Hungary refuses to pay fines for breaking EU asylum rules. Brussels is taking the money anyway.

BRUSSELS -- The European Union on Wednesday began the process of clawing back hundreds of millions of euros in funds meant to go Hungary after its ant-migrant government refused to pay a huge fine for breaking the bloc’s asylum rules.

In June, the EU’s top court ordered Hungary to pay 200 million euros ($223 million) for persistently depriving migrants of their right to apply for asylum. The court imposed an additional fine of 1 million euros for every day it failed to comply.

The European Court of Justice described Hungary’s actions as “an unprecedented and extremely serious infringement of EU law.” Hungarian Prime Minister Viktor Orbán slammed its ruling as “outrageous and unacceptable.”

The EU’s executive branch, the European Commission, said that given Hungary’s failure to pay or provide information about its intentions, Brussels is “moving to what we call the off-setting procedure” by taking the money from common funds that would otherwise go to Budapest.

“So, what we are going to do now is to deduct the 200 million euro from upcoming payments from the EU budget towards Hungary,” commission spokesman Balazs Ujvari said. He said it would take time to identify which parts of Hungary’s funding could be deducted.

Ujvari said the commission has also sent a first payment request on the daily fines amounting to 93 million euros ($103 million) so far. “Counting from receipt, the Hungarian authorities will have 45 days to make that payment,” he said.

Hungary’s staunchly nationalist government has taken a hard line on people entering the country since well over 1 million people arrived in Europe in 2015, most of them fleeing conflict in Syria.

The case against it concerned changes Hungary made to its asylum system in the wake of that crisis, when some 400,000 people passed through Hungary on their way to Western Europe.

The government in Budapest ordered fences with razor wire to be erected on its southern borders with Serbia and Croatia and a pair of transit zones for holding asylum seekers to be set up on its border with Serbia. Those transit zones have since closed.

In 2020, the ECJ found that Hungary had restricted access to international protection, unlawfully detained asylum applicants, and failed to observe their right to stay while their applications were processed.

The transit zones were closed in 2020, shortly after that ruling.

But the commission, which is responsible for monitoring the 27 EU member states’ compliance with their shared laws, took the view that Budapest had still not complied and requested that the ECJ impose a fine.

After the COVID-19 pandemic outbreak in 2020, the government also pushed through a law forcing asylum seekers to travel to Belgrade or Kyiv to apply for a travel permit at its embassies there before entering Hungary. Only once back could they file their applications.

People have the right to apply for asylum or other forms of international protection if they fear for their safety in their home countries or face the prospect of persecution based on their race, religion, ethnic background, gender or other discrimination.