Hungary has been at loggerheads with Brussels for a long time. A dispute over the country's asylum policy could now cost Budapest dearly.
Because Hungary failed to pay a 200 million euro fine, the European Commission wants to deduct the money from future EU payments to Budapest. The punishment was imposed in June by the European Court of Justice (ECJ) because of violations of EU asylum law by the government in Budapest.
The 15-day deadline for Hungary to pay the 200 million expired on Tuesday, a Commission spokesman said. Therefore, a so-called compensation procedure will be initiated. “We will now deduct the 200 million euros from upcoming payments to Hungary from the EU budget.”
In the summer, the ECJ found an exceptionally serious violation of EU law by the government of conservative Prime Minister Viktor Orban. The ECJ had already declared essential parts of the Hungarian asylum system to be unlawful in previous rulings. The European Commission has also been accusing Hungary of disregarding EU standards and fundamental values for years and has therefore frozen billions in funding for the country.
In addition, according to a decision by the ECJ, Hungary has to pay a daily fine of one million euros for every day of delay. The penalty was imposed on Budapest more than 90 days ago. A spokesman for the EU Commission said the Commission had asked Hungary to pay the fine. The Hungarian authorities now have 45 days to do this.
After the ECJ ruling, Budapest threatened to bring refugees and migrants to Brussels. “If Brussels wants the migrants, then it should get them,” said Hungarian Chancellery Minister Gergely Gulyas, a close aide to Orban.
Green MEP Daniel Freund immediately welcomed the Commission's decision. “The Commission must remain tough,” he said. EU money will only be allowed to flow to Hungary in full again when EU law is enforced.
Gulyas described the situation created by this ruling as “unacceptable, intolerable and undignified.” Hungary hopes to be able to resolve the situation through negotiations with the EU Commission. His country is also considering using litigation to force the EU to share in the costs of Hungary's extensive protection of its borders against irregular migrants.
In the summer of 2015, Hungary erected barbed wire fences on its borders with Serbia and Croatia amid the refugee crisis. As a result, only a few irregular migrants entered the country via the Balkan route.
