New EU Competitiveness Deal Is in the Works

While the issue of the fine imposed on Hungary pursuant to the infringement procedure on migrants is in the process of being settled, the informal meeting of the General Affairs Council in Budapest did not focus on this, but on strengthening the EU's competitiveness and tackling demographic challenges.

Hungarian EU Affairs Minister Janos Boka at a press conference following the informal meeting of the EU General Affairs Council in Budapest on September 3, 2024 (Photo: Istvan Mirko)

"We have received a new letter from the European Commission regarding the payment of the EUR 200 million fine", confirmed Janos Boka, Hungary's EU affairs minister, in response to a journalist's question at a press conference following the informal meeting of the General Affairs Council (GAC), which is responsible for preparing the meetings of the European Council and also for several horizontal policy areas.

Following the ruling of the relevant infringement procedure, the Court of Justice of the European Union announced in June that it would impose a fine of €200 million (plus €1 million per day until payment) on Hungary for failing to change its policy on migrants. According to the letter referred to by the minister, the deadline for payment is September 17, Magyar Nemzet found out.

There are two ways to pay such a fine: either pay it in directly or have it deducted from the receivable payments, the minister said, adding "There have been examples of both solutions in the history of the EU, so this is a technical issue." 

But it is an issue of a political nature that Hungary has been stepping up its efforts considerably to protect the external borders of the European Union for almost a decade. And this effort has consumed serious amounts human, financial and political capital, while the EU has shown little solidarity towards Hungary in this regard,

Minister Janos Boka stressed, pointing out that the implementation of the judgment also has political and budgetary ramifications, which the Hungarian government must weigh. "Work is ongoing and they are looking at the potential types of claims that we can make against the EU," he said in response to a question on whether the fine could be deducted from the €800 million Hungary has already spent on protecting the EU's southern external border since 2015.

Mr Boka reported that EU affairs ministers came to the Hungarian capital at his invitation for the informal meeting of the General Affairs Council. There was no hint of discrimination at the meeting, which focused on the priorities of the Hungarian EU Presidency, namely strengthening the EU's competitiveness and addressing its demographic challenges. Participants agreed that the quality of EU legislation could be improved in a number of areas, and discussed how to secure the necessary funding for new initiatives.

The aim of the Hungarian Presidency is to finalize a new European competitiveness agreement, the outlines of which will be visible at the November meeting in Budapest,

he said, stressing that investment in modern technology is key.

On the demographic challenges facing the European Union, the minister pointed out that if current trends continue, by 2070 only 3.7% of the world's population will be living in Europe, compared to the presently "nearly 10%", raising serious questions about Europe's future.

Cover photo: Hungarian EU Affairs Minister Janos Boka at a press conference following the informal meeting of the EU General Affairs Council in Budapest on September 3, 2024 (Photo: Istvan Mirko)