EU launches legal action against Hungary’s controversial ‘sovereignty law’

The European Commission, on Wednesday (Feb 7) launched legal action against Hungary’s controversial “sovereignty law” which the ruling Fidesz party of Prime Minister Viktor Orban said was necessary to protect Budapest from foreign political interference. 

The legislation, “protecting national sovereignty,” was led by Orban’s ruling party and approved by the Hungarian parliament in mid-December. It allows authorities to investigate and prosecute people accused of undermining the country’s sovereignty.

The European Commission, EU’s executive arm, on Wednesday, said that it has sent Hungary a formal notice that it would open an infringement procedure over the law, which it also said violates the 27-nation bloc’s democratic values and fundamental rights.

Brussels considers Hungary’s new law several elements of EU law, “in particular when it comes to the principle of democracy and the electoral rights of EU citizens,” said commission spokeswoman Anitta Hipper. 

Meanwhile, critics have called the recent law the Orban-led nationalist government’s latest bid to silence opponents ahead of crucial European Parliament elections and Hungarian municipal elections in June. 

The legislation came as the incumbent PM’s government has repeatedly clashed with the EU over democratic rights in Hungary. 

Budapest has two months to respond to the letter of formal notice. The letter of formal notice is the first step in the infringement procedure and can lead to a lawsuit and daily fines before the European Court of Justice. 

The new law’s implementation rests on the “Office for the Defence of Sovereignty,” which can collect information on individuals or groups that receive foreign funding and are perceived to influence the country’s political debate and electoral processes.

The separate authority can also punish banned foreign financing for parties or groups running for election with up to three years in prison. 

Notably, the provisions under the law have been called broad but vague and importantly it lacks judicial oversight, which has raised serious concerns from independent media outlets and rights groups.

“The setup of a new authority with wide-ranging powers and a strict regime of monitoring, enforcement and sanctioning also risks to seriously harm the democracy,” said Hipper, during a press conference in Brussels. 

Orban’s ruling Fidesz party has argued that the law will end “electoral trickery” amid accusations that opposition parties in Hungary received funds from a US-based NGO in the run-up to the 2022 elections.

The United States had previously criticised the law calling it “draconian” and said that it was “inconsistent with our shared values of democracy, individual liberty and the rule of law.” 

(With inputs from agencies)