On October 3, 2024, the European Commission initiated legal action against Hungary due to its controversial 'national sovereignty law' that imposes prison sentences on those receiving foreign financial assistance for political purposes. This law has been in effect since the beginning of the year and is deemed incompatible with EU treaties.
The Commission stated that despite previous warnings to the Hungarian government, Budapest has not made any amendments to the law. The Commission believes that this legislation undermines the democratic values and fundamental rights upheld by the EU.
The Hungarian government defends the law as a measure to protect national sovereignty. Established by legislation approved by the Hungarian Parliament in December 2023, an agency has been created to scrutinize activities funded by foreign entities and initiate investigations when deemed necessary. Budapest views this move as a response to increasing illegal attacks on Hungary's sovereignty by foreign organizations and individuals.
The agency possesses broad discretionary powers and can interfere with the work of other official bodies during investigations. Prime Minister Viktor Orban's government has long faced criticism from Brussels for actions seen as contrary to the rule of law. Orban previously claimed that the Hungarian opposition is supported by 'billions of euros' from EU and US organizations.
Daniel Freund, a Green MEP, defended the lawsuit against Hungary, stating that the controversial law is drafted in a 'Putin-style' manner. He noted that there have been 71 lawsuits against the Hungarian government to date, yet there has been no change in Budapest's stance.
Due to ongoing disputes between Brussels and Budapest, the EU's planned aid of €17 billion for Hungary is currently frozen. The US has also criticized Hungary's 'national sovereignty protection law.' In a statement earlier this year, US Ambassador to Budapest David Pressman described the agency created by the law as having 'breathtakingly broad powers,' suggesting that compared to this legislation, Russia's 'foreign agents' law is mild. Western nations argue that this 'foreign agents' law is used by Moscow to suppress civil society.
This legal action marks a significant escalation in the ongoing tensions between Hungary and the EU, potentially impacting Hungary's access to crucial financial support.