imposed by the ECJ, which accumulates each day the government continues to ignore the June ruling. Budapest has until 31 September to demonstrate what steps, if any, it has taken to lift its asylum restrictions. The European Commission will decide on further action based on Hungary’s response.
The prospect of Hungary complying appears increasingly unlikely, as the government shows no sign of relenting. In fact, the issue may escalate into a broader political confrontation. Last month, Gergely Gulyás, the minister for the prime minister’s office, reiterated Hungary’s refusal to adhere to the ECJ ruling and threatened to bus migrants to Brussels as retaliation for the fine.
‘If Brussels wants migrants, they will get them,’ Gulyás warned. ‘We will give everyone a one-way ticket if the EU makes it impossible to stop migration at the external border.’
As the situation develops, the standoff between Hungary and Brussels is likely to intensify, with significant implications for the EU’s internal cohesion and its handling of asylum policies.
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