Hungary on Tuesday missed the first deadline to pay a €200 million European Court of Justice (ECJ) fine imposed in the case Commission v. Hungary in 2020. The fine was levied by the ECJ over Hungary’s failure to comply with EU asylum regulations.
In response to the missed deadline, the European Commission issued a second payment request to Hungary, setting a new deadline of September 17. If Hungary fails to meet this deadline, the European Commission may initiate an “offsetting procedure” which would involve deducting the fine amount from Hungary’s allocated share of the EU budget. The EU budget includes funds that have been frozen due to concerns over Hungary’s adherence to the rule of law.
Hungarian Prime Minister Viktor Orbán has voiced opposition to the ECJ’s decision since it was rendered, arguing that it prioritizes illegal migrants over the safety and security of European citizens. Orbán also indicated the government’s intent to challenge the ruling, citing the financial burden it would impose on Hungary. The prime minister’s office last month doubled down on the government’s refusal to abide by the ECJ decision, threatening to bus migrants to the Belgian capital as a retaliation for the fine.
Hungary has been criticized for its treatment of asylum seekers, particularly the use of “transit zones” at its borders, which effectively detained migrants and restricted their ability to apply for asylum. Although Hungary particularly closed the transit zones, it continued to implement restrictive measures such as requiring asylum seekers to submit applications at embassies in Kyiv, Ukraine or Belgrade, Serbia before entering the country.
The dispute dates back to December 2022, when the ECJ first made the ruling in the case. In June 2024, the ECJ imposed this fine for Hungary’s continued non-compliance along with a daily fine of €1 million for each day the country fails to comply with the ruling. Additionally, in December 2023, the European Commission allowed the release of €10 billion in cohesion funds for Hungary, which had been frozen due to concerns over rule of law in the country.
