In December 2023, the Hungarian Parliament passed a law similar to a Russian law that prohibits foreign financing for parties or groups running for election. The law carries a punishment of up to three years in prison. It also established a Sovereign Protection Office, a state administration with access to personal data that finds and sanctions supposed foreign agents among Hungarians. This office operates without oversight and offers no legal redress.
Prime Minister Viktor Orbán enjoys a two-thirds majority in Parliament, allowing his party to introduce any law to preserve his regime. EU institutions have taken steps to address this law, which violates EU values. The European Commission launched an infringement proceeding over the law, and the European Parliament called on the European Council to consider Article 7(2) procedures. The purpose of the new legislation is to restrict any opposition and criticism of his government. This breach of the rule of law, limiting media freedom, and eradicating the independence of the judiciary has cost Hungary billions of EU funds, which remain frozen until the regime decides to fulfil its commitments.
Due to his government’s continuing anti-EU values and pro-Russia stance, Viktor Orbán has become a pariah in the EU. Nobody considers him, as the last meeting of the European Council proved. Moreover, he has isolated his country to the extent that a country holding the rotating presidency of the Council will have a strictly decorative role for the first time. On July 1, Hungary will take over the EU Presidency for the second semester of 2024.
Amidst facing criticism from the EU, Orbán seeks to provoke the United States. On June 25, the Sovereignty Protection Office investigated the Hungarian branch of Transparency International (TI), an anti-corruption watchdog, and Atlatszo.hu, an online investigative outlet focusing on corruption. In response, the US State Department condemned Hungary’s new sovereignty law on June 27, labelling the investigation as “draconian actions” and criticising it as anti-democratic.
“The United States is deeply concerned by the Hungarian government’s implementation of the ‘Defense of National Sovereignty Act,’ including this week’s draconian actions by the recently established ‘Sovereignty Protection Office’ to target the operations of civil society and independent media organisations,” the statement said.
“The Hungarian government’s attempt to harass, intimidate, and punish independent organisations runs counter to the principles of democratic governance rooted in the rule of law. This law places no limit on this entity’s ability to target the human rights and fundamental freedoms of its own citizens and puts at risk any country, business entity, or individual that chooses to engage with them. The United States will continue to advocate for the protection of civil society organisations and media freedom in the face of these anti-democratic measures,” it added.