Hungary has proposed a resolution to its dispute with the European Commission over the Erasmus+ and Horizon Europe funding programs, while continuing to resist paying substantial fines imposed by the European Court of Justice (ECJ) for violations of asylum laws. The fines have now reached €360 million.
The Erasmus+ issue dates back to December 2022, when the European Commission excluded 21 Hungarian universities and over 30 institutions from the funding programs. The decision stemmed from concerns about government-linked figures on university management boards, as well as issues surrounding academic freedom, transparency, and conflicts of interest.
In response, Hungary’s National Assembly passed amendments to its law governing public-interest asset management foundations, known locally as “kekva.” These foundations, which oversee many universities, have been revised to bar high-level politicians from their boards and strengthen the assessment of conflict-of-interest declarations. Hungary’s EU Affairs Minister, János Bóka, stated that the government would notify the Commission of the changes soon, initiating an evaluation process to determine if the amendments meet EU standards.
Justice Commissioner Didier Reynders, speaking alongside Bóka, indicated optimism that a solution could be reached by the end of the year, provided Hungary adequately addresses the Commission’s concerns. However, he noted that prior proposals from Hungary had failed to resolve issues of conflicts of interest.
This exclusion from Erasmus and Horizon programs is part of broader EU sanctions tied to rule-of-law deficiencies, which have also frozen €6.3 billion in EU cohesion funds for Hungary. These funds are part of a larger €11.7 billion package currently on hold due to issues such as public procurement irregularities and corruption concerns. Hungary has also been blocked from accessing most of its €10.4 billion COVID-19 recovery fund.
Simultaneously, Hungary faces escalating penalties from the ECJ for violating asylum laws. In June, the court imposed a €200 million lump-sum fine and daily penalties of €1 million for continued non-compliance. The fines, now totaling €360 million, continue to grow. While the European Commission has begun deducting the €200 million from Hungary’s EU funds, daily fines remain unpaid. Talks between Budapest and Brussels on complying with the ECJ ruling are ongoing, but Prime Minister Viktor Orbán has dismissed the judgment as “outrageous and unacceptable,” accusing the ECJ of judicial activism.
The resolution of these disputes remains critical for Hungary’s access to vital EU funding streams and its relationship with the European Union.