The European Commission announced on Wednesday that it will refer Hungary to the EU's top court after Hungary's 2023 decision to release and expel thousands of imprisoned people smugglers to ease the burden on its prison system.
The European Commission has referred Hungary to the Court of Justice of the European Union (CJEU) for breaching EU rules on combatting migrant smuggling, escalating yet another legal and political clash between Brussels and Prime Minister Viktor Orbán’s nationalist government.
The Commission’s move follows Hungary’s controversial April 2023 decree, which authorized the release of over 2,400 convicted people-smugglers from prison, granting them 72 hours to leave the country. The Hungarian government defended the measure as a cost-saving move to ease prison overcrowding. However, the Commission argues the decree undermines EU efforts to tackle organized crime and violates key provisions of European law.
"This Government Decree undermines the objective to effectively tackle migrant smuggling, the deterrent factor of the EU Facilitators legislation, and the joint EU efforts in countering migrant smuggling," the Commission said in a statement.
Under EU law, Council Directive 2002/90/EC and Council Framework Decision 2002/946/JHA, member states are obligated to impose "effective, proportionate and dissuasive" penalties for facilitating unauthorized entry, transit, or residence of non-EU nationals. The Commission contends that Hungary failed to ensure that smugglers serve their sentences or face any credible punishment.
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Released without oversight
The 2023 Hungarian decree introduced a system known as "reintegration detention," which effectively replaced prison sentences with expulsion orders. The assumption was that released smugglers would serve their sentences in their home countries — but Hungary did not implement any system to monitor or enforce these sentences abroad.
As a result, many of the released individuals, most of whom were foreign nationals, moved freely within the Schengen zone. Neighboring Austria responded by tightening its border controls and sharply criticizing Hungary's decision. A spokesperson for the Austrian Interior Ministry called people-smugglers "criminals" whose actions put lives at risk.
The EU has intensified its efforts to combat migrant smuggling with the European Commission’s proposed Facilitation Directive. However, it has drawn strong criticism from NGOs, who warn it could criminalize humanitarian and solidarity actions. While the directive aims to update rules targeting smugglers, critics argue its broad definitions risk prosecuting aid workers, NGOs, and even migrants themselves.
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A deepening rift
The Commission began formal legal proceedings in July 2023, issuing a letter of formal notice to Budapest. When Hungary’s response failed to address the EU’s concerns, a reasoned opinion followed in October. With no resolution reached by December 2024, the Commission announced this week that it would escalate the matter to the EU’s top court.
This legal dispute is part of a broader standoff between the European Union and Hungary. The Commission has frozen billions of euros in EU funds over concerns over issues such as the treatment of asylum seekers, LGBTQ+ rights, judicial independence, corruption, and academic freedom.
Hungary has repeatedly pushed back against Brussels' criticism, arguing that EU policies themselves encourage irregular migration and embolden human traffickers. The Orbán government maintains that its strict border policies are essential to protecting national sovereignty and European borders.
The CJEU now has the authority to impose further sanctions or require Hungary to reverse the decree. In a separate case last year, the court fined Hungary 200 million euros and imposed a one million euros daily penalty for illegally deporting migrants.
The outcome of this latest case could have far-reaching implications for both EU migration policy and the balance of power between Brussels and member states increasingly at odds with its rules and values.