EU Parliament joins lawsuit against Hungary over controversial Sovereignty Law

EU Parliament joins lawsuit against Hungary over controversial Sovereignty Law
EU Parliament joins lawsuit against Hungary over controversial Sovereignty Law / bne IntelliNews
By bne IntelliNews February 19, 2025

The European Parliament (EP) legal committee voted on February 18 to join the lawsuit against Hungary in the European Court of Justice regarding the controversial sovereignty protection law adopted in late 2023.

The proposal was passed with overwhelming support – 19 in favour, one abstention and one vote against, according to leftist Nepszava, which recalls that the Czech Republic and Denmark have already joined the case, and more countries are expected to come on board before the February 27 deadline.

The Finnish and Dutch parliaments could vote on the matter later this week, and a coalition of civil organisations recently sent a letter to the French government, urging one of the EU's key member states to support the case as well.

Nepszava learned from the EP press office that President Roberta Metsola will follow the recommendation of the committee in the case.

The lawsuit was initiated by the European Commission a year ago as the final step of the infringement procedure against Budapest after it failed to address concerns over the legislation.

The European Commission argued that the law violates multiple EU regulations, fundamental rights protected by the EU Charter of Fundamental Rights, and runs counter to democratic values.

The law established the Sovereignty Protection Office (SPO), which began its operations in February 2024. The Hungarian government justified its creation by claiming that the office would serve as a safeguard against foreign influence, particularly in political and economic matters.

The SPO was granted broad investigative powers to monitor and counteract what the government describes as external attempts to interfere in Hungary's internal affairs, including foreign funding of political organisations, NGOs and media outlets.

The law criminalises receiving foreign funding for political purposes, among other things.

Critics argue that the legislation grants the SPO sweeping powers to investigate both individuals and organisations with limited oversight, which could be weaponised to silence dissent, further raising concerns about press freedom and civil society operations in the country.

The first year of the SPO's operation appears to confirm these fears, as the office launched a series of attacks against investigative news sites Atlatszo and Direkt36, as well as against anti-graft NGO Transparency International.

In June 2024, the SPO initiated a comprehensive investigation into Transparency International Hungary. The organisation received a six-page letter containing 62 questions probing various aspects of its operations, including foreign funding sources and communication practices. The SPO alleged that the NGO engaged in activities funded by foreign entities aimed at influencing electoral decisions.

The financial landscape for Hungarian NGOs and media organisations faced further challenges in February 2025 following the freeze on USAID funding. Unsurprisingly, the ruling nationalists praised the closure of USAID, asserting that such organisations undermine the government.

Prime Minister Viktor Orban has called for the "full elimination of the Soros network" and stated that sanctions must be imposed against anyone who accepts foreign funds with the aim of influencing Hungarian politics.

Civil organisations and NGOs have received money from "the Soros foundations, the US government, and Brussels" to strengthen opposition parties and topple the government, the prime minister said in a recent interview. This aligns with the prime minister's long-standing narrative that foreign forces seek to exert influence over Hungary.

Orban laid out plans to draft new legislation targeting NGOs ahead of the 2026 elections, which will likely be a key topic in the campaign.

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