A Hungarian lawmaker in Prime Minister Viktor Orban’s ruling Fidesz party has proposed a bill that could significantly restrict the operations of foreign-funded NGOs that are deemed to be a threat to the country’s sovereignty.
János Halász filed a draft law late on Tuesday entitled “Transparency in Public Life”, which says that public activity in Hungary should be subject to stricter regulation.
The bill states that organisations that threaten Hungary’s sovereignty will no longer be allowed to accept foreign funding without authorisation, will not be eligible for personal income tax relief, and will have to declare their assets, among other requirements.
Hungary under Orbán has for years enacted crackdowns on NGOs and independent media, passing laws that critics argue seek to stigmatise and hinder groups that provide protection for women and minorities, offer legal and human rights assistance, and expose official corruption.
Those efforts ramped up in 2023 when Orbán’s right-wing populist government launched the Sovereignty Protection Office, an authority tasked with investigating organisations and media outlets it deems to be exerting foreign influence.
The office has the power to gather information on any groups or individuals that benefit from foreign funding and influence public debate, and Hungary’s secret services can assist in its investigations.
Under the draft law filed by Halász, the Sovereignty Protection Office would investigate organisations and recommend to the government which should be placed on a list that would entail the tougher regulations.
Listed organisations would not be allowed to be the beneficiary of a percentage of the personal income tax paid by an individual, and would have to ask people who donate to declare that the money did not come from abroad.
If the Sovereignty Protection Office discovers that a listed entity has accepted foreign aid without its authorisation, it can impose fines amounting to 25 times the accepted sum, according to the bill.
The draft law says that any foreign funding could be a threat to Hungary’s sovereignty – including EU grants for which organisations based in an EU member state are competing.
The bill says that it is a violation of Hungary’s sovereignty if an NGO or organisation “portrays Hungary in a negative light”.
Activists and critics of Fidesz have compared the Sovereignty Protection Office to Russia’s “foreign agent” law, and said it can be used to arbitrarily target government critics, including NGOs and journalists. Anyone convicted of a violation can face prison terms of up to three years.
The European Commission in December referred Hungary to the Court of Justice over the law that established the Sovereignty Protection Office. The Commission argues that the Hungarian legislation is in conflict with EU law and violates, among other things, the right to the protection of personal data, freedom of expression and association.
Hungarian NGOs contacted for comment by Euronews said they would publish a joint response to the bill in due course.
