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EU Begins Process To Claw Back Funds From Hungary

Hungarian Prime Minister Viktor Orban talks to reporters at The European House Ambrosetti (TEHA) economic forum in Cernobbio, Como Lake, Italy, Friday, Sept. 6, 2024. (AP Photo/Luca Bruno)

The European Union has initiated steps to reclaim hundreds of millions of euros from Hungary after the country's government, known for its anti-migrant stance, refused to pay a substantial fine for breaching the EU's asylum regulations.

In a ruling issued in June, the EU's highest court mandated Hungary to pay a fine of 200 million euros ($223 million) for consistently denying migrants the right to seek asylum. Additionally, the court imposed an extra penalty of 1 million euros for each day of non-compliance.

The European Court of Justice characterized Hungary's actions as a severe violation of EU law. Hungarian Prime Minister Viktor Orbán criticized the ruling as unacceptable.

The European Commission, the EU's executive arm, announced that due to Hungary's failure to pay or communicate its intentions, it is resorting to an 'off-setting procedure' by deducting the sum from common EU funds allocated to Hungary.

The Commission stated that it will deduct the 200 million euros from future EU budget payments to Hungary, with a process underway to identify the specific funding streams subject to deduction.

Furthermore, the Commission has issued an initial payment request for the daily fines totaling 93 million euros ($103 million) to Hungary, allowing a 45-day window for the authorities to make the payment.

Hungary's government has maintained a strict stance on border control since the influx of over 1 million migrants into Europe in 2015, primarily from conflict-ridden Syria.

The legal action against Hungary pertains to modifications made to its asylum system following the 2015 crisis, including the erection of border fences and the establishment of transit zones for asylum seekers.

In 2020, the ECJ found Hungary guilty of limiting access to international protection, unlawfully detaining asylum applicants, and failing to respect their rights during the application process. The transit zones were subsequently closed.

Despite these closures, the European Commission deemed Hungary non-compliant and urged the ECJ to impose fines. In response to the COVID-19 pandemic, Hungary introduced a law mandating asylum seekers to apply for permits at Hungarian embassies in Belgrade or Kyiv before entering the country.

Individuals have the right to seek asylum or international protection if they fear persecution based on factors such as race, religion, ethnicity, gender, or other forms of discrimination.

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