Magyar seeks EU migration fine refund, wielding budget veto

Hungarian Prime Minister Péter Magyar is demanding the European Union refund almost €1 billion in accumulated migration fines and return an additional €2 billion in withheld recovery funds. Magyar is tying these requests to the bloc's upcoming seven-year budget, which requires unanimous approval from all 27 member states by the end of the year. "I believe we will get it, since the budget requires a unanimous decision," Magyar said.

The penalties stem from a 2020 European Court of Justice ruling that found Hungary breached EU law by denying asylum seekers the right to fair treatment. In 2024, Brussels imposed a €200 million lump sum and a €1 million daily penalty on Viktor Orbán's government for failing to comply. Hungary had routed all asylum applications to its consulate in Belgrade and rejected the vast majority while maintaining a border fence with Serbia.

Since taking office after a landslide election victory in April, Magyar has continued to accumulate penalties, with a further €69 million added to the tally. However, he argues the political context across the continent has shifted, rendering the fines unjustified. "It is clear that the attitude in Europe is changing completely, and now almost every member state, except one or two, wants to act – and will act – much more radically and forcefully in preventing illegal migration," Magyar said.

Magyar's argument rests on recent policy moves by other member states and the European Commission. Italy has opened an asylum processing centre in Albania, while Brussels is actively working to externalise migration management and establish return hubs outside EU territory. "It is unfair and unacceptable that Hungary, in an entirely new situation, has to pay a million euros a day for a measure that others are also taking," Magyar added.

The demand poses an immediate challenge to EU fiscal planning. By weaponising Hungary's unanimity requirement, Magyar is testing how far the Commission will go to maintain relations with Budapest under his new administration. In May, Magyar and Commission President Ursula von der Leyen agreed to unlock €16.4 billion in previously frozen cohesion and recovery funds, though Hungary must still complete rule-of-law reforms to access that cash.

The separate €2 billion Magyar is now chasing was withheld over missed deadlines in 2024 and 2025. His government says it is working closely with the Commission to resolve the daily fines while keeping migrants outside its borders. Whether Brussels ultimately concedes to these refund demands will signal the true political cost of securing a smooth budget process this winter.