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The Hungarian government is continuously in breach of the law on three important issues, which is why the European Commission decided to take action within the framework of the infringement procedure. Two out of three cases are about unenforced court judgments, which are expected to have serious financial consequences.
As part of the initiation of one of the procedures, the Brussels body calls on Hungary as well as Spain to comply with the rules on highway concession contracts. The European Commission considers that
Hungary’s 35-year concession was not transparent with regard to the estimated value, did not transfer the appropriate operational risk, and was extended for an unreasonably long time in violation of EU law.
Hungary now has two months to respond to the arguments put forward by the Commission. Otherwise, the Commission may decide to send a reasoned opinion, which means the continuation of the procedure.
In the other case, they call on the Hungarian government to comply with the previous judgment of the European Court of Justice, “on the obligation to ensure effective access to the international protection procedure”.
In its judgment of June 22, 2023, the Court found that Hungary did not fulfill its obligations arising from EU asylum rules. They concluded that
Hungary violated the directive on common procedures for granting and withdrawing international protection when it did not ensure that third-country nationals or stateless persons could effectively access the international protection procedure.
This is about the Hungarian system, where the asylum procedure can only be initiated at an embassy, first in the form of a letter of intent, and then, in the case of a positive evaluation, the person concerned can receive an entry permit to carry out the procedure. However, all of this is contrary to the principle of international law that the request for asylum can be indicated at the border.
Hungary did not react to this judgment in any way. The government is now given two more months of respite, and depending on the response received – or not – the Commission may decide to refer the case back to the Court and recommend the imposition of financial sanctions.
Finally, the third case is also about incomplete compliance with a previous court decision made three and a half years ago, in whose case the breach of duty procedure is now being initiated. And this is a previous decision in the Lex CEU case – although the document did not name it, the case can be identified without any doubt.
The judgment established at the time that the Hungarian legislation required that the government of Hungary and the government of the state where the relevant institution is headquartered commit themselves to the operation of the institution in an international treaty. Secondly, it required that, in order to carry out activities in Hungary, the educational institution must carry out higher education activities in the state in which it is based, including the member states of the EEA. However, they violated many EU and international regulations. The new Hungarian law adopted on May 18, 2021 no longer includes the second requirement, but still requires the conclusion of an international contract,
constantly violating the principles of the GATS (General Agreement on Trade in Services) and the EU Charter of Fundamental Rights.
The Commission therefore sent a letter of notice to Hungary, and two months were given for a response. In the absence of an adequate response, a lawsuit may be initiated against Hungary in this case as well, at the end of which financial sanctions can be expected. In practice, this means a daily fine from October 20, 2020 until the day of compliance with the judgment.
It is important to note that due to the Lex CEU and the Asylum Act, Hungary may not only be subject to financial sanctions due to a possible judicial decision. The European Commission withholds more than one and a half billion euros from the seven-year EU budget precisely because the government does not align its own legal order with that of the European Union.
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Tags: EUrologist Asylum case Lex CEU highway concession disputes Hungary financial consequences
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