Hungary Faces Financial Penalties from EU Amid Migrant Dispute

The European Commission is set to deduct 200 million euros from Hungary's future EU payments due to the country's non-compliance with a penalty imposed earlier by the European Court of Justice (ECJ). The deadline for Hungary to remit the payment expired on Tuesday, prompting the Commission to initiate a compensatory procedure. In addition to the initial penalty, Hungary now faces a daily fine of one million euros for each additional day of delay following the ECJ's ruling.

The contentious issue stems from Hungary's violations of EU asylum laws, which the ECJ addressed more than 90 days ago. The Commission had previously urged Hungarian authorities to pay the penalty, but with Hungary remaining unresponsive, the financial implications have become more serious. As it stands, Budapest has 45 days to comply with the ECJ's decision.

In a dramatic response to the ruling, Gergely Gulyas, the minister in charge of the Prime Minister's office and a close ally of Prime Minister Viktor Orbán, threatened to transport refugees and migrants to Brussels, saying: "If Brussels wants the migrants, then it should take them." He characterized the situation resulting from the ECJ's decision as "unacceptable, intolerable, and undignified." Gulyas expressed hopes for a resolution through negotiations with the EU Commission.

Moreover, Hungary is contemplating demanding compensation from the EU for costs accrued due to its heightened border protection measures against irregular migration. This decision comes amid ongoing tensions between Hungary and the EU, which have been exacerbated by Hungary's refusal to adhere to EU standards and regulations.

The ECJ's ruling in June highlighted Hungary's deliberate circumvention of the EU's common asylum policy, a verdict that came after years of the Commission criticizing Budapest for undermining EU values. The European Commission filed the complaint that led to the latest financial penalties, noting Hungary's failure to implement an earlier ECJ ruling from December 2020 regarding its asylum system.

This situation has taken a toll on Hungary's financial relationship with the EU, leading to the freezing of billions in funding, further straining the connection between the two parties. As negotiations continue, the resolution process will be closely watched by both domestic and international observers.

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