EU outraged: Infringement procedure may follow Hungary’s National Card Programme

The European Union may launch another infringement procedure against Hungary following concerns raised by Germany and Lithuania over Hungary’s National Card Programme, which allows Russians and Belarusians to enter the Schengen Area with minimal scrutiny. The new Hungarian scheme was launched in July, and at least five Russians and two Belarusians have since received residency permits in Hungary, granting them access to the Schengen Area. Some EU member states are irritated by the programme, fearing it could lead to an increase in Russian espionage activities.

EU may launch new infringement procedure against Hungary

According to the Hungarian edition of Forbes, Brussels is not satisfied with the Hungarian government’s responses regarding the National Card Programme’s extension to Russian and Belarusian citizens. Germany and Lithuania have expressed serious concerns about the scheme. As a result, the European Union is likely to initiate another infringement procedure against Hungary, as reported in the latest issue of the German economic newspaper, Handelsblatt.

The paper also reported that Hungary’s ongoing dispute with the EU over allowing Russian and Belarusian citizens to enter the Schengen Zone without proper supervision has reached a new level. The paper quoted Josep Borrell, the EU High Representative for Foreign Affairs and Security Policy, who stated that the recent ministerial summit was the most intense in the past five years. The governments of Lithuania and Germany have raised serious security concerns about Hungary’s decision and its rationale.

Increasing Russian espionage activity in the EU?

On 21 August, Forbes reported that the Hungarian government was in intensive discussions with the EU about the programme. However, the scheme had already been launched on 8 July. By 21 August, five Russians and two Belarusians had already been granted Hungarian residency permits, giving them access to the Schengen Zone. It is presumed that this number has increased significantly, as there were 26 pending applications as of 21 August.

The Hungarian government claims the programme is necessary due to labour shortages in Hungary. But why specifically Russians and Belarusians? The Orbán government argues that these workers are needed for the Paks II nuclear power plant expansion project.

Meanwhile, some EU member states and even Hungarian experts have raised concerns. They believe the scheme creates loopholes for Russian spies to enter the Schengen Zone without adequate checks. Before 8 July, six countries were part of the programme: Bosnia and Herzegovina, North Macedonia, Moldova, Montenegro, Serbia, and Ukraine.

The Hungarian government denies all allegations

National Card applicants undergo “the same migration and security screenings as applicants for any other residence permit,” the State Secretary for Government Communications, Zoltán Kovács, highlighted last week. He also dismissed concerns about increased espionage activities as “fiction.”

Kovács explained that the cards could be obtained for stays of between 90 days and two years for employment purposes, adding that applicants are required to have an employer and a specific job position. Cardholders must reapply if they change jobs.

Multiple advantages of the National Card

The National Card offers multiple benefits. Firstly, there is no limit to the number of guest workers who can enter Hungary with it. Secondly, there are no excluded job categories, and guest workers are not required to provide proof that their skills are needed in Hungary. If they extend their permits, they are not required to pass a cultural knowledge exam. Finally, those who obtain a National Card can bring their families to Hungary. The card is valid for two years but can be renewed for three-year periods indefinitely.

András Rácz argues that Russians and Belarusians would not need a National Card to work on the Paks II project. Only those who wish to become eligible for all jobs would require this permit. Mr Rácz believes the expanded National Card scheme allows large numbers of Russians and Belarusians to enter Hungary unchecked. He suggests it could serve as a substitute for the Russia-based International Investment Bank, which ceased operations in Budapest due to US concerns following the invasion of Ukraine. Mr Rácz also contends that Hungarian authorities are ill-prepared to conduct thorough checks on a significant influx of people from Russia and Belarus.

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