The European Commission has announced plans to deduct Hungary’s 200 million euro fine from its EU funds, following the country’s failure to meet the second payment deadline. This decision, confirmed by European Commission spokesperson Balazs Ujvari, applies the “off-setting” procedure, which allows the reduction of the EU budget allocated to Hungary. The Commission’s action stems from Hungary not fulfilling its obligation as determined in the 2020 Court of Justice of the European Union (CJEU) case Commission v. Hungary, which found Hungary’s migrant policy and asylum reception standards contrary to EU law.
Under Article 260(2) of the Treaty on the Functioning of the European Union (TFEU), the European Commission can bring cases before the CJEU if a member state fails to comply with a previous judgment. In June 2024, the CJEU declared Hungary had not met its obligations, imposing a 100,000 euro daily penalty until compliance and the 200 million euro lump sum, which Hungary has not paid.
Hungary’s Prime Minister, Viktor Orbán, has voiced strong criticism of the EU’s decision on platforms such as X (formerly known as Twitter). Orbán has called the fines a part of a larger political issue within the EU, supporting moves by other nations like the Netherlands to opt out of EU asylum rules and contrasting Hungary’s treatment with Germany’s border control measures. More details can be found in the original article.