On May 13, Hungary’s ruling party Fidesz submitted a draft law that would give the government the power to target organisations it defines as a “threat to Hungary’s sovereignty.” If passed, the bill would provide the government with tools to completely silence the country’s remaining independent voices. The Estonian Human Rights Centre signed a joint statement by European civil society organisations urging the European Commission to respond decisively to the developments in Hungary.

“This bill poses an existential threat to civil society, democracy, human rights, and the rule of law in Hungary and across the European Union. The core values on which the EU is built are at risk,” said Egert Rünne, Director of the Estonian Human Rights Centre.

The draft law is the latest move in a process that began in 2012 to systematically dismantle the rule of law. It is the boldest attempt yet and requires urgent intervention using ongoing infringement procedures, funding conditionality, and the mechanisms outlined in Article 7 of the EU Treaty.

The bill, which was introduced without public consultation, targets organisations on four fronts:

• Restricting foreign funding through the Sovereignty Protection Office (SPO): According to the bill, the SPO must compile a list of organisations that receive foreign funding to “influence public life.” Once listed, these organisations may only accept foreign funding with prior approval—or risk a fine of up to 25 times the amount received.
• Blocking access to domestic funding: Organisations on the list will be barred from receiving donations through Hungary’s 1% income tax scheme. Hungarian donors will also face new burdens, including the requirement to find two witnesses to confirm that a donation does not originate from abroad.
• Misusing anti-money laundering provisions: The bill requires tax authorities and financial institutions to review every foreign funding transaction to determine whether it may be intended to “influence public life.”
• Decisions without fair procedures: Each step described in the bill raises serious concerns about legality and due process.

Clearly and extensively violating EU law, the bill would affect all organisations receiving foreign funding—including private donations from within the EU and EU institutional grants. This includes civil society groups, the media, private companies, and potentially political parties. However, the law would apply only to those listed by the government for political reasons.

If existing EU tools are not used swiftly and effectively, this will mark a clear move toward authoritarian practices. We therefore call on Ursula von der Leyen and the European Commission to take the following immediate steps:

• Request the European Court of Justice to impose interim measures in the ongoing infringement procedure concerning the Sovereignty Protection Act (case C-829/24).
• Urge the Hungarian government to withdraw the bill, and if unsuccessful, initiate a new infringement procedure addressing violations not covered by the current one.
• Support a Council vote to move forward with Article 7(1) proceedings.

Read the full letter (in English).