Friday, May 22, 2020

The E.U. Says No to Hungarian Asylum Detention Camps: A Test for E.U. Federalism

On May 11, 2020, the European Court of Justice (ECJ), the E.U.’s highest court, ruled against the state of Hungary on its detention camp near the Serbian border. The state had denied the asylum requests because the immigrants had come through Serbia, and the latter refused to allow them to reverse course. The immigrants were thus stuck, essentially detained in “prison-like conditions.”[1] The high court ruled that the “conditions prevailing in the Roszke transit zone amount to a deprivation of liberty.”[2] ECJ Advocate General Priit Pikamae had argued that the “unlawful detention” was due to the “high degree of restriction of the freedom of movement.”[3] The state of Hungary had argued that the immigrants could have stayed in Servia, as it was a safe-country of transit, and thus were not eligible for asylum in Hungary. Unlike Hungary, Serbia was not an E.U. state, which may be why the asylum-seekers did not want to remain in Serbia. Hence being a border state added to Hungary’s woes. Therefore, the E.U. had some responsibility to alleviate the pressure on Hungary. Yet the Union did not do so, showing its weakness, and yet the state government bowed to the ECJ’s ruling. To the extent that the E.U. relies on such self-subordination in the want of federal help, the E.U. could be said to be on borrowed time during which basic adjustments to the federal system could be made.

As a border-state of the E.U., Hungary doubtless felt that it could be overwhelmed by asylum-seekers from the Middle East. This set the state’s particular interest at odds with the common interest of the Union because Hungary and other border states would bear the disproportionate weight of the waves of asylum-seekers in the late 2010s. Even though the state’s prime minister, Viktor Orban, was a Euroskeptic, or state rights proponent, and thus especially oriented to his state’s interests, he bowed to the federal court’s ruling, and thus authority. “The Hungarian government disagrees with the ruling, we consider it a risk with regard to European security, but as an EU member state, we will adhere to all court rulings,” Gergely Gulyas, a government spokesman, said at the time.[4]  Even though the E.U. had not come in to solve the intractable problem of the camps, the Euroskeptic state would act according to the ruling of the federal supreme court. This may mean that the E.U.’s federal system had strength at the state level in spite of weakness in united action for the whole—that is, more strength than the Union deserved.

Generally speaking, a federal system is internally vulnerable, and thus weak, to the extent that it must rely on the voluntary subordination of the state governments who must nevertheless suffer from insufficient federal power to redress Union-related state problems. To be sure, a federal system is weak if the states recognize federal authority only when it suits them. Hence the U.S. federal government acted against the state of South Carolina in 1832 after it passed a law invalidating any federal law in the state that goes against the state’s interest. Yet if state governments suffer enough adverse federal judicial decisions without federal help with problems that are acute at the state level (especially if acute because the state is in the federal system), then at some point secessions may result in the dissolution of the federal system.

In the E.U., the federal level was at the time still too hamstrung by overarching state power to be able to act sufficiently even to help particular states on problems stemming from the states’ respective roles or situs in the Union. For example, any state government could veto the proposed law to help the most economically distressed states financially in the midst of the coronavirus pandemic. The power of the states generally is made worse by the strangle-hold that the most powerful states had over the federal level (think Germany and France). Money would not be allocated for the E.U. to deal with the asylum-seekers in Hungary’s detention camps if the most dominant state governments did not agree that the common interest in doing so was worth it to those states. To the extent that the most powerful states could effectively use federal institutions in line those states’ own interests even at the expense of common problems, other states, such as Hungary, would naturally be Euroskeptic. For such a state to recognize an ECJ ruling averse to the state’s interests anyway is surely laudable, even if it buys the Union added time to redress the problem of the imbalance of power between the federal and state levels.


[1] Deutsche Welle, “Hungary Illegally Held Asylum-Seekers, ECJ Rules,” DW.com, May 14, 2020 (accessed May 22, 2020).
[2] Ibid.
[3] Ibid.
[4] Deutsche Welle, “Hungary to Close Transit Zone Camps for Asylum-Seekers,” DW.com, May 21, 2020 (accessed May 22, 2020).

Wednesday, May 20, 2020

An E.U. Economic Recovery Fund: A Federal Problem

On May 18, 2020, with the E.U. Commission having been no match for the states’ own interests in their own health and economic crises, the governors of France and Germany announced that they would support a recovery fund to help the states most in need. The €500 billion fund of grants (not loans) would be raised on the capital markets and guaranteed by the state governments. It would be part of the federal budget.[1] I submit that the imbalance in that federal system is evident; here again, the power of the state governments relative to the federal Commission shows the weakness of the latter.

Not coincidentally, the governors’ joint announcement fit nicely with the proposal yet to be unveiled by the European Commission. Because the fund would be part of the federal budget, a federal institution (i.e., the Commission) should arguably have made its announcement prior to that of the two state executives. That the state-level took the lead on a federal program suggests that the federal level was itself relatively weak. It is telling that had the Commission gone first, the state governments would likely have ignored the proposal.

Yet to rely on the largest states to act de facto as the federal level makes the Union vulnerable to the common interests being subject to the particular interests of the most powerful states. It is no accident that the Commission would use “the argument that the fund is an exercise in common self-interest.”[2] The other states would rightly have been suspicious had France and Germany used that argument. So we have the pertinent argument to be made by the Commission only in retrospect. This in itself may point to how important the common interest actually has been in a Union whose legitimacy is based precisely on common interest.

To be viable in the long-term, a federal system must maintain a balance of power between the federal and state levels. Too much federal power and the system consolidates; too much state power and the risk is dissolution of the federal system. Short of dissolution, a state-heavy federal system pays too much heed to the particular interests of states and can even be dominated by the most powerful state (or states). Throughout its entire history as of 2020, the E.U. suffered from this imbalance. The want of federal power to provide a check on excessive state power over federal institutions and the Union itself was evident, for example, as rich Northern states were able to thwart federal efforts to mitigate the austerity of heavily indebted states such as Greece and Spain after the financial crisis of 2008.

Efforts to minimize redistribution within a federal system, moreover, reflect a minimal notion of the common interest. While such a view is consistent with a confederation in which all of the sovereignty resides with the states, the minimal approach can stifle a federal government’s use of its portion (or competencies) of sovereignty, which in turn should match the common interests with which the federation is tasked. Having a federal currency, for instance, implies the need for monetary and even fiscal policy for stabilization purposes. Hence the Commission was set to argue that the Eurozone itself could be destabilized if an uneven economic recovery were to occur after the coronavirus pandemic. Hence the need for the redistributive recovery fund. To have established the common currency and yet insist on a minimal notion of common interest is self-contradictory because having such a currency expands the common interest. In other words, to give federal governmental institutions competencies geared to protecting or furthering the common interest and then narrowing it to bind the federal use of the competencies essentially ties the federal level in knots. While this strategy may be in the immediate interests of the states (especially the most powerful) in holding back any possible federal encroachment, the federal system itself suffers from the want of federal power, given its competencies.


[1] Katya Adler, “Politics and PR: Behind the Scenes of Franco-German Recovery Fund,” BBC.com, May 18, 2020.
[2] Ibid.